SENATE RESOLUTION No. 59
STATE OF NEW JERSEY
INTRODUCED JULY 25, 1996
By Senators SINGER, McGREEVEY and Adler
A Senate Resolution establishing a Senate Special Study Committee on the Federal Energy Regulatory Commission's Order Nos. 888 and 889 of 1996.
Whereas, On April 24, 1996, the Federal Energy Regulatory Commission ("FERC") issued Order No. 888, which will require FERC-regulated electric public utilities that own, control or operate facilities used for transmitting electric power in interstate commerce, to file open access tariffs, which will allow access to transmission services that these public utilities currently use themselves, to other wholesale suppliers and purchasers of electric power under non-discriminatory terms and conditions; and
Whereas, FERC Order No. 888 will also permit these public utilities to seek recovery of certain legitimate, prudent and verifiable stranded costs associated with providing open access if these costs were incurred to serve their wholesale electric power customers, since these costs would then become unrecovered if their customers use open access to move to another electric power supplier; and
Whereas, FERC Order No. 889 also issued on April 24, 1996, requires these public utilities to obtain information about their transmission systems for their own wholesale electric power transactions, such as available capacity, in the same way their competitors do--via the creation of, or participation in, an "Open Access Same-time Information System" (OASIS) where this information would be made available on the "Internet;" and
Whereas, FERC Order No. 889, will also require these public utilities to implement standards of conduct to functionally separate their wholesale electric power marketing and transmission operations; and
Whereas, FERC Order Nos. 888 and 889, which will go into effect on July 9, 1996, were proposed with the goal of removing impediments to competition in the wholesale bulk electric power marketplace and to bring more efficient, lower cost power to the nation's electricity consumers; and
Whereas, On May 23, 1996, the New Jersey Board of Public Utilities issued a status report on Phase II of the State's Energy Master Plan, which included a recommendation that full wholesale competition in the electric power industry should be implemented in this State by January 1997; and
Whereas, It is incumbent on the Legislature to study the requirements of FERC Order Nos. 888 and 889, to consider their implications for the electric power providers and consumers in the State of New Jersey, and to study the possible areas in which State action or regulation will or could be called for; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. There is hereby established the Senate Special Study Committee on the Federal Energy Regulatory Commission's Order Nos. 888 and 889 of 1996. The committee shall consist of five members of the Senate, with three members of the committee to be appointed by the President of the Senate and two members to be appointed by the President of the Senate upon the recommendation of the Senate Minority Leader. The committee may appoint a secretary who need not be a member of the committee. The Senate President shall designate one of the members to serve as chairman.
2. It shall be the duty of the committee to study the issues raised by Order Nos. 888 and 889, to consider the implications of these orders for the electric power industry in the State of New Jersey, and that industry's commercial, industrial and residential customers, and to study the possible areas in which State action or regulation will or could be called for. The primary function of the committee shall be to serve as a resource for informing and educating the Legislature as to the subject matter within the scope of the committee's study.
3. a. The committee may meet and hold hearings at the places it designates during the sessions or recesses of the Legislature, and shall be entitled to call to its assistance and avail itself of the services of officials and employees of any State, county, or municipal department, board, bureau, commission, or agency as it may require.
b. The committee shall further be entitled to employ stenographic and clerical assistance and incur traveling and other miscellaneous expenses as it may deem necessary in order to perform its duties, within the limits of funds appropriated or otherwise made available to it for its purposes.
4. The committee shall report its findings in a report to the President of the Senate as soon as practicable upon the completion of its work.
STATEMENT
This Senate resolution establishes the Senate Special Study Committee on the Federal Energy Regulatory Commission's ("FERC") Order Nos. 888 and 889 of 1996. The committee is to consist of five members of the Senate, three of whom are to be appointed by the President of the Senate and two of whom are to be appointed by the Senate President upon the recommendation of the Senate Minority Leader.
It is the duty of the committee to study the issues raised by Order Nos. 888 and 889, to consider the implications of these orders for the electric power industry in the State of New Jersey, and that industry's commercial, industrial and residential customers, and to study possible areas in which State action or regulation will or could be called for. The primary function of the committee will be to serve as a resource for informing and educating the Legislature on issues pertaining to these orders. The resolution does not provide for the committee to make any recommendations concerning possible legislation.
The committee is to report its findings to the President of the Senate as soon as practicable upon the completion of its work.
Creates Senate Special Study Committee on the Federal Energy Regulatory Commission's Order Nos. 888 and 889 of 1996.