Document ID: FERC-2006-0025-0001
Agency: ferc
Document Type: Notice
Title: Reports and guidance documents; availability, etc.: Electric Quarterly Reports; public utility filing requirements
Posted Date: 2006-01-03T05:00Z

[Federal Register: January 3, 2006 (Volume 71, Number 1)]
[Notices]               
[Page 115-116]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ja06-76]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

 
Order on Intent To Revoke Market-Based Rate Authority

Issued December 22, 2005.
Before Commissioners: Joseph T. Kelliher, Chairman; Nora Mead 
Brownell, and Suedeen G. Kelly

    In the matter of: ER02-2001-004, ER04-0292-000, ER04-0646-000, 
ER02-0388-000, ER03-0827-000, ER98-4301-000, ER02-1324-000, ER03-
0182-000, ER03-0261-000, Electric Quarterly Reports, Bravo Energy 
Resources, LLC, Core Equities, Inc., HC Power Marketing, Maxim 
Energy Partners, LLC, Mountainview Power Company, Mt. Carmel Cogen, 
Inc., Phoenix Energy Associates, L.L.C., USP&G (Pennsylvania), Ltd.

    1. Section 205 of the Federal Power Act (FPA), 16 U.S.C. 824d 
(2000), and 18 CFR part 35 (2005), require, among other things, that 
all rates, terms and conditions of jurisdictional services be filed 
with the Commission. In Order No. 2001, which established revised 
public utility filing requirements for rates, terms and conditions of 
jurisdictional services, the Commission required public utilities, 
including power marketers, to file, among other things, Electric 
Quarterly Reports summarizing the contractual terms and conditions in 
their agreements for all jurisdictional services (including market-
based power sales, cost-based power sales, and transmission service) 
and transaction information (including rates) for short-term and long-
term power sales during the most recent calendar quarter.\1\
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    \1\ Revised Public Utility Filing Requirements, Order No. 2001, 
67 Fed. Reg. 31043, FERC Stats. & Regs. ] 31,127 (April 25, 2002), 
reh'g denied, Order No. 2001-A, 100 FERC ] 61,074, reconsideration 
and clarification denied, Order No. 2001-B, 100 FERC ] 61,342, order 
directing filings, Order No. 2001-C, 101 FERC ] 61,314 (2002).
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    2. Commission staff review of the Electric Quarterly Report 
submittals has revealed that a number of public utilities that 
previously had been granted authority to sell power at market-based 
rates have failed to file Electric Quarterly Reports in 2005. 
Accordingly, this order notifies those public utilities that their 
market-based rate authorizations will be revoked unless they comply 
with the Commission's requirements.
    3. In Order No. 2001, the Commission stated that,

    [i]f a public utility fails to file a[n] Electric Quarterly 
Report (without an appropriate request for extension), or fails to 
report an agreement in a report, that public utility may forfeit its 
market-based rate authority and may be required to file a new 
application for market-based rate authority if it wishes to resume 
making sales at market-based rates.\2\
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    \2\ Order No. 2001, at P 222.
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    4. The Commission further stated that,

    [o]nce this rule becomes effective, the requirement to comply 
with this rule will supersede the conditions in public utilities' 
market-based rate authorizations, and failure to comply with the 
requirements of this rule will subject public utilities to the same 
consequences they would face for not satisfying the conditions in 
their rate authorizations, including possible revocation of their 
authority to make wholesale power sales at market-based rates.\3\

    \3\ Id. at P 223.
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    5. Pursuant to these requirements, the Commission has revoked or 
withdrawn the market-based rate tariffs of several market-based rate 
sellers that failed to submit their Electric Quarterly Report.\4\
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    \4\ See Intent to Revoke Market-Based Rate Authority, 107 FERC ] 
61,310 (2004); Notice of the Revocation of Market-Based Rate 
Tariffs, et al., 69 Fed. Reg. 57,679 (September 27, 2004); Intent to 
Withdraw Market-Based Rate Authority, 104 FERC ] 61,139 (2003); and 
Order on Market-Based Rates, 105 FERC ] 61,219 (2003).
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    6. Commission staff review of the Electric Quarterly Report 
submittals has identified a number of public utilities that previously 
had been granted authority to sell power at market-based rates that 
have failed to file Electric Quarterly Reports. Commission staff has 
made a concerted effort to contact the non-filing utilities listed in 
the caption to remind them of their regulatory obligations. None of the 
public utilities listed in the caption of this order has met those 
obligations.\5\
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    \5\ According to the Commission's records, the companies subject 
to this order last filed their Electric Quarterly Reports in the 
quarters and years shown below:
    Bravo Energy Resources, LLC, Docket No. ER04-0292-000, 2004, 
Quarter 3.
    Core Equities, Inc., Docket No. ER04-0646-000, 2004, Quarter 3.
    HC Power Marketing, Docket No. ER02-0388-000, 2003, Quarter 4.
    Maxim Energy Partners, LLC, Docket No. ER03-0827-000, 2004, 
Quarter 1.
    Mountainview Power Company, Docket No. ER98-4301-000, 2002, 
Quarter 4.
    Mt. Carmel Cogen, Inc., Docket No. ER02-1324-000, 2002, Quarter 
4.
    Phoenix Energy Associates, L.L.C., Docket No. ER03-0182-000, 
2004, Quarter 2.
    USP&G (Pennsylvania), Ltd., Docket No. ER03-0261-000, 2003, 
Quarter 4.
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    7. Accordingly, this order notifies those public utilities that 
their market-based rate authorizations will be revoked unless they 
comply with the Commission's requirements within 15 days of the 
issuance of this order.
    8. In addition, the above-captioned companies' failure to comply 
with their Electric Quarterly Report filing requirements provides a 
basis for the Commission to institute a proceeding under section 206 of 
the FPA, to determine whether these companies may continue to make 
wholesale power sales at market-based rates and whether any refunds 
would be appropriate. In cases where, as here, the Commission 
institutes a section 206 investigation on its own motion, section 
206(b) of the FPA, as recently amended by section 1285 of the Energy 
Policy Act of 2005,\6\ requires that the Commission establish a refund 
effective date that is no earlier than the date of publication of 
notice of its initiation of the investigation, but no later than five 
months subsequent to that date. Consistent with our general policy,\7\ 
we will set the refund effective date as the date publication of notice 
of its initiation of the investigation.
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    \6\ Energy Policy Act of 2005, Public Law No. 109-58, 119 Stat. 
594 (2005).
    \7\ See, e.g., Seminole Electric Cooperative, Inc. v. Florida 
Power & Light Co., 65 FERC ] 61,413 at 63,139 (1993); Canal Electric 
Co., 46 FERC ] 61,153 at 61,539, reh'g denied, 47 FERC ] 61,275 
(1989).
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    9. In the event that any of the above-captioned market-based rate 
sellers have

[[Page 116]]

already filed their required Electric Quarterly Reports in compliance 
with the Commission's requirements, its inclusion herein is 
inadvertent. Any such market-based rate seller is directed, within 15 
days of the date of issuance of this order, to identify itself and 
provide details about its prior filings that establish that it complied 
with the Commission's Electric Quarterly Report filing requirements.
    10. If any of the above-captioned market-based rate sellers does 
not wish to continue having market-based rate authority and does not 
foresee entering into any contracts to sell power at market-based 
rates, it may file a notice of cancellation with the Commission 
pursuant to section 205 of the FPA to cancel its market-based rate 
tariff and relieve it of its obligation to submit further Electric 
Quarterly Reports.

The Commission Orders

    (A) Within 15 days of the date of issuance of this order, each 
public utility listed in the caption of this order shall file all 
delinquent Electric Quarterly Reports. If a public utility fails to 
make this filing, the Commission will revoke that public utility's 
authority to sell power at market-based rates and terminate its 
electric market-based rate tariff. Upon expiration of the filing 
deadline in this order, the Secretary shall promptly issue a notice, 
effective on the date of issuance, listing the public utilities whose 
tariffs have been revoked.
    (B) Pursuant to the authority contained in and subject to the 
jurisdiction conferred upon the Federal Energy Regulatory Commission by 
section 402(a) of the Department of Energy Organization Act and by the 
Federal Power Act, particularly section 206 thereof, and pursuant to 
the Commission's Rules of Practice and Procedure and the regulations 
under the Federal Power Act (18 CFR Chapter I), the Commission hereby 
institutes a proceeding to determine whether the above-captioned 
companies may continue to make wholesale power sales at market-based 
rates and whether any refunds would be appropriate, as discussed in the 
body of this order.
    (C) The Secretary is hereby directed to publish this order in the 
Federal Register.

    By the Commission.
Magalie R. Salas,
Secretary.
 [FR Doc. E5-8159 Filed 12-30-05; 8:45 am]

BILLING CODE 6717-01-P