fw portland general electric order rejecting tariff amendments ferc rejected request pge modify code conduct could buy enrononline basically ferc believe buying thru enrononline guarantee consumers oregon would harmed ferc found example assurance posted prices enrononline represent prevailing market prices applicants contend since pge transact epmi via enrononline posted price affiliate abuse certain however posted price necessarily represents market price surface enron online may bear resemblance index auction posted prices product may result competitive market multiple buyers sellers fact sales posted prices represent epmi willing sell purchases posted prices represent epmi willing buy ferc left open idea pge could file fix affiliate abuse soon hear anything else let know jim original message shapiro richard sent friday july 20 2001 4 14 pm steffes james subject fw portland general electric order rejecting tariff amendments original message novosel sarah sent friday july 20 2001 10 42 robertson linda shapiro richard steffes james subject portland general electric order rejecting tariff amendments forwarded sarah novosel corp enron 07 20 2001 11 39 emily harris 07 20 2001 11 14 cc andrea settanni subject portland general electric order rejecting tariff amendments 96 ferc 61 093 united states america federal energy regulatory commission commissioners curt h bert jr chairman william l massey linda breathitt pat wood iii nora mead brownell portland general electric company docket erol 2097 000 enron power marketing inc docket erol 2103 000 order rejecting tariff amendments without prejudice issued july 20 2001 order reject without prejudice proposed amendments enron power marketing inc epmi portland general electric pge respective market based rate tariffs would allow make inter affiliate sales using enrononline trading platform background may 22 2001 separate filings affiliates pge docket erol 2097 000 epmi docket erol 2103 000 collectively applicants filed amend respective market based rate schedules allow inter affiliate sales enrononline trading platform prohibit communication among affiliates regarding contents prices posted enrononline times pge making trades 1 enrononline amendment supplant existing provisions pge epmi currently effective tariffs allow inter affiliate sales subject conditions commission generally imposes inter affiliate sales captive customers e g allowing public utility sell affiliated power marketer rate lower rate charges non affiliates requiring simultaneous offers non affiliates requiring use relevant established index rather pge epmi propose amend respective tariffs add provision make 1 enrononline system administered enron networks enron corp subsidiary enrononline free internet based transaction system allows epmi customers view real time prices epmi traders transact instantly online enrononline epmi application rather enrononline trading platform used tool epmi buying selling power third parties docket nos erol 2097 000 2 erol 2103 000 inter affiliate sales via enrononline restrictions different place state still prevent affiliate abuse applicants state commission requirements become outdated due recent developments electronic commerce particular commission requirement pge post website notice potential purchase sale epmi prior pge entering transaction epmi prohibits pge using enrononline since enrononline offers instantaneous transactions provide waiting period consummating 2 transaction according applicants deprives pge ability buy sell power perhaps largest marketer 3 region detriment pge ratepayers ii notice filing interventions protests notices filings published federal register 66 fed reg 29 939 2001 docket erol 2097 000 66 fed reg 30 180 2001 docket erol 2103 000 motions intervene protests due june 12 2001 none filed iii discussion commission allows power marketers public utility affiliates sell one another market based rates assured possibility affiliate abuse commission explained affiliate abuse occur traditional public utility captive customers sells power market prices purchases power market prices affiliate without captive customers power marketer affiliate one way commission sought prevent type cross subsidization captive customers require pricing inter affiliate 4 sales established relevant market price index another way assurance affiliates transacting prevailing market price adopt various conditions previously established commission prevent 5 affiliate abuse 2 epmi application 3 pge application 4 3 epmi application 3 pge application 4 4 see e g dpl energy inc 90 ferc 61 200 2000 accord first energy trading services inc 88 ferc 61 067 61 156 1999 5 e g gpu advanced resources inc 81 ferc 61 335 continued docket nos erol 2097 000 3 erol 2103 000 applicants request commission permit use enrononline make inter affiliate sales subject following restrictions contend provide sufficient protection affiliate abuse pge buying epmi using enrononline required take transaction price posted generally applicable particular 6 location without attempting negotiate adjustment 7 addition pge prohibited submitting limit orders engaging type transaction identity counter party revealed epmi prior transaction finalized applicants also propose amend respective codes conduct preclude communication regarding prices posted enrononline applicants contend restrictions ensure affiliate abuse occurs since pge able transact epmi 5 continued 62 539 1997 gpu detroit edison company 80 ferc 61 348 62 197 98 1997 detroit edison gpu commission allowed sales power marketer affiliated traditional public utility rate higher lowest rate public utility paid non affiliates certain standard supplier agreements accord first energy trading utility simultaneously offer electronic bulletin board sell non affiliates rate offered affiliate prices charged affiliate simultaneously posted electronic bulletin board accord jersey central power commonwealth edison co 85 ferc 61 288 62 176 77 1998 6 epmi application 4 pge application 5 7 case limit order enrononline epmi would know identity customer requesting price higher lower currently available applications 3 applicants define limit order common understanding unlike market order instructs broker transact immediately whatever price currently available marketplace limit order instructs broker fill order certain conditions met generally limit order may either day order case expires market closes unfilled good canceled case limit order lasts executed canceled docket nos erol 2097 000 4 erol 2103 000 posted price price offered market participants transactions epmi knows pge counter party transaction finalized thus applicants contend pge unable negotiate special terms epmi enrononline epmi discretion take actions favor pge applicants offer procedures performed computer left discretion affiliate pge addition enrononline price posted electronically available market participants applicants state pge customers opportunity transact epmi enrononline terms conditions available pge applicants failed demonstrate proposed restrictions provide protections afforded commission affiliate abuse requirements conditions e g protection pge buying high selling low 8 transactions affiliate epmi thrust applicants argument commission affiliate abuse concerns satisfied using enrononline public medium selling power affiliates disagree perhaps faster easier use phone calls faxes letters internet based platform another medium trade speed ease use dictate commission affiliate abuse concerns satisfied example assurance posted prices enrononline 9 represent prevailing market prices applicants contend since pge transact epmi via enrononline posted price affiliate abuse certain however posted price necessarily represents market price surface enron online may bear resemblance index auction posted prices product may result competitive market multiple buyers sellers fact sales posted prices represent epmi willing sell purchases posted prices represent epmi 10 willing buy transactions media enrononline including exchanges epmi might 8 see supra notes 4 5 accompanying text citing cases discuss commission underlying concerns affiliate power sales 9 see supra note 4 accompanying text 10 transaction enrononline involve epmi participant sales epmi seller purchases epmi buyer docket nos erol 2097 000 5 erol 2103 000 11 willing sell lower prices buy higher prices moreover applicants provide information product prices posted epmi determined whether would restrictions products pge could trade via enrononline even whether similar non affiliated internet based venues pge electronically trade products attain similar benefits failed convince us affiliates transacting prevailing market price via enrononline turn whether applicants met conditions established commission prevent affiliate abuse regarding transactions epmi may purchasing pge enrononline nothing applicants proposed restrictions would require pge simultaneously offer sell non affiliates rate offered affiliate commission requires respect power offered affiliate pge make offer unaffiliated entities time electronic bulletin board unclear whether pge make offer non affiliates applicants also offer protection pge prohibited submitting limit orders would prevent epmi knowing pge counter party transaction would prevent epmi selling power pge market prices commission assured applicants proposal transactions pge epmi conducted via enrononline occur manner consistent commission expectations regarding transparent reasonable prices inter affiliate power sales transactions example provision proposed amendments regarding unaffiliated customers interested parties would monitor inter affiliate transactions reasons reject proposed amendments without prejudice applicants revising proposal address commission concerns incorporating appropriate restrictions protect affiliate abuse 11 likewise pge might willing buy lower prices sell higher prices docket nos erol 2097 000 6 erol 2103 000 commission orders applicants proposed tariff amendments hereby rejected without prejudice discussed body order commission e l david p boergers secretary 2097 _ txt txt