The Federal Energy Regulatory Commission’s (FERC) delivered price test (DPT) for market-based rates or merger reviews has been in practice since 1996, but many of the details of the methodology have been open to interpretation. In a pair of recent orders, the commission clearly articulated what it is looking for in a DPT analysis. In this article published in Law360, David Hunger and Edo Macan discuss seven key points FERC clarified in the DPT methodology.
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Dr. Wara is the Director of the Climate and Energy Policy Program at the Stanford Woods Institute for the Environment and the Senior Director of Policy and...