USA – CALIFORNIA Law and Practice Contributed by: Nora Sheriff, Gwenneth O’Hara, Samir Hafez, Antonio Carrejo and Elisa Rivas, Buchalter
broad authority to investigate and penalise anti- competitive behaviour and market manipulation in wholesale electricity markets. FERC’s powers include: • conducting formal investigations; • performing audits; • ordering specific actions; and • imposing civil penalties. The CPUC’s Affiliate Transaction Rules, which apply to the IOUs, also serve to limit anti- competitive behaviour resulting from the IOUs’ monopoly status. These rules are intended to prevent ratepayer subsidies of non-regulated utility enterprises, foster a fair competitive envi- ronment, and enhance energy market competi- tion. In California, CPUC GO 131-E governs the planning and construction of electric genera- tion resources, transmission, power, distribution or distribution lines, and electric substations. There are three overarching review processes for CPUC authorisation of electrical generation resources and infrastructure projects. The first is obtaining a Certificate of Public Con- venience and Necessity (CPCN) from the CPUC, which is required for: • any new electric generating plant having in aggregate a net capacity available at the bus- bar in excess of 50 megawatts (MW); • the modification, alteration or addition to an existing electric generating plant that results 3. Generation Facilities 3.1 Constructing and Operating Generation Facilities Construction of Generation Facilities
in a 50 MW or more net increase in the electric generating capacity available at the busbar of the existing plant; or • major electric transmission line facilities that are designed for immediate or eventual operation at 200 kV or more. Before granting a CPCN, the CPUC must find that present or future public convenience and necessity will require its construction. The CPUC considers: • project need; • the maximum prudent and reasonable cost of the project; • community values; • electric and magnetic field (EMF) issues; • environmental impacts; The next review process is the Permit to Con- struct, which is necessary before construction begins. This review is narrow compared to the CPCN process, only considering project need, EMF exposure, environmental impacts, mitiga- tion measures and project alternatives under CEQA. The third process is for electric distribution lines and other substations. While these projects do not require a CPCN or Permit to Construct, the utility must request input from local authorities on land use matters and obtain any necessary non-discretionary local permits required for con- struction and operation of these projects. • feasible mitigation measures; and • project alternatives under CEQA. Lastly, the project must comply with CEQA, which generally requires California public agen- cies – both state and local – to inform decision- makers and the public about a proposed pro-
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