Energy
Dictionary

 


FERC Order 888, FERC Order 889

These are the two landmark orders made in 1996 by the US Federal Energy Regulatory Commission which played key roles in opening the US energy market to competition.

Order 888 mandated the unbundling of electrical services and the separation of marketing functions for these newly-disaggregated services, required utilities to provide open access to their energy rate schedules (tariffs), and gave existing utilities who may have made substantial investments based on older regulations the right to recover their stranded costs from energy customers.

One of the most important points in Order 888 was the requirement that owners of transmission facilities to make transmission services available on the open market. Soon afterward, Order 889 set standards regarding information that utilities must make available to the marketplace and established OASIS, a bulletin board system for sharing this information. OASIS allows energy customers on the wholesale market to schedule and reserve capacity on the US' regional energy grids to insure that energy can be delivered to customers without competitive interference. FERC order 889 prohibits utilities from sharing market information in any way that prevents access to this information by potential competitors, and requires all such information to be posted on OASIS.

See also:

wholesale, Federal Energy Regulatory Commission, transmission, OASIS, unbundling, stranded costs, deregulation, tariff