[Federal Register: March 11, 2009 (Volume 74, Number 46)]
[Notices]
[Page 10560-10561]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11mr09-47]
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DEPARTMENT OF ENERGY
[OE Docket No. EA-343]
Application to Export Electric Energy; Midwest Independent
Transmission System Operator, Inc.
AGENCY: Office of Electricity Delivery and Energy Reliability, DOE.
ACTION: Notice of application.
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SUMMARY: The Midwest Independent Transmission System Operator, Inc.
(Midwest ISO) has applied for authority to transmit electric energy
from the United States to Canada pursuant to section 202(e) of the
Federal Power Act.
DATES: Comments, protests, or requests to intervene must be submitted
on or before April 10, 2009.
ADDRESSES: Comments, protests, or requests to intervene should be
addressed as follows: Office of Electricity Delivery and Energy
Reliability, Mail Code: OE-20, U.S. Department of Energy, 1000
Independence Avenue, SW., Washington, 20585-0350 (Fax 202-586-8008).
FOR FURTHER INFORMATION CONTACT: Ellen Russell (Program Office) 202-
586-9624 or Michael Skinker (Program Attorney) 202-586-2793.
SUPPLEMENTARY INFORMATION: Exports of electricity from the United
States to a foreign country are regulated by the Department of Energy
(DOE) pursuant to sections 301(b) and 402(f) of the Department of
Energy Organization Act (42 U.S.C. 7151(b), 7172(f)) and require
authorization under section 202(e) of the Federal Power Act (FPA) (16
U.S.C. 824a(e)).
On July 11, 2008, DOE received an application from Midwest ISO for
authority to transmit electric energy from the United States to Canada.
Midwest ISO does not own or operate electric generation, transmission
or distribution facilities nor does it have a franchised electric power
service territory. Midwest ISO is a not-for-profit, non-stock
corporation, a ``public utility'' under Part II of the FPA, and a
``Regional Transmission Organization'' (RTO) approved by the Federal
Energy Regulatory Commission (FERC) under Order No. 2000, 18 CFR 35.34
et seq.
As an RTO, Midwest ISO has authority (referred to as ``functional
control'') to direct the use of transmission facilities owned,
operated, and maintained by transmission owning members of Midwest ISO
for the purpose of providing open access non-discriminatory
transmission service. In addition, Midwest ISO has administered day-
ahead and real-time energy markets with financial transmission rights
since April 2005. In its application, Midwest ISO indicated that
beginning September 9, 2008 (this was later changed to January 6, 2009)
it would administer a market for operating reserves under its Energy
and Operating Reserves Markets Tariff (Tariff). In so doing, Midwest
ISO became a Balancing Authority registered with the North American
Electric Reliability Corporation (NERC) and is responsible for meeting
NERC reliability standards applicable to Balancing Authorities,
including the requirement to enter into agreements with neighboring
Balancing Authorities for coordination and emergency assistance. These
agreements may require Midwest ISO to exchange emergency energy with
Canadian counterparties, including Manitoba Hydro and the Independent
Electric System Operator (IESO).
Prior to Midwest ISO's commencing to administer the market for
operating reserves, emergency energy had been transmitted into Canada
from the Midwest ISO region by one or more Balancing Authorities or
Market Participants operating under the Midwest ISO Tariff, pursuant to
bilateral agreements between the buyer and seller and pursuant to the
terms and conditions of various export authorizations issued by DOE,
using international transmission facilities authorized by Presidential
permits. Not all of the international transmission facilities at the
Canadian border subject to Presidential permits have been transferred
to the functional control of Midwest ISO by their owners. Such
facilities are not subject to the authority of Midwest ISO as an RTO.
However, Midwest ISO, in its capacity as Reliability Coordinator, has
the authority to direct actions necessary to preserve the safety and
reliability of the Eastern Interconnection, which includes Manitoba
Hydro and IESO. To the extent such direction affects such international
transmission facilities, it takes into account, and is subject to, the
conditions of the applicable Presidential permit.
Effective January 6, 2009, Midwest ISO will be the responsible
Balancing Authority for implementing the payback of unscheduled energy
flows to the Eastern Interconnection. Unscheduled, or ``inadvertent,''
energy is the difference between the actual metered energy interchange
and the scheduled energy interchange between two adjacent Balancing
Authority Areas (previously called ``control areas''). Consequently,
Midwest ISO may from time to time initiate unilateral payback of
unscheduled energy resulting in energy flows across border facilities
with the Canadian Balancing Authorities, or Midwest ISO may enter a
bilateral schedule for energy exports directly to Manitoba Hydro or the
IESO to affect the payback of unscheduled energy to those entities.
Midwest ISO does not take title to electric energy in its market,
or to energy transmitted out of its market, including electric energy
exported to Canada. Even pursuant to its role as a
[[Page 10561]]
Balancing Authority, Midwest ISO will not take title to electric energy
under any circumstances, but will buy or sell such energy ``for and on
behalf of'' its Market Participants (as defined in the Midwest ISO
Tariff) and will distribute revenues or collect the costs of such
energy as set forth in the Tariff.
In addition, in operating as a Balancing Authority, Midwest ISO
will be a member of a contingency reserve sharing group that includes
Manitoba Hydro and proposes to export emergency energy to Manitoba
Hydro under the terms of the contingency reserve sharing agreement.
Traditionally, DOE has required that the last entity to hold title
to the electricity inside the U.S. obtain export authority. The
rationale being that such an entity could affect the transfer and,
therefore, impact the operational reliability of the system. Although
Midwest ISO is not the title holder of the electricity bring exported,
DOE believes that as a Balancing Authority, Midwest ISO occupies the
position of affecting the export and as an RTO, has the legal
responsibility for the reliable operation of the electric system.
Based on the above, DOE believes that Midwest ISO must obtain
authorization to export electricity under section 202(e) of the FPA.
However, because of the fairly recent introduction of different types
of entities, like RTOs, ISOs, Balancing Authorities, and similarly
situated entities, each of whom may affect the transmission of electric
energy from the United States to a foreign country and be responsible
for the reliable operation of the electric system, DOE is inviting
comments on the appropriateness of issuing export authorizations to
entities like Midwest ISO. For the time being, DOE will address the
question of whether a particular entity needs an export authorization
on a case-by-case basis. DOE intends to initiate a proceeding in the
near future to explore the more general question of what types of
entities need an electricity export authorization from DOE. In that
proceeding, DOE will be looking for ways to reduce the administrative
burden on entities engaged in the international electricity market,
while continuing to satisfy our statutory obligations.
The electric energy which Midwest ISO proposes to export to Canada
would be transmitted over the international transmission facilities
owned by International Transmission Co., Minnesota Power, Inc.,
Minnkota Power Cooperative, Inc., and Northern States Power Company/
Xcel.The construction, operation, maintenance, and connection of each
of these international transmission facilities to be utilized by
Midwest ISO has previously been authorized by a Presidential permit
issued pursuant to Executive Order 10485, as amended.
On December 22, 2008, Midwest ISO submitted an application for
emergency temporary authorization to export electric energy to Canada
in this docket, asserting that FERC had issued a final order on
December 18, 2008, authorizing Midwest ISO to begin operating its
Ancillary Services Market on January 6, 2009. The application requested
that DOE issue an emergency temporary export authorization pending
completion of this proceeding. On December 24, 2008, DOE granted
Midwest ISO the temporary authority to export electric energy to Canada
beginning January 6, 2009 as requested, until final resolution of the
matter in this proceeding.
Procedural Matters: Any person desiring to become a party to these
proceedings or to be heard by filing comments or protests to this
application should file a petition to intervene, comment, or protest at
the address provided above in accordance with Sec. Sec. 385.211 or
385.214 of the Federal Energy Regulatory Commission's Rules of Practice
and Procedures (18 CFR 385.211, 385.214). Fifteen copies of each
petition and protest should be filed with DOE on or before the date
listed above.
Comments on the Midwest ISO application to export electric energy
to Canada should be clearly marked with Docket No. EA-343. Additional
copies are to be filed directly with Gregory A. Troxell, Assistant
General Counsel, Midwest ISO, P.O. Box 4202, Carmel, Indiana 46082-
4202. A final decision will be made on this application after the
environmental impacts have been evaluated pursuant to the National
Environmental Policy Act of 1969, and a determination is made by DOE
that the proposed action will not adversely impact on the reliability
of the U.S. electric power supply system.
Copies of this application will be made available, upon request,
for public inspection and copying at the address provided above, by
accessing the program Web site at http://www.oe.energy.gov/permits_
pending.htm, or by e-mailing Odessa Hopkins at
Odessa.hopkins@hq.doe.gov.
Issued in Washington, DC, on March 4, 2009.
Anthony J. Como,
Director, Permitting and Siting, Office of Electricity Delivery and
Energy Reliability.
[FR Doc. E9-5167 Filed 3-10-09; 8:45 am]
BILLING CODE 6450-01-P