Permits: Interconnection: Easier for EPMI/EES to purchase from

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To alert you to another item that may arise: Some industrials have air
permits that restrict them to running for self-supply backup generation
only. In such case, the air permit may have to be amended by the industrial
before it can sell to the grid. Feel free to call upon Gov't Affairs if you
have a question about this.

Christi L Nicolay
05/01/2001 05:28 AM
To:
cc:

Subject: Interconnection: Easier for EPMI/EES to purchase from industrials

*****Please note that with the authorization below, interconnection issues
with the attached utility still need to be addressed. (This includes
agreement, queue, facilities if needed, etc.) Call us if you need
assistance. Thanks.

Attached is FERC authorization for EPMI and EES to purchase power from
industrials NATIONWIDE (effective March 6, 2001--Does not expire). The
industrial does not have to obtain its own power marketer license from FERC
(subject to EPMI and EES making certain after the fact quarterlty filings for
the industrials).

Specifics:

Owners of generating facilities located at business locations and used
primarily for back-up for self-generation (who will be "public utilities"
subject to the Federal Power Act only while they sell at wholesale) can sell
power at wholesale from such facilities to EPMI and EES without prior notice
under section 205 of FPA (would usually require 60 day advance notice
filing).
-- Waives certain parts of the filing requirements for the industrial;
however, the industrial will still be subject to shortened filing
requirements for dispositions of facilities and interlocking positions while
they are selling at wholesale.
-- EPMI and EES will make the FERC quarterly filings on behalf of the
industrials for any of these purchases. Our report must show the names of
the industrial; aggregate amount of capacity and/or energy purchased from
each seller; and the aggregate compensation paid to each seller.
Accounting/commercial folks for EPMI and EES-- please make sure these
purchases are flagged in the accounting system, since the report will be
separate from our big quarterly reports.
-- This does not authorize the retail industrial customer to violate any
rules or tariffs of its host utility. This does not authorize an industrial
to resell power it purchases (only can sell what it generates); unless
otherwise allowed (or not precluded) by its retail tariff.

West Desk: This is similar to the authorization that FERC gave last week to
purchases from industrials in WSCC.

____________________________________
On April 27, FERC issued an order granting EPMI and EES the authority to
purchase power from IPPs at market-based rates. As the attached order
indicates, the effective date of the EPMI and EES rate schedules is March 6,
2001.

- ER011394.wpd
- ER011394.doc