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---------------------- Forwarded by Kay Mann/Corp/Enron on 05/23/2001 11:07 AM --------------------------- From: Christi L Nicolay @ ECT 05/22/2001 06:27 PM To: Kay Mann/Corp/Enron@Enron, Carlos Sole/NA/Enron@Enron, Ann Elizabeth White/HOU/ECT@ECT, Karen E Jones/ENRON@enronXgate, Jeffrey T Hodge/HOU/ECT@ECT, Steve Van Hooser/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, sscott3@enron.com, Ray Alvarez/NA/Enron@ENRON, Christian Yoder/Enron@EnronXGate@ECT, Dale Rasmussen/Enron@EnronXGate, Bill Clydesdale/ENRON@enronXgate, Steve C Hall/ENRON@enronXgate cc: Mitch Robinson/Corp/Enron@Enron, John Moore/Enron@EnronXGate Subject: Re: FW: FERC clarifies credits for upgrades Legal folks -- please let me know of any other legal people who should be added to interconnection issue emails. On May 16, FERC clarified its policy regarding credits for network upgrades associated with the interconnection of a generating facility -- all network upgrade costs (the cost of all facilities from the point where the generator connects to the grid), including those necessary to remedy short-circuit and stability problems, should be credited back to the customer that funded the upgrades once the delivery service begins. Once a customer signs up for transmission, then the transmission provider is limited to charging the higher of the expansion cost or an embedded cost rate. Generally, Enron has not procured transmission at the time of interconnection and therefore, may be required to pay the network upgrades at the time of interconnection; however, the order clarifies that a credit should be available to the interconnecting customer or a third party that contracts for transmission away from the generator. Kinder Morgan v. Consumers Energy (Docket No. ER01-1587-000)
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