Staff Reports Presented To The Sunset Task Force On Utility Regulatory Reform Checks On The Regulatory Process

GAO reviewed the need to continue portions of the Public Utility Regulatory Policies Act which address retail rate and regulatory policies for electric utilities. The Act was established to encourage conservation of energy supplied by electric utilities, efficiency in the use of facilities and resources by these utilities, and equitable rates to electricity consumers. It requires each State regulatory authority, in the case of every electric utility for which it has ratemaking authority, and nonregulated electric utilities to consider and determine whether adoption or implementation of 11 ratemaking and regulatory standards is appropriate. They are required to report to the Department of Energy (DOE), the President, and Congress on their actions and to make recommendations on additional Federal actions needed to achieve the purposes of the Act. The Act also requires utilities to file biennially with the Federal Energy Regulatory Commission (FERC) and their respective State regulatory authorities extensive cost-of-service data.