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FERC Scrutinizes Rates Charged by APS, Fortis

February 24, 2016 By Cheryl Kaften

Late on February 22, Bloomberg Business broke the news that Arizona Public Service and units of Fortis, a regulated utility holding company, are being investigated (Docket No. EL16-36- 000) by the Federal Energy Regulatory Commission (FERC) to consider “the justness and reasonableness … [of their] market-based rates.”

In opening the probes, the commission said the utilities “had failed to prove that they weren’t capable of unfairly raising prices using their market power in the Tucson, Arizona, region,” Bloomberg said.

FERC ordered the companies to clarify within 60 days why it should not revoke their market-based rate authority, propose how they can mitigate their ability to exercise market power, or say they’ll use cost-based rates instead of market-based ones.

The investigations come just two weeks after the commission said it was looking into the rates charged by Talen Energy for power in Pennsylvania.

The units of Newfoundland, Canada-based Fortis subject to investigation are Central Hudson Gas & Electric, Tucson Electric Power, UNS Electric, and UniSource Energy Development.

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