[Code of Federal Regulations]
[Title 18, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 18CFR2.17]

[Page 22-23]
 
           TITLE 18--CONSERVATION OF POWER AND WATER RESOURCES
 
  CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY
 
PART 2_GENERAL POLICY AND INTERPRETATIONS--Table of Contents
 
Sec. 2.17  Price discrimination and anticompetitive effect (price 
squeeze issue).

    To implement compliance with the Supreme Court decision in F.P.C. v. 
Con-Way Corp., 426 U.S. 271 (1976), aff'g 510 F. 2d 1264 (D.C. Cir. 
1975) and to expedite the consideration of price squeeze issues in 
wholesale electric rate proceedings, the Commission adopts the following 
procedures for raising price squeeze issues which are to be followed 
unless they are demonstrated in an individual case to be inadequate:
    (a) Any wholesale customer, state commission or other interested 
person may file petitions to intervene alleging price discrimination and 
anticompetitive effects of the wholesale rates. In order to have the 
issue of price discrimination considered in the rate proceeding, the 
intervening customer or other interested person must support its 
allegation by a prima facie case. The elements of the prima facie case 
shall include at a minimum:
    (1) Specification of the filing utility's retail rate schedules with 
which the intervening wholesale customer is unable to compete due to 
purchased power costs;
    (2) A showing that a competitive situation exists in that the 
wholesale customer competes in the same market as the filing utility;
    (3) A showing that the retail rates are lower than the proposed 
wholesale rates for comparable service;
    (4) The wholesale customer's prospective rate for comparable retail 
service, i.e. the rate necessary to recover bulk power costs (at the 
proposed wholesale rate) and distribution costs;

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    (5) An indication of the reduction in the wholesale rate necessary 
to eliminate the price squeeze alleged.
    (b) Where price squeeze is alleged, the Commission shall, in the 
order granting intervention, direct the Administrative Law Judge to 
convene a prehearing conference within 15 days from the date of the 
order for the purpose of hearing intervenors' request for data required 
to present their case, including prima facie showing, on price squeeze 
issues.
    (c) Within 30 days from the date of the conference the filing 
utility shall respond to the data requests authorized by the 
Administrative Law Judge.
    (d) Within 30 days from the filing utility's response, the 
intervenors shall file their case-in-chief on price squeeze issues, 
which shall include their prima facie case, unless filed previously.
    (e) The burden of proof (i.e. the risk of nonpersuasion) to rebut 
the allegations of price squeeze and to justify the proposed rates are 
on the utility proposing the rates under section 205(e) of the Federal 
Power Act.
    (f) In proceedings where price squeeze is an issue, the Secretary 
shall include the state commission, agency or body which is responsible 
for regulation of retail rates in the state affected in the service list 
maintained under Sec. 385.2010(c) of this chapter.

[Order 563, 42 FR 16132, Mar. 25, 1977, as amended by Order 225, 47 FR 
19054, May 3, 1982]