Electricity Restructuring and the Constitutionality of Retail Reciprocity Requirements

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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. … continued below

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5 pages.

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Shimabukuro, Jon O. March 9, 2000.

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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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Congressional Research Service Reports

The Congressional Research Service (CRS) is the public policy research arm of Congress. This legislative branch agency works exclusively for Members of Congress, their committees and their staff. This collection includes CRS reports from the mid-1960's through 2018—covering a variety of topics from agriculture to foreign policy to welfare.

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  • March 9, 2000

Added to The UNT Digital Library

  • June 11, 2005, 7:45 a.m.

Description Last Updated

  • Feb. 15, 2017, 7:46 p.m.

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Shimabukuro, Jon O. Electricity Restructuring and the Constitutionality of Retail Reciprocity Requirements, report, March 9, 2000; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metacrs1181/: accessed March 28, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.

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