CFR > Title 18 - Conservation of Power and Water Resources > CHAPTER I—FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY > SUBCHAPTER B—REGULATIONS UNDER THE FEDERAL POWER ACT (parts 4 to 50) > PART 35—FILING OF RATE SCHEDULES AND TARIFFS > SUBPART H—Wholesale Sales of Electric Energy, Capacity and Ancillary Services at Market-Based Rates (§35.36 to §35.42) > 35.38—Mitigation.

35.38—Mitigation.

(a) A Seller that has been found to have market power in generation or that is presumed to have horizontal market power by virtue of failing or foregoing the horizontal market power screens, as described in § 35.37(c), may adopt the default mitigation detailed in paragraph (b) of this section or may propose mitigation tailored to its own particular circumstances to eliminate its ability to exercise market power. Mitigation will apply only to the market(s) in which the Seller is found, or presumed, to have market power.
(b) Default mitigation consists of three distinct products:
(1) Sales of power of one week or less priced at the Seller's incremental cost plus a 10 percent adder;
(2) Sales of power of more than one week but less than one year priced at no higher than a cost-based ceiling reflecting the costs of the unit(s) expected to provide the service; and
(3) New contracts filed for review under section 205 of the Federal Power Act for sales of power for one year or more priced at a rate not to exceed embedded cost of service.