Number: 98-419 Title: ELECTRICITY RESTRUCTURING BACKGROUND: THE PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 AND THE ENERGY POLICY ACT OF 1992 Authors: Amy Abel, Environment and Natural Resources Policy Division Abstract: Electric utilities have been subject to comprehensive federal and state economic regulation since enactment of the Public Utilities Holding Company Act of 1935 (PUHCA) and the Federal Power Act. This regulatory framework remained virtually unchanged until 1978. The oil embargoes of the 1970s created concerns about the security of the nation's electricity supply leading to enactment of the Public Utility Regulatory Policies Act of 1978 (PURPA). For the first time, utilities were required to purchase power from outside sources. As the electric utility restructuring debate evolves, policy issues to be addressed may include federal-state jurisdictional roles, stranded cost recovery, industry structure, and non-economic regulatory factors. Pages: 6 Date: Updated May 4, 1998