[Federal Register: January 3, 2006 (Volume 71, Number 1)]
[Notices]
[Page 115-116]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ja06-76]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
Order on Intent To Revoke Market-Based Rate Authority
Issued December 22, 2005.
Before Commissioners: Joseph T. Kelliher, Chairman; Nora Mead
Brownell, and Suedeen G. Kelly
In the matter of: ER02-2001-004, ER04-0292-000, ER04-0646-000,
ER02-0388-000, ER03-0827-000, ER98-4301-000, ER02-1324-000, ER03-
0182-000, ER03-0261-000, Electric Quarterly Reports, Bravo Energy
Resources, LLC, Core Equities, Inc., HC Power Marketing, Maxim
Energy Partners, LLC, Mountainview Power Company, Mt. Carmel Cogen,
Inc., Phoenix Energy Associates, L.L.C., USP&G (Pennsylvania), Ltd.
1. Section 205 of the Federal Power Act (FPA), 16 U.S.C. 824d
(2000), and 18 CFR part 35 (2005), require, among other things, that
all rates, terms and conditions of jurisdictional services be filed
with the Commission. In Order No. 2001, which established revised
public utility filing requirements for rates, terms and conditions of
jurisdictional services, the Commission required public utilities,
including power marketers, to file, among other things, Electric
Quarterly Reports summarizing the contractual terms and conditions in
their agreements for all jurisdictional services (including market-
based power sales, cost-based power sales, and transmission service)
and transaction information (including rates) for short-term and long-
term power sales during the most recent calendar quarter.\1\
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\1\ Revised Public Utility Filing Requirements, Order No. 2001,
67 Fed. Reg. 31043, FERC Stats. & Regs. ] 31,127 (April 25, 2002),
reh'g denied, Order No. 2001-A, 100 FERC ] 61,074, reconsideration
and clarification denied, Order No. 2001-B, 100 FERC ] 61,342, order
directing filings, Order No. 2001-C, 101 FERC ] 61,314 (2002).
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2. Commission staff review of the Electric Quarterly Report
submittals has revealed that a number of public utilities that
previously had been granted authority to sell power at market-based
rates have failed to file Electric Quarterly Reports in 2005.
Accordingly, this order notifies those public utilities that their
market-based rate authorizations will be revoked unless they comply
with the Commission's requirements.
3. In Order No. 2001, the Commission stated that,
[i]f a public utility fails to file a[n] Electric Quarterly
Report (without an appropriate request for extension), or fails to
report an agreement in a report, that public utility may forfeit its
market-based rate authority and may be required to file a new
application for market-based rate authority if it wishes to resume
making sales at market-based rates.\2\
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\2\ Order No. 2001, at P 222.
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4. The Commission further stated that,
[o]nce this rule becomes effective, the requirement to comply
with this rule will supersede the conditions in public utilities'
market-based rate authorizations, and failure to comply with the
requirements of this rule will subject public utilities to the same
consequences they would face for not satisfying the conditions in
their rate authorizations, including possible revocation of their
authority to make wholesale power sales at market-based rates.\3\
\3\ Id. at P 223.
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5. Pursuant to these requirements, the Commission has revoked or
withdrawn the market-based rate tariffs of several market-based rate
sellers that failed to submit their Electric Quarterly Report.\4\
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\4\ See Intent to Revoke Market-Based Rate Authority, 107 FERC ]
61,310 (2004); Notice of the Revocation of Market-Based Rate
Tariffs, et al., 69 Fed. Reg. 57,679 (September 27, 2004); Intent to
Withdraw Market-Based Rate Authority, 104 FERC ] 61,139 (2003); and
Order on Market-Based Rates, 105 FERC ] 61,219 (2003).
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6. Commission staff review of the Electric Quarterly Report
submittals has identified a number of public utilities that previously
had been granted authority to sell power at market-based rates that
have failed to file Electric Quarterly Reports. Commission staff has
made a concerted effort to contact the non-filing utilities listed in
the caption to remind them of their regulatory obligations. None of the
public utilities listed in the caption of this order has met those
obligations.\5\
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\5\ According to the Commission's records, the companies subject
to this order last filed their Electric Quarterly Reports in the
quarters and years shown below:
Bravo Energy Resources, LLC, Docket No. ER04-0292-000, 2004,
Quarter 3.
Core Equities, Inc., Docket No. ER04-0646-000, 2004, Quarter 3.
HC Power Marketing, Docket No. ER02-0388-000, 2003, Quarter 4.
Maxim Energy Partners, LLC, Docket No. ER03-0827-000, 2004,
Quarter 1.
Mountainview Power Company, Docket No. ER98-4301-000, 2002,
Quarter 4.
Mt. Carmel Cogen, Inc., Docket No. ER02-1324-000, 2002, Quarter
4.
Phoenix Energy Associates, L.L.C., Docket No. ER03-0182-000,
2004, Quarter 2.
USP&G (Pennsylvania), Ltd., Docket No. ER03-0261-000, 2003,
Quarter 4.
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7. Accordingly, this order notifies those public utilities that
their market-based rate authorizations will be revoked unless they
comply with the Commission's requirements within 15 days of the
issuance of this order.
8. In addition, the above-captioned companies' failure to comply
with their Electric Quarterly Report filing requirements provides a
basis for the Commission to institute a proceeding under section 206 of
the FPA, to determine whether these companies may continue to make
wholesale power sales at market-based rates and whether any refunds
would be appropriate. In cases where, as here, the Commission
institutes a section 206 investigation on its own motion, section
206(b) of the FPA, as recently amended by section 1285 of the Energy
Policy Act of 2005,\6\ requires that the Commission establish a refund
effective date that is no earlier than the date of publication of
notice of its initiation of the investigation, but no later than five
months subsequent to that date. Consistent with our general policy,\7\
we will set the refund effective date as the date publication of notice
of its initiation of the investigation.
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\6\ Energy Policy Act of 2005, Public Law No. 109-58, 119 Stat.
594 (2005).
\7\ See, e.g., Seminole Electric Cooperative, Inc. v. Florida
Power & Light Co., 65 FERC ] 61,413 at 63,139 (1993); Canal Electric
Co., 46 FERC ] 61,153 at 61,539, reh'g denied, 47 FERC ] 61,275
(1989).
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9. In the event that any of the above-captioned market-based rate
sellers have
[[Page 116]]
already filed their required Electric Quarterly Reports in compliance
with the Commission's requirements, its inclusion herein is
inadvertent. Any such market-based rate seller is directed, within 15
days of the date of issuance of this order, to identify itself and
provide details about its prior filings that establish that it complied
with the Commission's Electric Quarterly Report filing requirements.
10. If any of the above-captioned market-based rate sellers does
not wish to continue having market-based rate authority and does not
foresee entering into any contracts to sell power at market-based
rates, it may file a notice of cancellation with the Commission
pursuant to section 205 of the FPA to cancel its market-based rate
tariff and relieve it of its obligation to submit further Electric
Quarterly Reports.
The Commission Orders
(A) Within 15 days of the date of issuance of this order, each
public utility listed in the caption of this order shall file all
delinquent Electric Quarterly Reports. If a public utility fails to
make this filing, the Commission will revoke that public utility's
authority to sell power at market-based rates and terminate its
electric market-based rate tariff. Upon expiration of the filing
deadline in this order, the Secretary shall promptly issue a notice,
effective on the date of issuance, listing the public utilities whose
tariffs have been revoked.
(B) Pursuant to the authority contained in and subject to the
jurisdiction conferred upon the Federal Energy Regulatory Commission by
section 402(a) of the Department of Energy Organization Act and by the
Federal Power Act, particularly section 206 thereof, and pursuant to
the Commission's Rules of Practice and Procedure and the regulations
under the Federal Power Act (18 CFR Chapter I), the Commission hereby
institutes a proceeding to determine whether the above-captioned
companies may continue to make wholesale power sales at market-based
rates and whether any refunds would be appropriate, as discussed in the
body of this order.
(C) The Secretary is hereby directed to publish this order in the
Federal Register.
By the Commission.
Magalie R. Salas,
Secretary.
[FR Doc. E5-8159 Filed 12-30-05; 8:45 am]
BILLING CODE 6717-01-P