Ratemaking Treatment of the Cost of Emissions Allowances in Coordination Rates; Order No. 579

Zusammenfassung

On December 15, 1994, the Commission issued a Policy Statement and Interim Rule Regarding Ratemaking Treatment of the Cost of Emissions Allowances in Coordination Rates. In the Policy Statement, codified in Sec. 2.25, the Commission set forth the elements of what generally constitutes appropriate ratemaking treatment of sulfur dioxide emissions allowances in coordination transactions under the Federal Power Act. The Interim Rule, codified in Sec. 35.23, implemented the filing guidelines set forth in the Policy Statement. This order is issued in response to comments on the Interim rule (Sec. 35.23). It clarifies the Policy Statement (Sec. 2.25) in certain respects and adopts the Interim Rule, without modification, as a Final Rule.