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FERC has strict regulations for power companies that sell electricity at market-based prices. These regulations are meant to protect consumers against monopolies and deceitful practices. In order for power companies to sell electricity, they have to pass a series of tests to ensure that they comply with reliability standards, aren’t manipulating the market, and don’t have too much vertical or horizontal market power. These rules are meant to protect you against price hikes, fraud, and electricity shortages.
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