Federal Register / Vol. 66, No. 97 / Friday, May 18, 2001 / Notices 27711

19The first transmission line lease is with Kansas

Gas and Electric Company, a wholly owned

subsidiary of Western Resources, Inc., for the Wolf

Creek/LaCygne transmission line under a tariff on

file with the FERC. The second transmission line

lease is with Associated Electric Cooperative, Inc.

for KCPL’s share of certain Joint Facilities, as

defined in the Coordinating Agreement by and

among Associated Electric Cooperative, Inc., Kansas

City Power & Light Company, St. Joseph Light &

Power Company, Nebraska Public Power District,

Omaha Public Power District, City of Lincoln and

Iowa Power Inc. for the Cooper-Fairport-St. Joseph

345 Kilovolt Interconnection.

20The combustion turbine lease is with First

Security Bank, N.A. as Owner Trustee, which

expires October 2001, unless extended by mutual

agreement of KCPL and the lessor.

distribution of electric energy for sale within

the United States;

(b) An EWG that sells electricity at marketbased rates which have been approved by the

FERC, provided that the purchaser is not

KCPL;

(c) A ‘‘qualifying facility’’ (‘‘QF’’) within

the meaning of the Public Utility Regulatory

Policies Act of 1978, as amended (‘‘PURPA’’)

that sells electricity exclusively (i) at rates

negotiated at arms’ length to one or more

industrial, commercial customers purchasing

the electricity for their own use and not for

resale, and/or (ii) to an electric utility

company at the purchaser’s ‘‘avoided cost’’ as

determined in accordance with the

regulations under PURPA;

(d) A domestic EWG or QF that sells

electricity at rates based upon its cost of

service, as approved by FERC or any state

public utility commission having

jurisdiction, provided that the purchaser is

not KCPL; or

(e) A rule 58 subsidiary or any other

Nonutility Subsidiary that (i) is partiallyowned by GPE, provided that the ultimate

purchaser of such goods or services is not

KCPL (or any other entity that GPE may form

whose activities and operations are primarily

related to the provision of goods and services

to KCPL), (ii) is engaged solely in the

business of developing, owning, operating

and/or providing services or goods to

Nonutility Subsidiaries described in clauses

(a) through (e) immediately above, or (iii)

does not derive, directly or indirectly, any

material part of its income from sources

within the United States and is not a publicutility company operating within the United

States.

4. Payment of Dividends out of Capital

and Unearned Surplus

GPE proposes, on behalf of each of its

current and future non-exempt

Nonutility Subsidiaries, that the

companies be permitted to pay

dividends with respect to the securities

of these companies, from time to time

through the Authorization Period, out of

capital and unearned surplus (including

revaluation reserve), to the extent

permitted under applicable corporate

law. However, without further approval

of the Commission, no non-exempt

Nonutility Subsidiary will declare or

pay any dividend out of capital or

unearned surplus if the Nonutility

Subsidiary derives any material part of

its revenues from the sale of goods,

services, electricity or natural gas to

KCPL. GPE requests that the

Commission reserve jurisdiction over

dividends paid by any non-exempt

Nonutility Subsidiary.

IV. Use of Proceeds

The proceeds from the postReorganization financings will be used

for general corporate purposes,

including: financing investments by and

capital expenditures of GPE and its

subsidiaries; funding of future

investments in any EWG, FUCO, ETC,

or energy-related or gas-related

company within the meaning of rule 58;

the repayment, redemption, refunding

or purchase by GPE or any subsidiary of

its own securities; financing working

capital requirements of GPE and its

subsidiaries; and for any other lawful

corporate purposes. More specifically,

the proceeds of the long-term debt or

other preferred or equity-linked

securities will enable GPE to reduce

short-term debt with permanent capital

and provide an important source of

future financing for the operations of

and investments in nonutility

businesses exempt under the Act.

Applicants represent that no financing

proceeds will be used to acquire the

securities of or other interest in any

company unless the acquisition has

been approved by the Commission in

this proceeding, in a separate

proceeding, or in accordance with an

available exemption under the Act or

rules, including sections 32 and 33 and

rule 58. Also, proceeds of financings

and guarantees utilized to fund

investments in rule 58 companies will

be subject to the limitations of that rule.

V. Leases and Service Arrangements

Finally, GPE requests authorization

under section 9(a)(1) for KCPL and GPE

to engage in certain leasing transactions

and authorization under sections 12 and

13 for certain intrasystem transactions.

KCPL currently leases certain utility

assets for use in providing electric

service within its service territory. Two

of these leases are for transmission

assets,19 and one lease is for a

combustion turbine.20 KCPL also leases

from nonaffiliates a number of railcars

for the purpose of delivering fuel to

KCPL’s electric generating plants.

Also, KCPL holds contracts for

delivery of five combustion turbines.

Following the Reorganization, KCPL

may transfer these contracts to GP

Power, an EWG affiliate. In the

alternative, KCPL may transfer these

contracts to nonaffiliated parties that, in

turn, would lease the delivered turbines

to KCPL or GP Power for use in GP

Power’s EWGs.

KCPL has been providing

administrative, management, technical,

legal and other support services to its

subsidiaries for some years, subject to

regulation by the MPSC and KCC. KCPL

intends to file with the Commission not

later than October 1, 2001, an

application/declaration seeking

authority to create a service company

and to implement the final support

service structure for the GPE holding

company system (‘‘GPE System’’). Until

the application/declaration is made

effective, Applicants request

authorization under section 13(b) of the

Act and rules for KCPL and the

Nonutility Subsidiaries, after

consummation of the Reorganization, to

provide services on an interim basis, as

well as sell goods, to each other and to

GPE (as well as services and goods of a

substantially similar nature). Applicants

request that the provision of services of

sale of goods may be on a basis other

than ‘‘cost,’’ provided the pricing

arrangements are consistent with

applicable Missouri and Kansas statutes

and regulations. KCPL request that the

interim authority extend until December

31, 2001, at which time, KCPL intends

to implement the final service company

structure for the GPE System.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 01–12507 Filed 5–17–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44304; File No. 4–444]

Roundtable on Portals

AGENCY: Securities and Exchange

Commission

ACTION: Notice of roundtable meeting.

SUMMARY: On May 23, 2001, the

Securities and Exchange Commission

will host a roundtable to discuss issues

related to relationships between Internet

websites and financial service

providers. Invitees include a cross

section of individuals, including

representatives from the financial

industry, representatives of the Internet

community, regulators, and academics.

The roundtable will take place at the

Commission’s William O. Douglas

Room, Room 1C30, 450 Fifth Street,

NW., Washington, DC, from 1 p.m. to

27712 Federal Register / Vol. 66, No. 97 / Friday, May 18, 2001 / Notices

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3Securities Exchange Act Release No. 44246 (May

2, 2001), 66 FR 23289.

4 17 CFR 240.11Ac1–5.

5The Rule defines ‘‘covered order’’ as any market

order or any limit order (including immediate-orcancel orders) received by a market center during

regular trading hours at a time when a consolidated

best bid and offer is being disseminated, and, if

executed, is executed during regular trading hours.

Excluded from the definition of ‘‘covered order’’ is

any order for which the customer requests special

handling for execution, including, but not limited

to, orders to be executed at a market opening or

closing price, orders submitted with stop prices,

orders to be executed only at their full size, orders

4:30 p.m. The public is invited to

observe the roundtable discussions.

Seating is available on a first-come firstserve basis. The schedule, agenda, and

list of panelists for the roundtable will

be posted on the Commission’s Internet

website (http://www.sec.gov).

FOR FURTHER INFORMATION CONTACT:

Brian Bussey or Christine Richardson,

Office of the Chairman, at (202) 942–

0100.

Dated: May 14, 2001.

Jonathan G. Katz,

Secretary.

[FR Doc. 01–12542 Filed 5–17–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44303; File No. SR–NASD–

2001–30]

Self-Regulatory Organizations; Notice

of Filing and Immediate Effectiveness

of Proposed Rule Change by the

National Association of Securities

Dealers, Inc. Establishing the Fee

Schedule for the Nasdaq ReSourceSM

Service

May 14, 2001.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 8,

2001, the National Association of

Securities Dealers, Inc. (‘‘NASD’’)

through its subsidiary, The Nasdaq

Stock Market, Inc. (‘‘Nasdaq’’) filed with

the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items I, II, and III below, which Items

have been prepared by Nasdaq. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Pursuant to the provisions of Section

19(b)(1) of the Act, and Rule 19b–4

thereunder, Nasdaq is herewith filing a

proposed rule change of the NASD to

establish the fee schedule Nasdaq’s new

ReSourceSM Service (‘‘Service’’). The

Service is voluntary and is designed to

assist NASD members in complying

with Rule 11Ac1–5 under the Act.

Below is the text of the proposed rule

change; proposed additions are

italicized.

* * * * *

7000. Charges for Services or Equipment

7010. System Services

(a)–(p) No Changes

(q) Nasdaq ReSourceSM Service

(1)(A) Subscribers to the Nasdaq

ReSourceSM shall be charged an

Activation Fee and an Annual

Subscription Fee, both of which

generally will vary depending upon a

subscriber’s trading volume, as

measured in accordance with

paragraphs (B) through (D) below, and

corresponding tier classification as

follows:

Tier Average monthly trade volume

1 .............. 500,000 or greater.

2 .............. 100,000–499,999

3 .............. 10,000–99,999

4 .............. 5,000–9,999

5 .............. 1,000–4,999

6 .............. 500–999

7 .............. 0–499

(B) During the first year of the

ReSourceSM Service (i.e., August 2001

through July 2002) Nasdaq will assign

subscribers to one of the tiers listed in

paragraph (A) above based on their

average monthly trading volume

reported to the tape, for the period from

September 1, 2000, through February

28, 2001, in Nasdaq National Market

securities for which the subscriber is

registered as a market maker.

(C) Members that subscribe to the

ReSourceSM Service other than at the

beginning of a ‘‘Subscription Year,’’ as

the term is defined below, will be

assigned to one of the tiers listed in

paragraph (A) above based on their

average monthly trading volume

reported to the tape, during the six

month period preceding the date of their

subscription, in Nasdaq National

Market securities for which the

subscriber is registered as a market

maker.

(D) Beginning in July of 2002, and on

an annual basis thereafter, Nasdaq will

review each subscriber’s average

monthly trading volume and assign the

subscriber to one of the tiers listed in

paragraph (A) above based on their

average monthly trading volume

reported to the tape, during the

preceding six month period, in Nasdaq

National Market securities for which the

subscriber is registered as a market

maker.

(2)(A) Activation Fees and Annual

Subscription Fees shall be as follows:

Tier Activation fee

Annual

subscription

fee

1 ................ $3,000 $35,000

Tier Activation fee

Annual

subscription

fee

2 ................ 3,000 30,000

3 ................ 2,000 20,000

4 ................ 1,000 10,000

5 ................ 1,000 7,500

6 ................ 1,000 5,000

7 ................ 1,000 2,500

(B) The Activation Fee shall be billed

after execution of the Addendum to

Nasdaq Workstation II Subscriber

Agreement for Nasdaq ReSourceSM

(‘‘Agreement’’).

(C) The Annual Subscription Fee shall

be charged after execution of the

Agreement, and at the beginning of each

Subscription Year thereafter. A

‘‘Subscription Year’’ shall mean a 12-

month period from August 1st to July

31st. The Annual Subscription Fee will

be pro-rated on a monthly basis for

those firms that subscribe to the Service

other than at the beginning of a

Subscription Year. Nasdaq will offer no

refunds of the Annual Subscription Fee.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

Nasdaq included statements concerning

the purpose of, and basis for, the

proposed rule change and discussed any

comments it received on the proposed

rule change. The text of these statements

may be examined at the places specified

in Item IV below. Nasdaq has prepared

summaries, set forth in Sections A, B,

and C below, of the most significant

aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

On May 2, 2001, the Commission

approved the Nasdaq Resource SM

Service, 3 which is designed to assist

NASD members in complying with

certain of their obligations pursuant to

Rule 11Ac1–5 4 (the ‘‘Rule’’) under the