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Practical Consequences Arising from FERC's Secondary Electric Transmission Market



In September 2010, the Federal Energy Regulatory Commission permanently lifted the price cap for transmission customers reassigning electric transmission capacity. While intended to foster competition in the secondary transmission markets, the practical effects of FERC's action remain to be seen, particularly because resellers remain liable to transmission providers even after completion of the reassignment, and because the rules governing the transfer of rollover rights have not yet been established.

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