LAW2503

The supply of a safe, reliable, low-cost and clean energy for the United States is a key determinant of current and future prosperity. It is also the most important element of both state and federal decarbonization efforts. Electric utilities are also among the most heavily regulated of large firms. This statutory and regulatory framework is composed of a complex patchwork of overlapping state and federal rules that is constantly evolving to meet emerging challenges. In this course, students will acquire a basic understanding of the law of rate-based regulation of utilities. We will then examine the history of natural gas pipeline regulation in the United States, concluding with the introduction of market competition into US natural gas markets and the advent of shale gas. Next, we will cover the basics of the electricity system, including consumer demand, grid operations, power plant technologies and electricity sector economics. We will then revisit cost of service rate regulation as it has been applied in the electricity context. Next, we will examine reform of both rate-regulated and wholesale market-based structures, focusing on various attempts to introduce market competition into specific segments of the industry. Finally, students will examine various approaches to subsidization of utility scale renewable energy and the growth and compensation of distributed energy resources. Throughout, the course will focus on the sometimes cooperative, sometimes competing, but ever evolving federal and state roles in regulating the supply of electric power as a unique example of cooperative federalism. Students will write two 1000-word response papers during the quarter in addition to taking a final exam (composed of two 1000-word essays). Elements used in grading: Class participation (20%), written assignments (40%), and final exam (40%).