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Enron Mail |
PacifiCorp terminated its service to Cheyenne Light Fuel and Power effectiv=
e=20 2/ 24. Below is a summary of the=20 dispute between PacifiCorp and Cheyenne and FERC resolution. Here's your= =20 chance to be a hero. =20 On December 20, Cheyenne Light, Fuel and Power Co. filed a complaint agains= t=20 PacifiCorp requesting=20 the FERC to order PacifiCorp to continue service to Cheyenne under the rate= s,=20 terms and conditions of the=20 Power Sales Agreement (PSA) following December 31, 2000, until at least suc= h=20 time as PacifiCorp has provided=20 notice of termination a minimum of 60 days in advance of the proposed=20 termination date. Cheyenne is a full=20 requirements customer of PacifiCorp under a power sales agreement executed= =20 and filed with FERC in 1995=20 with a term that expires on December 31, 2000. Cheyenne has attempted to=20 agree to terms with PacifiCorp for=20 a replacement power sales agreement, but PacifiCorp has demanded prices man= y=20 times higher than current=20 prices under the PSA and substantially higher than the $74 per MWh benchmar= k=20 price FERC recently established=20 as a presumptively prudent long-term price for sales in the California=20 markets. PacifiCorp will terminate service=20 under the PSA upon its expiration on December 31, 2000, but PacifiCorp has= =20 not filed with FERC a notice of=20 termination of the PSA. Cheyenne stated that termination of service could= =20 impair Cheyenne's ability to serve its retail customers, thereby harming both Cheyenne and its customers. On=20 December 26, PacifiCorp filed a notice=20 of termination for the PSA with Cheyenne. On December 27, PacifiCorp filed = an=20 unexecuted letter agreement with=20 Cheyenne under its market-based tariff for power sales as a replacement for= =20 the Existing Agreement. Order issued=20 February 7 (1) dismissing Cheyenne=01,s complaint; (2) accepting PacifiCorp= =01,s=20 notice of termination and denying its=20 request for waiver of our notice requirement, to allow the PSA to terminate= =20 at the end of the day on February 24, 2001;=20 and (3) rejecting PacifiCorp=01,s unexecuted letter agreement. Since the Or= der=20 is denying PacifiCorp=01,s request for=20 waiver of notice and accepting the notice of termination and Cheyenne oppos= ed=20 the rates under this letter agreement=20 in any event, Order found no need to accept the alternative interim agreeme= nt=20 offered by PacifiCorp. Requests for=20 Rehearing due March 9.
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