The Energy Policy Act strengthened frameworks for competitive wholesale markets. It allowed the use of eminent domain for acquiring electric transmission rights-of-way in areas designated as congested by the Secretary of Energy. It repealed a PURPA requirement that had required utilities to purchase power from qualifying facilities and small power producers at a rate based on the utilities’ avoided cost, if there were competitive electricity markets available. Finally, FERC is tasked to prohibit any price manipulation in wholesale transactions, in response to the Western energy crisis which revealed market deficiencies.
