Federal Energy Regulatory Commission Adopts AAI Proposal to Require Additional Informational Reporting on Mergers and Acquisitions That are Exempt from Regulatory Review

Today, the Federal Energy Regulatory Commission (FERC) issued its final order in RM19-4, Implementation of Amended Section 203(a)(1)(B) of the Federal Power Act. Order No. 855, FERC quoted liberally from AAI’s December 31, 2018 comments, which urged the FERC to monitor small M&A transactions for competitive effects in wholesale power markets, after a law was passed exempting them from review. The Commission took AAI’s advice, noting that AAI and three other intervenors raised a “compelling argument regarding transparency.” FERC agreed that the regulations should include an additional requirement to divulge the identity of all energy affiliates and energy subsidiaries owned by the acquirer of the jurisdictional facilities that are the subject of the transaction. The Final Order reflects this requirement. AAI’s comments highlighted that even small transactions in electricity markets can raise a number of important competitive issues and should be monitored carefully by the Commission.