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Federal Energy Regulatory Commission

Industries Electric General Information Exempt Wholesale Generators (EWG)

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EWGs and the Federal Power Act

The significance of EWG status is restricted almost entirely to matters pertaining to PUHCA 2005. Domestic EWGs are public utilities under section 201(e) of the Federal Power Act (FPA), 16 U.S.C. § 824(e) External Link (2012), and they are subject to all of the FPA requirements that apply to public utilities. In short, the term “exempt” in the designation “exempt wholesale generator” refers to exemptions from PUHCA 2005. In practice, the only instance of particular note where EWG status has important significance outside the context of PUHCA 2005 is section 33.1(c)(8) of the Commission’s regulations, which contains a blanket authorization under FPA section 203(a)(2) that applies to, among other things, acquisitions of securities of EWGs.

In addition, section 214 of the FPA makes a rate or charge received by an EWG unlawful under section 205 of the FPA if the Commission finds that the rate or charge results from any undue preference received by the EWG from an “affiliate” or “associate company,” as defined in PUHCA 2005. 16 U.S.C. § 824m External Link (2012).