TAPS, an acronym for the Transmission Access Policy Study Group (or as the founders conceived, a group dedicated to playing "taps" for transmission market-power), was formed by several joint action agencies and individual municipal electric systems in 1989. At that time, Pacific Gas & Electric Company was lobbying FERC heavily for permission to charge market-based transmission rates. TAPS systems came together to provide a strong voice in opposition to this initiative and similar proposals. At that time, FERC lacked clear authority to order transmission service and utilities like PG&E were strongly arguing for significant incentives (bribes) to provide transmission service to transmission-dependent utilities on a "voluntary" basis. As a result of the efforts of TAPS and others, the PG&E proposal was never approved by FERC.  

After this initial victory, TAPS became a forceful voice at the FERC and in Congress for the interests of transmission-dependent utilities (TDUs) -- that is, those utilities that must rely on transmission facilities owned by others to serve their loads. TAPS' focus is on transmission and market power issues that are crucial to the competitive viability of small systems and to creation and maintenance of truly competitive wholesale markets for the benefit of all electric consumers. Members are a mix of joint action agencies and individual municipal systems, and some regional groupings of municipal and cooperative systems. A few own transmission, but also rely on the facilities of others. One private utility, Madison Gas & Electric Company, is a member, as is New Hampshire Electric Cooperative.

By working together through TAPS, each TAPS member is able to have a voice in important FERC policy proceedings and legislative initiatives, at significantly less cost than it would take to proceed individually. In addition, by working together as a unified group, we have increased the political and regulatory clout of TDUs significantly.