Government Intervention and Energy Services

Paper Summary:

The conversion of energy into power has progressed to this day as large corporations comply with governmental regulations that seek to ensure that enough electricity is provided to meet customer demand at a fair price. Energy service and delivery companies have provided shareholder growth through acquisitions and mergers and by cutting costs and integrating systems. This paper shows that the federal government intervenes to protect customers and investors through several commissions and agencies, primarily through the Security and Exchange Commission (SEC) and the Federal Energy Regulatory Commission (FERC) under the Public Utility Holding Company Act of 1935 and the more recent Sarbanes-Oxley Act of 2002. The states' Public Service Commissions regulate and monitor utility prices, service quantity and quality and can prosecute firms guilty of price discrimination. The paper shows that local governments are mainly concerned with the taking of property through eminent domain, pollution control and regional resources. Although government continues in the direction of deregulating the industry, the regulatory reporting requirements have created numerous jobs in the areas of accounting, reporting, and compliance. The paper explains that computer systems, applications, and products in data processing (SAP) help to maximize resources and assist greatly in data management and government reporting compliance.

Outline
Abstract
Introduction
Brief History of the Utilities Industry
Service and Delivery Territorial Boundaries
Welcome to Energy East
Energy East's Territory
A recent report on Energy East
Government Intervention in the Energy Services & Delivery Industry
Brief History
Federal Government Intervention
The Federal Energy and Regulatory Commission (FERC)
The Securities and Exchange Commission (SEC)
Regulations Regarding Stocks, Bonds and Derivatives
State & Local Government Intervention
Key Government Legislation Affecting the Industry
Public Holding Company Act of 1935
Sarbanes-Oxley Act
Generally Accepted Accounting Principles (GAAP) and Government Reporting Requirements
Establishing and Maintaining Effective Reporting Systems
Systems, Applications, Products in Data Processing (SAP)
Communicating with SEC Officials
Conclusion
Career Opportunities
References

From the Paper:

"Federal, state and regional governments collaborate in controlling electricity prices and the supply of electricity because a price or demand increase in one regional area affects electricity costs and supply of nearby regional areas. One region's energy crisis can have a spill over effect into other states and may spread across the country. This became apparent in California when there was not enough supply to meet the demand during California's deregulation of public utilities as California turned to neighboring regional areas to purchase additional power. When other states refused to sell electricity to California in their crisis because of risk factors, a government emergency order saved them by requiring out-of-state companies to sell power to that region (Bonsor, 2001). Power outages can spread as they too can have spill over effects onto other regions. This happened in the summer of 2003 when New York City up through Canada experienced a massive black out."

More papers on Government Intervention and Energy Services:

• Research Paper # 63502 : "The Energy Service and Delivery Industry"
• Essay # 90812 : "Government Intervention and Oil Prices"
• Essay # 32635 : "General Model Of Government Intervention"

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