FERC Targets Six Utilities’ Market Power

Six big U.S. utilities have the ability to influence wholesale electricity prices unfairly in their markets, based on rules spawned by California’s 2000-01 energy crisis, the Federal Energy Regulatory Commission said.

In a major ruling, FERC commissioners gave the utilities 60 days to propose ways to dilute their market power. If they fail, they could forfeit their right to sell electricity at market-based rates and face potential refunds.

The companies targeted by FERC are Alliant Energy Corp., American Electric Power Co., Duke Energy Corp., Entergy Corp., Southern Co. and Kansas City Power & Light Co., a unit of Great Plains Energy Inc.