FERC Delivered Price Test and Other Market Power Analyses in Wholesale Electric Markets

The Federal Energy Regulatory Commission (FERC) requires that entities submit market power analyses when proposing a merger or acquisition or applying for authorization to make wholesale sales of electricity at market-based rates. These competitive analyses often include a delivered price test (DPT) analysis that assesses the wholesale power market impact of proposed mergers and acquisitions and evaluates the ability of individual market competitors to exercise market power. 

Analysis Group experts, including Principal Eric Korman and Vice Presidents Joseph Cavicchi and Megan Accordino, have been extensively involved in performing DPT analyses, submitting supporting affidavits, and performing other market power analyses on behalf of clients seeking approval for a merger or acquisition transaction or seeking to obtain or renew market-based rate authorization. 

Analysis Group experts have testified in these matters on behalf of many clients throughout the country, including Algonquin Power & Utilities, FirstEnergy, Idaho Power, MidAmerican Energy, Minnesota Power, New Brunswick Energy Marketing, NV Energy, PacifiCorp, PPL Electric Utilities, Southern Company, Talen Energy, UGI Utilities, and many individual independent power producers. Through these efforts, as well as those involving other market competitiveness studies, Analysis Group has acquired extensive knowledge of wholesale electric market conditions throughout the country, along with the detailed data necessary to perform the analyses required by FERC in both the merger/acquisition and market-based rate contexts.