Federal Register / Vol. 70, No. 228 / Tuesday, November 29, 2005 / Notices 71479 

1Reporting Requirement for Changes in Status for 

Public Utilities with Market-Based Rate Authority, 

FERC Stats. & Regs., Regulations Preambles III 

¶ 31,175 (Feb. 10, 2005) (Order No. 652), order on 

reh’g, 111 FERC ¶ 61,413 (2005). 18 CFR 35.27(c) 

(2005). 2See, e.g., 18 CFR 35.27(c)(1) (defining a ‘‘change 

in status’’ to include, but not be limited to, 

‘‘ownership or control of generating or transmission 

facilities or inputs to electric power production 

other than fuel supplies.’’). 3The agreements themselves were not included 

by the Calpine Entities in their submittal. 

complete title of the information 

collection when making your request. 

Comments regarding burden and/or 

the collection activity requirements 

should be directed to Joe Schubart at 

Joe.Schubart@ed.gov. Individuals who 

use a telecommunications device for the 

deaf (TDD) may call the Federal 

Information Relay Service (FIRS) at 1–

800–877–8339. 

[FR Doc. E5–6629 Filed 11–28–05; 8:45 am] 

BILLING CODE 4000–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

Order Addressing Change in Status 

Filing and Providing Guidance 

Issued November 17, 2005. 

Before Commissioners: Joseph T. 

Kelliher, Chairman; Nora Mead 

Brownell, and Suedeen G. Kelly. 

Docket Nos. 

Calpine Energy Services, 

LP .................................. ER00–3562–003; 

ER05–817–001; 

Calpine PowerAmericaOR, LLC ........................ ER03–341–002 

Calpine PowerAmericaCA, LLC ........................ ER03–342–002 

Power Contract Financing, 

LLC ................................ ER03–838–003 

PCF2, LLC ........................ ER04–1081–001 

Calpine Energy Management, LP ........................ ER04–1080–001 

CES Marketing V, LP ....... ER03–209–002 

Calpine Northbrook Energy Marketing, LLC ..... ER03–36–004 

MEP Pleasant Hill, LLC .... ER99–2858–008 

Calpine Bethpage 3, LLC ER05–48–001 

Ontelaunee Power Operating Company, LLC ..... ER05–1266–001 

CES Marketing VIII, LLC .. ER05–818–001 

CES Marketing IX, LLC .... ER05–819–001 

CES Marketing X, LLC ..... ER05–820–001 

Zion Energy, LLC ............. ER02–1319–004 

Calpine Newark, LLC ....... ER04–831–002 

Calpine Parlin, LLC .......... ER04–832–002 

Calpine Construction Finance Company, LP ..... ER00–1115–003 

Calpine Philadelphia Energy, Inc. ....................... ER03–446–002 

CPN Bethpage 3rd Turbine, Inc. ....................... ER02–1959–003 

Bethpage Energy Center 

3, LLC ........................... ER04–1099–001 

TBG Cogen Partners ........ ER04–1100–001 

Gilroy Energy Center, LLC ER01–2688–008 

Creed Energy Center, LLC ER02–2227–004 

Delta Energy Center, LLC ER02–600–006 

Goose Haven Energy 

Center, LLC ................... ER02–2229–003 

Los Esteros Critical Energy Facility, LLC .......... ER03–24–003 

Metcalf Energy Center, 

LLC ................................ ER05–67–001 

Pastoria Energy Facility 

LLC ................................ ER05–68–001 

Docket Nos. 

Geysers Power Company, 

LLC ................................ ER99–1983–003 

Calpine California Equipment Finance Company, 

LLC ................................ ER03–290–002 

1. In this order, the Commission 

accepts a notice of change in status filed 

by Calpine Energy Services, L.P. (CES) 

and its affiliated public utilities 

(collectively, the Calpine Entities), to 

report a change in status that reflects a 

departure from the characteristics that 

the Commission relied upon in granting 

these entities market-based rate 

authority, pursuant to the reporting 

requirements of Order No. 652.1 For the 

reasons discussed below, and based on 

Calpine Entities’ representations, we 

accept the Calpine Entities’ change in 

status filing. 

Background 

2. On September 9, 2005, CES and the 

Calpine Entities filed a notice of change 

in status to report that CES, a power 

marketer, had entered into two Energy 

Management Agreements regarding 

certain third party-owned electric 

generating assets as described below. In 

addition, the Calpine Entities state that 

CES anticipates entering into a third 

such agreement, as also described 

below. The Calpine Entities state that 

under the Commission’s regulations, 

they are required to report any change 

in status that would reflect a departure 

from the characteristics the Commission 

relied upon in granting them marketbased rate authority.2 The Calpine 

Entities assert that they are providing 

this notice here out of an abundance of 

caution based on their belief that the 

Energy Management Agreements 

described in their filing do not 

constitute a change in status, as 

contemplated by the Commission’s 

regulations. The Calpine Entities claim 

that CES will not acquire control of the 

facilities at issue under these 

agreements.3

3. The Calpine Entities state that even 

assuming CES is deemed to acquire 

control of these facilities, this authority 

would not alter the Commission’s prior 

determinations that CES and its 

affiliates satisfy the Commission’s fourpart test for market based rate authority. 

The IECC Agreement 

4. The Calpine Entities state that on 

July 29, 2005, CES and Inland Empire 

Energy Center, LLC (IECC) entered into 

an Energy Management Agreement 

(IECC Agreement), pursuant to which 

CES will provide certain services to 

IECC, the owner of a 775 MW natural 

gas-fired electric generating facility 

located in Riverside County, California 

(IECC Facility). The Calpine Entities 

state that the IECC Facility is expected 

to begin commercial operations in 2008, 

with the output of the facility to be 

delivered into the transmission system 

operated by the California Independent 

System Operator, Inc. (CAISO). 

5. The Calpine Entities state that CES 

will act as IECC’s agent to market and 

schedule the energy, capacity, ancillary 

services, and any other product 

produced by the IECC Facility and 

arrange for the procurement and 

maintenance of transmission service for 

the products produced by the IECC 

Facility. CES states it will also arrange 

for the procurement and scheduling of 

natural gas supplies for use at the IECC 

Facility. The Calpine Entities state that 

IECC will be the operator of the IECC 

Facility and that CES will act pursuant 

to orders from IECC. CES states it will 

have limited discretion as to prices for 

which it sells the output of the IECC 

Facility and purchases products used to 

generate the IECC’s Facility’s output and 

deliver this output to third parties. 

The POA Agreement 

6. The Calpine Entities state that on 

August 5, 2005, CES and Project Orange 

Associates, L.L.C. (POA) entered into an 

Energy Management Agreement (POA 

Agreement), pursuant to which CES will 

provide certain services to POA, the 

owner of an 80 MW natural gas-fired 

cogeneration facility located in 

Syracuse, New York (POA Facility). The 

Calpine Entities state that the output of 

the POA Facility will be sold into the 

markets operated by the New York 

Independent System Operator (NYISO). 

CES states that it will act as POA’s agent 

and, as directed by POA, bid, schedule, 

and sell the output of the POA Facility 

in the NYISO market. CES also states it 

will schedule natural gas transportation 

deliveries and assist in managing POA’s 

pipeline imbalances. The Calpine 

Entities state that CES will have limited 

discretion concerning the prices for 

which it sells the output of the POA 

Facility and purchases fuel and other 

products. 

71480 Federal Register / Vol. 70, No. 228 / Tuesday, November 29, 2005 / Notices 

4 70 FR 57,573 (2005). 

5 ‘‘In short, if an applicant has control over 

certain capacity such that the applicant can affect 

the ability of the capacity to reach the relevant 

market, then the capacity should be attributed to 

the applicant when performing the generation 

market power screens.’’ Order No. 652 at P 47. 

6 16 U.S.C. 824b (2000). 

7Order No. 652 at P 35. 

8The Calpine Entities rely, in this regard, on their 

recently submitted triennial review analyses, for 

each of these three markets. 

9See Creed Energy Center, LLC, Docket No. ER02–

2227–003, (November 2, 2005) (unpublished letter 

order). See also CES Marketing VI, LLC et al., 111 

FERC ¶ 61,261 (2005). 

The OPOC Agreement 

7. The Calpine Entities state that CES 

and Ontelaunee Power Operating 

Company, LLC (OPOC) expect to enter 

into an Energy Management Agreement 

in September 2005 (OPOC Agreement), 

pursuant to which CES will provide 

certain services to OPOC, the owner of 

a 587 MW electric generation facility 

located in Reading, Pennsylvania. The 

Calpine Entities state that the output of 

the facility will be sold into the markets 

operated by PJM Interconnection, L.L.C. 

(PJM). CES states that it will provide the 

following services at the direction of, 

and subject to the approval of, OPOC: 

Power management services (including 

marketing, bidding, and scheduling), 

fuel management, and risk management 

services. CES states that it will have the 

authority to enter into transactions for 

the purchase or sale of fuel or power 

with a term of 31 days or less. In 

addition, the Calpine Entities state that 

the authority for CES to execute other 

types of transactions could be delegated 

by OPOC from time-to-time by written 

notice. 

8. Finally, the Calpine Entities 

include in their submittal tariff 

revisions for those of their affiliates who 

have not previously filed to revise their 

market-based rate tariffs to include the 

reporting requirement for changes in 

status, as required by Order No. 652. 

9. Notice of the Calpine Entities’

submittal was published in the Federal 

Register,4 with interventions or protests 

due on or before October 11, 2005. None 

was filed. 

Discussion 

10. For the reasons discussed below, 

we will accept the Calpine Entities’

notice of change in status, as it relates 

to the POA Agreement and the OPOC 

Agreement. We will not address, at this 

time, the Calpine Entities’

representations as they relate to the 

IECC Agreement, given the premature 

nature of any evaluation concerning 

market conditions in the CAISO market 

as of the IECC Facility’s projected 2008 

in-service date. 

11. Order No. 652 requires that a 

seller with market-based rate authority 

notify the Commission of a change in 

status that would reflect a departure 

from the characteristics relied upon by 

the Commission in granting the seller 

market-based rate authority. Section 

35.27(c)(1) of the Commission’s 

regulations defines a change in status to 

include but not be limited to 

‘‘ownership or control of generation or 

transmission facilities or inputs to 

electric power production other than 

fuel supplies.’’

12. The Calpine Entities state that 

under the Energy Management 

Agreements described herein CES will 

not exercise control over the generating 

facilities at issue (i.e., over the IECC 

Facility, the POA Facility, or the OPOC 

Facility), as contemplated by Order No. 

652.5 However, we cannot make this 

determination here based on the record 

before us, in the absence of the 

agreements at issue and/or a more 

detailed description of the services 

provided under these agreements and 

their effect on the Calpine Entities’

market power analyses. 

13. We clarify, in this regard, that 

sellers making a change in status filing 

to report an energy management 

agreement are required to make an 

affirmative statement in their filing as to 

whether the agreement at issue transfers 

control of any assets and whether the 

agreement results in any material effect 

on the conditions that the Commission 

relied upon for the grant of their marketbased rate authority. On some 

occasions, and at the Commission’s 

discretion, the Commission may request 

the seller to submit a copy of the 

agreement and provide supporting 

documentation. 

14. We further clarify that a seller 

making a change in status filing is 

required to state whether it has made a 

filing pursuant to section 203 of the 

Federal Power Act.6 To the extent the 

seller has made a section 203 filing that 

it submits is being made out of an 

abundance of caution and thus has 

voluntarily consented to the 

Commission’s section 203 jurisdiction, 

the seller will be required to incorporate 

this same assumption in its marketbased rate change in status filing (e.g., 

if the seller assumes that it will control 

a jurisdictional facility in a section 203 

filing, it should make that same 

assumption in its market-based rate 

change in status filing and, on that 

basis, inform the Commission as to 

whether there is any material effect on 

its market-based rate authority).7

15. The Calpine Entities argue that 

even assuming that CES will control the 

capacity attributable to its Energy 

Management Agreements, neither CES 

nor any of its affiliates would possess 

generation market power in the relevant 

markets (i.e., in the CAISO, PJM, or the 

NYISO), or fail to satisfy the 

Commission’s other requirements 

applicable to their market-based rate 

authority.8

16. We agree that even attributing the 

capacity associated with the POA 

Facility and the OPOC Facility to the 

Calpine Entities would not alter our 

recent determinations that the Calpine 

Entities, in these markets (i.e., in the 

NYISO and PJM), continue to satisfy our 

requirements applicable to the grant of 

their market-based rate authority.9

However, as noted above, we cannot 

decide this issue at this time, as it 

relates to the IECC Facility, which is not 

scheduled to become operational until 

2008. A change in status filing regarding 

CES’ agreement with regard to the IECC 

Facility should be made by the Calpine 

Entities no later than 30 days after the 

IECC Facility becomes operational. 

17. Finally, we will accept for filing 

the Calpine Entities’ proposed tariff 

revisions incorporating the reporting 

requirement for changes in status, as 

required by Order No. 652. 

The Commission Orders 

(A) The Calpine Entities’ notice of 

change in status and proposed tariff 

revisions are hereby accepted for filing, 

in part, as discussed in the body of this 

order. 

(B) The Secretary is directed to 

publish a copy of this order in the 

Federal Register. 

By the Commission. 

Magalie R. Salas, 

Secretary. 

[FR Doc. 05–23468 Filed 11–28–05; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

Combined Notice Of Filings #1 

November 21, 2005. 

Take notice that the Commission 

received the following electric rate 

filings 

Docket Numbers: ER03–9–004; ER03–

9–005; ER98–2157–005; ER98–2157–006 

EL05–64–000. 

Applicants: Westar Energy, Inc. and 

Kansas Gas and Electric Company. 

Description: Westar Energy, Inc and 

Kansas Gas and Electric Co submit