I believe this was intended for the other Susan Scott...I'm with Nat Gas trading.

Thanks


 -----Original Message-----
From: 	Nicolay, Christi  
Sent:	Monday, April 30, 2001 10:55 AM
To:	Scott, Susan
Subject:	WEST DESKS--FERC authorizes power marketers to purchase from industrials (and more)


---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/30/2001 10:54 AM ---------------------------
   

 	  From:  Christi L Nicolay                           04/27/2001 11:01 AM	
		


To:	Chris Lackey/PDX/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Tim Belden/HOU/ECT@ECT, Don Black/HOU/EES@EES, Jeff Golden/HOU/EES@EES, Marc Pana/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Alan Comnes/PDX/ECT@ECT, Ray Alvarez/NA/Enron@ENRON, Susan J Mara/NA/Enron@ENRON, Steve Walton/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Jeff Brown/NA/Enron@Enron, Sheila Tweed/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, James E Keller/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Ozzie Pagan/Enron@EnronXGate, Leslie Lawner/NA/Enron@Enron, Joy Werner/Corp/Enron@ENRON, Karen A Cordova/HOU/EES@EES, Robert Frank/NA/Enron@Enron, Janet R Dietrich/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron
cc:	 

Subject:	WEST DESKS--FERC authorizes power marketers to purchase from industrials (and more)

On March 14, 01, FERC issued an "Order removing obstacles to increased electric generation and gas supply in the West.."  (Docket No. EL01-47).

	Most significantly, FERC authorizes industrials in WSCC to sell power to licensed power marketers (like EPMI and EES) effective 3/14/01 through 12/31/01.  The industrial does not have to obtain its own power marketer license from FERC (subject to EPMI and EES making filings for the industrials).  (This is similar to the authorization that EPMI and EES requested nationwide earlier this year -- we should hear from FERC on that request by mid-May.)

In addition, FERC authorizes DSM sales at wholesale at market based rates.

Specifics:

Owners of generating facilities located at business locations in the WSCC and used primarily for back-up for self-generation (who will be "public utilities" subject to the Federal Power Act only while they sell at wholesale) can sell power at wholesale from such facilities to non-affiliated entities (like EPMI or EES) without prior notice under section 205 of FPA (would usually require 60 day advance notice filing).  
	 -- Waives certain parts of the filing requirements for the industrial; however, the industrial will still be subject to shortened filing requirements for dispositions of facilities and interlocking positions while they are selling at wholesale.
	-- EPMI and EES will make the FERC quarterly filings on behalf of the industrials for any of these purchases.  Our report must show the names of the industrial; aggregate amount of capacity and/or energy purchased from each seller; and the aggregate compensation paid to each seller.  Accounting/commercial folks for EPMI and EES-- please make sure these purchases are flagged in the accounting system, since the report will be separate from our big quarterly reports.
	-- This does not authorize the retail industrial customer to violate any rules or tariffs of its host utility.  This does not authorize an industrial to resell power it purchases (only can sell what it generates); unless otherwise allowed (or not precluded) by its retail tariff -- must file a rate schedule at FERC for this, but FERC will be receptive to granting waivers and authorizations.
	-- This authorization expires after 12/31/01.
Effective 3/14/01 through 12/31/01, retail customers in WSCC, as permitted by state laws and regulations, and wholesale customers are authorized to reduce consumption for the purpose of reselling their load reduction at wholesale at market-based rates.  These transactions can occur in several ways:  An aggregator can line up retail load to acquire enough negawatts to resell in a manner similar to what aggregators do when they sell power to retail load under retail choice programs.  In addition, wholesale and retail load with contract demand service could resell their contract demands if the value of power is greater than the value of consumption.  Similar quarterly reports would be due by EPMI/EES.
NOTE:  the industrial still has to obtain the interconnection agreement with transmission provider (may need new interconnection facilities, etc.) 
Remember that you still need to get transmission on OASIS when the power is wheeled away from the industrial.

Other initiatives in the order:

Utilities are encouraged to make DSM arrangements with wholesale customers.  FERC waives the prior notice requirement for amended contracts that are required to be filed at FERC.
Clarifies that DSM should be treated consistenly with all other types of incremental and out-of-pocket costs for utilities.
Reminds transmission providers to keep ATCs current, including CBM and TRM.
Provides incentive rates for new transmission projects that can be in service by July 1 (and to a lesser extent -- by November 1 of 01 and 02).
Considers "rolled in" rates for generation interconnection (rather than direct assignment that we have now.)
Extends temporary waivers through 12/31/01 of operating and efficiency standards for QFs.  Allows QF to sell output above historical supply though a negotiated bilateral agreement at market based rates, if sold in California and the WSCC.
FERC will review interconnection issues that impede generation from reaching load (ie, if a utility does not act within time limits on interconnection requests, etc.)
Provides for increased staff and quicker gas pipeline additions review.

Please let me know if you would like the order.  Ray Alvarez (202-466-9170) and I (713-853-7007) can assist you with this.  Thanks.





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