FERC Rehearing Order Limits Corporate Families to $50 Million Unsecured Credit in RTOs

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February 18, 2011  

FERC granted limited rehearing on its October RTO credit reforms order, eliminating the prior provision allowing corporate families to use up to $100 million in unsecured credit, while limiting other stakeholders to $50 million.

"We agree that the cumulative danger posed by a $100 million corporate family cap on the use of unsecured credit poses an unacceptable risk to the organized wholesale electric markets ... The Commission therefore grants rehearing and finds that the limit on the use of unsecured credit should be no more than $50 million per entity, including the corporate family to which an entity belongs," FERC said.

Furthermore, FERC held that, "[w]hile a corporate family may choose to have a single member company participate in an RTO/ISO's market, or instead opt to have more than one do so, in either case, the single entity or multiple entities together will have a cap of no more than $50 million."

FERC denied rehearing on all other issues related to its RTO credit reforms order (see coverage of original order in our 10/22 story)

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