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From:janine.ponsart@bakernet.com
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Subject:E-Notes: Supreme Court Grants Review of FERC Order No. 888
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Date:Tue, 6 Mar 2001 13:15:00 -0800 (PST)

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E-Notes provides regular briefings on new developments in global energy and
public utility law.

March 6, 2001

Supreme Court Grants Review of FERC Order No. 888

Earlier last week, the United States Supreme Court granted two petitions for
certiorari to review the D.C. Circuit's decision in Transmission Access
Study Group v. FERC, 225 F.3d 667 (2000) regarding FERC Order No. 888, which
required open-access and non-discriminatory transmission service. The
Supreme Court has agreed to review legal challenges set forth in separate
petitions filed by several states led by New York and Enron Power Marketing.


The issue the multi-state petition presents for review is whether FERC may
preempt state jurisdiction over energy transmitted from generators to retail
customers in the same state. The Court also granted Enron's petition to
consider two far-reaching questions with major implications for the power
industry: (1) does FERC have jurisdiction to regulate all transmission in
interstate commerce, including transmission for bundled retail sales; and
(2) does the Federal Power Act obligate FERC to eliminate undue
discrimination by requiring transmission-owning utilities to provide service
on the same terms to all users, including bundled retail sales?

The Court has joined the two petitions for purposes of oral argument and
decision. Oral arguments in the two cases will not be scheduled before
October 2001 and a decision is not likely until 2002.

Michael J. Zimmer
John A. Cohen


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