Earlier this year, FERC issued a notice of inquiry seeking comment on whether it should revise its horizontal market power test for mergers and other transactions under Section 203 of the Federal Power Act. FERC's current horizontal market power test derives from merger guidelines issued by the Department of Justice ("DOJ") and Federal Trade Commission. This past June, the DOJ issued an updated version of its policy guide to merger remedies, reflecting the DOJ's new approach to conduct remedies. Specifically, the updated guidelines depart from the DOJ's prior preference for structural remedies, and explicitly recognize that conduct remedies can be an effective method for dealing with competition concerns raised by certain mergers. In light of its recent NOI, FERC will likely take into account the DOJ's updated policy guide on merger remedies in determining whether to revise its own merger policies. For a summary of the DOJ's update policy guide on merger remedies, click here.