Electricity Restructuring and the Constitutionality of Retail Reciprocity Requirements

Description:

Retail reciprocity requirements have been included in the electricity restructuring legislation of at least four states. These requirements mandate generally that out-of-state utilities which operate in a state “closed” to retail competition cannot market power to retail consumers in the “open” state. Because state reciprocity requirements enacted without congressional authorization are probably unconstitutional under the Commerce Clause of the U.S. Constitution, Congress would have to include a reciprocity provision in federal electricity restructuring legislation if it wants to support the view that such a provision will increase competition. This report reviews the treatment of state reciprocity requirements by the U.S. Supreme Court and discusses Congress’ power under the Commerce Clause.

Creator(s):
Creation Date: March 9, 2000
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
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Place of Publication: Washington D.C., USA
Date(s):
  • Creation: March 9, 2000
Description:

Retail reciprocity requirements have been included in the electricity restructuring legislation of at least four states. These requirements mandate generally that out-of-state utilities which operate in a state “closed” to retail competition cannot market power to retail consumers in the “open” state. Because state reciprocity requirements enacted without congressional authorization are probably unconstitutional under the Commerce Clause of the U.S. Constitution, Congress would have to include a reciprocity provision in federal electricity restructuring legislation if it wants to support the view that such a provision will increase competition. This report reviews the treatment of state reciprocity requirements by the U.S. Supreme Court and discusses Congress’ power under the Commerce Clause.

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5 pages.

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Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
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Resource Type: Report
Format: Text