FERC order re: imbalances

A helpful FERC order as we work on asset management deals:

New Horizon Electric Cooperative Inc. v. Duke Power Company, EL00-101-001.
Order on Rehearing. Order issued October 11, 2000 addressing a complaint by
New Horizon Electric Cooperative, Inc (New Horizon) against Duke Power Co.
(Duke) seeking FERC resolution of four disputed issues, including treatment
of energy imbalances not prevented by dynamic scheduling. New Horizon's
complaint claimed that energy imbalance service does not apply to it, since
it will employ dynamic scheduling to effectively remove its load from Duke's
control area. Further, New Horizon maintained that any deviation between the
dynamic schedule and the actual metered delivery of energy constituted
inadvertent interchange energy (which is the net difference between actual
and scheduled interchange energy between two control areas) and proposed that
any differences would be returned in-kind within two hours. On November 9,
New Horizon filed a request for rehearing or clarification of the October 11
Order. Order issued February 26 granting New Horizon's request for rehearing
or clarification of the October 11 Order. Order clarifies that, to the extent
dynamic scheduling by New Horizon operates successfully; New Horizon should
not be subject to charges under Duke's Schedule 4 Energy Imbalance Service.
In such circumstances, any imbalances between energy deliveries on behalf of
New Horizon and New Horizon's load should be accounted for by Duke as
inadvertent interchanges only. In addition, Order directed parties to
negotiate in good faith to establish a standard for the successful operation
of dynamic scheduling.