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The Energy Regulatory Law Practice is a specialized field of administrative law that focuses on representing energy companies and other stakeholders before government agencies that regulate the energy sector. This practice is essential for any entity involved in the generation, transmission, or distribution of electricity and natural gas. It involves guiding clients through the complex rules and procedures for rate-setting or tariff applications, where utility companies seek approval for the prices they charge consumers. Practitioners also handle the permitting and licensing process for the construction of new energy infrastructure, such as power plants and transmission lines. A significant part of the practice involves ensuring clients’ ongoing compliance with all market rules and regulatory standards, and litigating disputes before regulatory commissions and in appellate courts.
Energy regulation is the body of laws and administrative rules that a government uses to control and oversee the energy industry. Because energy is a critical public utility, it is typically a heavily regulated sector to ensure that service is reliable, safe, and provided to consumers at fair and reasonable prices. This legal framework governs the entire industry, from the operation of power plants and the electricity grid to the sale of energy to end-users, balancing the needs of producers with the public interest.
An energy regulatory commission is an independent government agency established by law with the specific mandate to oversee and enforce the rules of the energy sector. These commissions are quasi-judicial bodies that have the authority to set the rates that utility companies can charge, establish and enforce market rules to ensure fair competition, issue licenses for the construction and operation of energy facilities, and resolve disputes between market participants and with consumers.
The main role of an energy regulator is to balance the often-competing interests of energy companies, consumers, and the public. The regulator is responsible for ensuring that consumers have access to safe and reliable energy at just and reasonable rates. At the same time, it must provide utility companies with the opportunity to earn a sufficient financial return on their investments to be able to maintain, improve, and expand the critical energy infrastructure that serves the public.
Consumer electricity rates are legally determined through a formal proceeding known as a rate case, which takes place before an energy regulatory commission. The utility company initiates the process by filing a detailed application to justify its proposed rates, based on its costs to provide service plus a reasonable rate of return on its capital investments. The regulator then conducts a thorough review, often including public hearings where consumer groups can intervene, before issuing a final decision that approves a just and reasonable tariff.
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