Inquiry Concerning the Commission's Pricing Policy for Transmission Services Provided by Public Utilities Under the Federal Power Act

The Commission in its Transmission Pricing Policy Statement, issued on October 26, 1994, announced a new policy regarding the pricing of transmission services provided by public utilities and transmitting utilities under the Federal Power Act that allows greater transmission pricing flexibility than was allowed under previous Commission policies. The Commission traditionally had allowed only postage-stamp, contract-path pricing. the Policy Statement announced that the Commission also will allow a variety of other pricing methods that may be more suitable for competitive wholesale power markets, including distance-sensitive and flow-based pricing. In response to filings by certain entities, the Commission is denying requests for reconsideration of the Policy Statement; however, the Commission is clarifying certain matters concerning non-conforming transmission pricing proposals.