Transmission Access Policy Study Group

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Federal Legislation

TAPS has been active before Congress on behalf of transmission-dependent utilities since before 1992, when it was very active in efforts to mold and pass the Energy Policy Act of 1992. For the first time, this Act gave the FERC clear authority to order the provision of transmission service. TAPS was the primary advocate for transmission-dependent systems in the legislative debate. TAPS' lobbyists worked hard on the language on what are now Sections 211 and 212 of the Federal Power Act and got crucial language changed on pricing that would have undercut the just and reasonable standard on the same day that the bill was finally adopted by the Senate and House Conference Committee. TAPS members were critical in shaping the Senate colloquy language on non-discriminatory transmission access, which supported FERC's adoption of its standard requiring “comparable” access. TAPS also was one of the four or five key participants in the marathon negotiations to add a regional transmission group (RTG) provision in the bill. Other participants were the Large Public Power Council and EEI, who were allied, independent power producers, DOE and FERC. While an RTG provision ultimately was not enacted, the negotiations provided the impetus for FERC to issue a policy promoting RTGs and then to move to the concept of independent system operators (ISOs) and regional transmission organizations (RTOs). The 1992 Act resulted in FERC requiring all private utilities to provide transmission service to transmission-dependent utilities, marketers and others.

More recently, TAPS engaged in multi-year lobbying efforts leading up to passage of the Energy Policy Act of 2005, which was signed into law on August 5, 2005.  TAPS actively participated in negotiations pertaining to the Native Load/Service Obligation provision designed to protect existing transmission rights of all load serving entities, whether transmission owners or transmission dependent utilities, and to facilitate the planning and expansion of the grid to meet their needs and enable them to obtain long term transmission rights for long term power supply arrangements, TAPS also was a leader in the broad coalition of public and private utilities, large customers, independent transmission companies and others that successfully opposed language that would mandate “participant funding” of transmission upgrades.  Starting in the late 1990s, TAPS participated in negotiations related to legislation to create a new, independent national self-regulating reliability organization, under FERC oversight, with the teeth necessary to enforce reliability standards developed through a process that ensures balanced representation of all interests.  Other provisions of EPAct 2005 on which TAPS focused include transparency, enhanced merger review authority, and a prohibition against market manipulation.

 

TAPS' legislative successes come from hard work, grassroots advocacy and coalition building.  TAPS members have testified before the House Judiciary Committee, and the Energy and Power Subcommittee of the House Commerce Committee and the Senate Energy Committee to seek strong transmission and market power provisions in federal legislation. TAPS has conducted numerous meetings with members of Congress in which the PowerWorld computer simulation of the transmission system has been used to explain how transmission capacity and availability can be manipulated by large transmission owners and generation owners. TAPS regularly meets with FERC Commissioners and staff, and also has met with officials at the Department of Energy, the Antitrust Division of the Justice Department, the Federal Trade Commission and other policy bodies in Washington on TAPS issues.