Industries Open Access Transmission Tariff (OATT) Reform
On April 24, 1996 the Commission issued Order No. 888 which required public utilities to provide open access transmission service on a comparable basis to the transmission service they provide themselves. Specifically Order No. 888:
- Required all public utilities that own, control or operate facilities used for transmitting electric energy in interstate commerce to file open access non-discriminatory transmission tariffs that contain minimum terms and conditions of non-discriminatory service, and
- Permits public utilities and transmitting utilities to seek recovery of legitimate, prudent and verifiable stranded costs associated with providing open access and Federal Power Act section 211 transmission services.
The Commission's goal was to remove impediments to competition in the wholesale bulk power marketplace and to bring more efficient, lower cost power to the Nation's electricity consumers.
In a companion order the Commission issued Order No. 889 at the same time which established rules governing Open Access Same-time Information System (OASIS) and prescribing standards of conduct.
On September 16, 2005, the Commission sought comment thru a Notice of Inquiry (NOI) regarding whether the pro forma open access transmission tariff (OATT) adopted in Order No. 888 needs reform in light of the changes in the electric utility industry. On May 19, 2006, in response to more than 4,000 pages of comments in response to the NOI the Commission issues a Notice of Proposed Rulemaking (NOPR) proposing reforms to the pro forma OATT in the areas of calculation of available transfer capability, transmission planning, and the terms and conditions of open access transmission service.
On February 16, 2007, the Commission issued Order No. 890, adopted certain of the reforms proposed in the NOPR. On December 27, 2007, the Commission issued Order No. 890-A , granting in part and denying in part rehearing and clarification of Order No. 890 .