[Federal Register Volume 62, Number 233 (Thursday, December 4, 1997)]
[Notices]
[Pages 64212-64214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31782]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission
[Docket Nos. ER98-33-000 and EL98-9-000]


Enron Power Marketing, Inc.; Order Accepting Rate Schedule for 
Filing, as Modified, Granting Waiver of Notice, and Announcing Policy 
Concerning Reassignment of Transmission Capacity by Power Marketers

Before Commissioners: James J. Hoecker, Chairman; Vicky A. Bailey, 
and William L. Massey

Issued November 28, 1997.
    In this order, we accept for filing Enron Power Marketing, Inc.'s 
(Enron Marketing's) proposed rate schedule for reassignment of 
transmission rights, subject to certain modifications. We also inform 
all power marketers of an amendment to their existing rate schedules 
pertaining to reassignment of transmission rights, and waive the prior 
notice and filing requirements with respect to reassignments of 
transmission capacity by power marketers.

Background

    On October 3, 1997, Enron Marketing submitted for filing a proposed 
tariff for the sale, assignment, or transfer of transmission rights 
procured under any open access transmission rate schedule by Enron 
Marketing on the transmission system of any transmission provider.
    Enron Marketing's rate schedule provides that the charges for such 
transmission service would be capped at

[[Page 64213]]

a price not to exceed the highest of: (1) The original transmission 
rate paid by Enron Marketing; (2) the transmission provider's maximum 
stated firm transmission rate at the time of the transmission 
reassignment; or (3) Enron Marketing's own opportunity costs capped at 
the cost of expansion at the time of reassignment. The rate schedule 
further provides that prior to any reassignment at a price based on 
opportunity costs, Enron Marketing will first file for Commission 
authorization pursuant to section 205 of the Federal Power Act (FPA), 
16 U.S.C. 824d (1994).
    In addition, Enron Marketing commits to provide the Commission 
information concerning each reassignment in the quarterly transaction 
reports it files with the Commission for its power sales.\1\ The 
specified information is: (1) The date of the assignment; (2) the name 
of the buyer; (3) the amount and type of transmission (e.g., firm or 
non-firm); (4) the identity of the transmission system on which the 
reassigned capacity exists; and (5) the length of the assignment.
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    \1\ Enron previously has received Commission authorization to 
engage in wholesale power sales at market-based rates as a power 
marketer. See Enron Power Marketing, Inc., 65 FERC para. 61,305, 
order on clarification and reh'g, 66 FERC para. 61,244 (1994). The 
Commission subsequently accepted for filing changes to Enron's 
market-based rate schedule to reflect a merger between Enron 
Marketing's corporate parent and Portland General Corporation. See 
Enron Corporation, et al., 78 FERC para. 61,179 (1997).
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    Enron Marketing requests waiver of the Commission's 60-day prior 
notice and filing requirement to allow an effective date of April 24, 
1997.
    Notice of Enron Marketing's filing was published in the Federal 
Register, 62 FR 55,240 (1997), with comments, protests, and 
interventions due on or before October 29, 1997. None was filed.

Discussion

The Commission's Policy

    The Commission stated in Order No. 888 that a public utility that 
reassigns transmission capacity must ``have on file with the Commission 
a Rate Schedule governing reassigned capacity.'' \2\ We recently 
affirmed and clarified this policy in Southwestern Public Service 
Company, 80 FERC para. 61,245 at 61,905 (1997), reh'g pending 
(Southwestern). In that order, we rejected the argument of a power 
marketer (Electric Clearinghouse, Inc.) that requiring all public 
utilities, including power marketers, to have on file a rate schedule 
for capacity reassignments would be unduly burdensome and would serve 
no purpose.
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    \2\ Promoting Wholesale Competition Through Open Access Non-
discriminatory Transmission Services by Public Utilities; Recovery 
of Stranded Costs by Public Utilities and Transmitting Utilities, 
Order No. 888, 61 Fed. Reg. 21,540 (1996), FERC Stats. & Regs. para. 
31,036 at 31,697 n.324 (1996), order on reh'g, Order No. 888-A, 62 
Fed. Reg. 12,274 (1997), FERC Stats. & Regs. para. 31,048 at 30,224 
n.151 (1997), order on reh'g, Order No. 888-B, 62 FR ____ (1997), 81 
FERC para. 61,248 (1997).
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The Instant Proceeding

    Enron Marketing's filing is consistent with the Commission's 
requirements regarding reassignment of transmission capacity.\3\ The 
proposed reassignment provisions would not allow Enron Marketing to 
acquire or reassign transmission service without complying with the 
open access transmission tariffs of transmission providers, and none of 
the procedures for transmission service under those tariffs is changed 
or modified by the proposed reassignment provisions. Accordingly, we 
will accept Enron Marketing's proposed rate schedule for filing.
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    \3\ See Order No. 888, FERC Stats. & Regs. at 31,694-97; Order 
No. 888-A, FERC Stats. & Regs. at 30,219-25; Commonwealth Edison 
Company, 78 FERC para. 61,312 at 62,335-36 (1997).
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    Enron Marketing states that the Commission has not established 
specific filing requirements in connection with reassignments of 
transmission capacity by power marketers. Enron Marketing proposes 
that, rather than file with the Commission a service agreement each 
time Enron Marketing makes a capacity reassignment, it provide in its 
quarterly transaction reports the information indicated above. Enron 
Marketing states that this is the same information that the Commission 
requires transmission-owning public utilities to provide when they file 
service agreements with the Commission.\4\
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    \4\ See, e.g., Virginia Electric and Power Company, 81 FERC 
para. 61,125, slip op. at 3 (1997).
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    We agree that the quarterly transaction report is an appropriate 
place to provide the necessary information. However, the information 
Enron Marketing proposes to include with its reports exceeds that which 
we require transmission providers to include in their umbrella service 
agreements for capacity reassignments. We require transmission 
providers to report only the name of the assignee.\5\ We will, 
therefore, require Enron Marketing to include only that information in 
its quarterly reports.
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    \5\ See, e.g., Griffin Energy Marketing, L.L.C., 81 FERC para. 
61,133, slip op. at 5 (1997).
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    Finally, Enron Marketing states that it was not aware until 
Southwestern was issued that ``non-traditional public utilities, such 
as power marketers,'' are subject to this requirement. Enron Marketing 
further states that, since learning of its obligation, it has acted 
promptly to ascertain its responsibilities and to comply. Because Enron 
Marketing made its first reassignment of capacity on April 24, 1997, it 
seeks waiver of the 60-day prior notice and filing requirement. We find 
good cause exists to grant Enron Marketing's request for waiver of the 
60-day notice and filing requirement and we will allow the proposed 
rate schedule to become effective, as requested, on April 24, 1997.

Applicability to Other Power Marketers Reassigning Transmission 
Capacity

    We take this opportunity to clarify, as explained in Southwesetern, 
the applicability of the transmission capacity reassignment filing 
requirements to all power marketers. In order to avoid the need for 
each power marketers. In order to avoid the need for each power 
marketer to file for Commission review an individual rate schedule for 
the reassignment of transmission capacity, we hereby inform all power 
marketers that their existing rate schedules will be amended to include 
the following language:

    This power marketer may reassign transmission capacity that it 
has reserved for its own use at a price not to exceed the highest 
of: (1) The original transmission rate paid by the power marketer; 
(2) the applicable transmission provider's maximum stated firm 
transmission rate on file at the time of the transmission 
reassignment; or (3) the power marketer's own opportunity costs, 
capped at the applicable transmission provider's cost of expansion 
at the time of the sale to the eligible customer. The power marketer 
will not recover opportunity costs in connection with reassignments 
without making a separate filing under Section 205. Except for the 
price, the terms and conditions under which the reassignment is made 
shall be the terms and conditions governing the original grant by 
the transmission provider. Transmission capacity may only be 
reassigned to a customer eligible to take service under the 
transmission provider's open access transmission tariff or other 
transmission rate schedules. This power marketer will report the 
name of the assignee in its quarterly reports.

    With the preceding language inserted in their existing rates 
schedules, all power marketers will have Commission authorization to 
engage in transmission capacity reassignments, without the necessity of 
making individual filings.\6\
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    \6\ Any filings made after the date of the order by a power 
marketer seeking market-based or cost-based rates shall include this 
language in its proposed rate schedule.
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    Consistent with our action above granting Enron Marketing's request 
for waiver, we find good cause exists to waive the prior notice and 
filing requirement for all power marketers

[[Page 64214]]

with respect to transmission capacity reassignments. The effective date 
of the rate schedule amendment will be the date of the first 
reassignment.
    Finally, consistent with the reporting requirement applied to Enron 
Marketing, we will require power marketers to include only the name of 
the assignee in their quarterly transaction reports. To the extent any 
power marketers already have made reassignments, they are directed to 
incorporate the required information in their next quarterly 
transaction report.

The Commission Orders

    (A) Enron Marketing's request for waiver of the 60-day notice and 
filing requirement is hereby granted, and the proposed rate schedule 
for the reassignment of transmission capacity, as modified, is hereby 
accepted for filing, effective April 24, 1997.
    (B) Enron Marketing is hereby informed of the following rate 
schedule designation: Enron Power Marketing, Inc., Rate Schedule FERC 
No. 40.
    (C) The power marketer rate schedules on file with the Commission 
are hereby revised, effective as of the date of the first reassignment 
of transmission capacity, to include the language discussed in the body 
of this order.
    (D) The Secretary is hereby directed to arrange for the prompt 
publication of this order in the Federal Register.

    By the Commission.
Lois D. Cashell,
Secretary.
[FR Doc. 97-31782 Filed 12-3-97; 8:45 am]
BILLING CODE 6717-01-M