Harsh Admonition for Over 200 Late Filers of Market Power Updates

FERC on May 25 issued a stern warning to over 200 companies possessing market-pricing authority, but who had become delinquent in filing their triennial updated or revised market power analysis. File the update within 60 days, FERC admonished, or risk losing market-pricing authority. All power sellers dependent on market-pricing authority need to heed this warning with care. FERC also instituted a section 206 investigation to determine whether the rates charged by these companies remain just and reasonable. By cracking down on late filers, FERC hopes to see more companies file the triennial...

Proposed Rule Would Allow e-Filing of Interlocking Directorates, 20 Largest Utility Purchasers Information

Amid a flurry of rulemaking activity at the end of May, FERC issued a Notice of Proposed Rulemaking (NOPR) on May 27, 2005, seeking comments on whether it should provide for the electronic filing of required information on interlocking positions (FERC Form 520 and Form 561) and a public utility's annual report of its twenty largest energy purchasers (FERC Form 566). Without advance FERC approval, Federal Power Act (FPA) § 305(b) prohibits individuals from holding positions as an officer or director at more than one public utility, or from holding officer or director positions simultaneously...

FERC Pushes Ahead on Prevention of Market Abuse and Works to Increase Transparency in Energy Markets

FERC issued a series of proposals and rules May 25 that will streamline and assist FERC in collecting various kinds of information, as well as a change to the calculation of that essential metric: available transfer capacity ("ATC") on the transmission grid. FERC Chair Pat Wood expressed his belief that these orders would benefit both customers, by improving market transparency, and the electric industry, by ensuring that FERC's reporting requirements are "useful and necessary." Two of the issuances included two Notices of Inquiry ("NOI"). In Docket No. RM05-16 , FERC issued a NOI seeking...

Dominion Successfully Integrates into PJM

On May 1, 2005, at 12:01 a.m., Dominion, the largest utility in Virginia , successfully transferred operational control of its 6,000-plus miles of high-voltage transmission lines to PJM Interconnection, LLC (PJM). Dominion's transfer follows the integration of the Duquesne Light transmission system earlier this year, as well as the Commonwealth Edison, American Electric Power, and Dayton Power & Light transmission systems, which occurred in 2004, making PJM the nation's largest regional transmission organization. As a result of the transfer, PJM now manages the dispatch of generation and...

FERC Says the Court Was Confused in Affirming Generator Interconnection Decision on Remand

Responding to a judicial demand that FERC explain an apparent change in policy, FERC decreed on May 6 that its 2002 order providing GenWest LLC (GenWest) transmission credits for network upgrades built to interconnect with Nevada Power Company's (Nevada Power) grid was no change at all. Beginning with FERC's mid-1990s orders mandating that transmission-owning utilities open their systems to third parties, FERC has generally required that the costs of constructing upgrades to interconnect a customer be spread across all network customers, provided the upgrades are beneficial to the...

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