Promoting Wholesale Competition Through Open Access Non- Discriminatory Transmission Services by Public Utilities; Recovery of Stranded Costs by Public Utilities and Transmitting Utilities

The Federal Energy Regulatory Commission affirms, with certain clarifications, the fundamental calls made in its order on rehearing of the final rule in this proceeding. The final rule directed public utilities to open their transmission lines to competitors and to offer them the same charges and conditions they apply to themselves. The rule also gave utilities an opportunity to seek recovery of certain stranded costs, i.e., costs that were prudently incurred to serve customers that use open access transmission under the final rule to shift to another power supplier. The Commission in this order clarifies its position on recovery of stranded costs in the case of municipalizations and municipal annexations, where customers previously served by a public utility become customers of a municipal utility instead.