Philip Killeen

Document Type

Journal Article

Publication Date



Part II of the Federal Power Act (FPA) requires that all prices set for the sale of electricity affecting interstate commerce between electrical utilities be "just and reasonable." Pursuant to this requirement, the FPA authorizes the Federal Energy Regulatory Commission (FERC) to suspend such electricity sales prices upon finding that they unduly disadvantage or discriminate between locations or types of power plants. In assigning this limited jurisdiction to the federal government, and by explicitly reserving to the states the exclusive jurisdiction over the mix of power plants supplying electricity demand, the FPA mandates a cooperative federalism model of electricity sector regulation.