When FERC approves mergers conditioned on market power mitigation measures, independent monitoring and reporting on the companies' compliance with such conditions is typically required.
Potomac Economics has performed the independent monitoring function associated with a number of utility mergers. The scope of services can involve a range of tasks, including the monitoring of:
- Transmission upgrades;
- Generation divestitures;
- Transmission capacity set asides; and
- Short-term cost-based power sales.
In these engagements, Potomac Economics generally publishes quarterly reports to document companies’ compliance with the FERC-mandated mitigation measures.