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Enron Mail |
On 3/30/2000, FERC issued an order accepting InPower's market based rates
schedule that would permit entities that own generation to meet their own loads or for back up purposes (IPPs) to sell power at market based rates to InPower (on a profit share basis). InPower made the filing stating it estimated that IPPs in MAIN (and, specifically, Wisconsin) could supply a substantial portion of the summer energy shortfalls (FERC did not limit ImPower to IPPs in MAIN). InPower did not name any specific IPPs; however, to be eligible under ImPower's program, an IPP must control generation primarily for the purpose of meeting on-site demand or providing back-up generation and have such generation located on its premises or premises approved by the local utility. Further, the generation must be capable of producing electricity either synchronous with the local utilities' grid or commensurate with agreements with the local utility. Total sales made by IPPs in ImPower's program would not exceed 1000 MW/ hour. The IPPs are in businesses other than the sale of electricity and are simply seeking "incremental return on the often-unused capacity of their generation assets." When an IPP participates in ImPower's program, it becomes subject to FERC's jurisdiction as a "public utility." Jacksonville Electric Authority (JEA) protested ImPower's filing stating it allows retail customers to arbitrage retail and wholesale power markets by purchasing power at average, embedded cost retail rates and simultaneously using their generating facilities to sell power at wholesale to ImPower (at peak times). FERC addressed JEA's concerns by saying that the IPPs cannot violate any rules and requirements properly imposed on the retail sales made to those suppliers. This order allows ImPower (as an aggregator) to make the required quarterly filings for the IPPs and the IPPs do not have to apply for separate market based rates authority. The are some additional reporting requirements FERC waived for the IPPs: accounting and reporting, issuance of securities and interlocking directorates (an affidavit is still needed). I do not know if the IPPs are still required to become Exempt Wholesale Generators (EWGs), but will check on that. EWG approval takes 60 days (plus filing preparation time). The Enron Industrial group may want to consider making a similar type of filing. Please let me know if you would like a copy of the filing or order.
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