FERC pushes limits on reliability; critics oppose new 'activism'.(Federal Energy Regulatory Commission)

WASHINGTON, DC -- The Federal Energy Regulatory Commission (FERC) appears once again to be on a path that may ruffle some feathers. Critics of the agency blame it for not acting swiftly and decisively in the California energy crisis. Others say the agency's standard market design (SMD) would usurp states' rights. Now utilities are worried that the agency is becoming too activist.

Reacting to the stalled energy bill, the passage of which is uncertain, and regardless of utility opposition, FERC on December 17 directed staff to develop an order that will require transmission system operators to report violations of the industry's power-grid reliability standards. The …