alliance info alert - ferc reporting attached is a summary of recent ferc activities ( pdf file ) and the weekly
alliance express . the following is a summary of the most recent ferc meeting ,
followed by a listing of the most recent ferc filings .
in a brief meeting yesterday , ferc approved a final rule adopting section 203
merger filing requirements , generally as proposed , and extended the existing
nyiso bid cap in its non - spinning reserves market and the related mandatory
bidding requirement until such time that the new york market can be
determined to be " workably competitive . " at the same time , ferc ordered a
technical conference to explore changes to the nyiso reserves market , and
urged market participants to reach a consensus on a preferred solution , next
steps , and deadlines for resolution / implementation . additional details are
provided below .
ferc updates , streamlines merger filing process
ferc unanimously approved its proposed order revising the reporting
requirements for mergers . however , comm . hebert did so with reservations , as
discussed below . commission staff stated that the order closely follows the
notice of proposed rulemaking previously issued , but adds more detail and
more certainty to the industry . staff stated that the order is improved over
the proposed rule because it includes exemptions from reporting for certain
entities and it more precisely defines geographical areas and products .
according to ferc , the draft order :
- revises the commission ' s filing requirements to reflect existing merger
policy based on ferc ' s 1996 merger policy guidelines ;
- provides more detail for the industry in developing competitive market
analyses . the rule continues the existing screening process for mergers with
potential horizontal competitive concerns . in addition , the rule establishes
informational requirements for vertical competitive analyses .
- streamlines filing requirements for transactions that do not raise
competitive concerns ; and
- reduces the industry ' s regulatory burden by eliminating outdated filing
requirements .
the rule will take effect 60 days after its publication in the federal
register .
commissioner reaction :
comm . hebert expressed reservations that , although he was voting for the
rule , ferc should not be duplicating the department of justice ( doj ) and the
federal trade commission ( ftc ) market concentration analyses and that ferc
should follow the lead of anti - trust enforcement officials , who could also
analyze mergers faster and more confidentially . he also stated that ferc
should review the filings after the doj or the ftc review them , not before ,
and that there should be a definite time frame for review . hebert did
mention that he was pleased that rtos and the disposition of transmission
assets would be exempt , that ancillary services would be considered as a
separate product and that the final rule opens the door for alternative
market analysis .
comm . breathitt supported the final rule , stating that it should expedite the
approval process and that the regulatory burden should be eased due to the
fact that older , irrelevant requirements have been dropped . she indicated
that the final rule balanced the need for speedy decisions while protecting
the public interest by stating that the process will be " efficient yet
sufficient " . the commissioner said that she was pleased the final rule
addressed technical issues such as computer modeling as well as retail
competition and one of her main concerns , confidentiality .
comm . massey fully supported the final rule , emphasizing that it would
improve response time , lessen the need to ask for more data and allow the
industry to better predict commission actions . like commissioner breathitt ,
massey was pleased that the order will allow market modeling analysis that
will better enable ferc to evaluate market concentration and allow applicants
to point to other factors when concentration appears too high . massey also
stated that the new rule includes the ability to address many of ferc ' s
concerns , such as future mergers when they occur in succession , retail
competition , mitigation by the enlargement of markets through rtos and
analysis of ancillary services . in sum , he averred that the order will
provide ferc with the tools it needs for accurate analysis , while taking into
consideration the rapid changes in the industry .
chairman hoecker also voiced his support and noted that he felt that this was
a very important rule . in response to comm . hebert , chairman hoecker said
that the doj and ftc actually wait for ferc ' s report before issuing their
own , that the anti - trust enforcement agencies rely on ferc ' s expertise when
reviewing mergers in the electric and gas industries . there is a major
positive connection between industry consolidation and rtos and that both are
reconfiguring the markets and effect how they work , he noted . because the
rtos enlarge the size of the subject market , he indicated , rtos will help to
preserve competition . therefore , more and larger rtos should allow for more
mergers , he said . the chairman cautioned that this is not to imply that
joining an rto is a requirement for a merger , but that it would certainly be
viewed favorably .
nyiso bid caps extended until ancillary service market shown to be workably
competitive
in a 3 - 1 decision , with comm . hebert dissenting , ferc extended the existing
nyiso bid cap in its non - spinning reserves market and the related mandatory
bidding requirement until such time as that market can be determined to be
" workably competitive . " at the same time , ferc ordered a technical
conference to explore changes to the nyiso reserves market , and urged market
participants to reach a consensus on a preferred solution , next steps , and
deadlines for resolution / implementation .
in so doing , ferc rejected certain aspects of nyiso ' s september 1 and 8 , 2000
compliance filing , submitted pursuant to its may 31 , 2000 order imposing a
temporary bid cap through october 31 . the iso ' s efforts to correct market
flaws identified in the order and further strengthen market performance had
not yet satisfied the commission ' s directives , ferc concluded . ferc found
that while nyiso has achieved solid progress in certain areas , overall the
iso has not shown sufficient improvement to warrant raising and then
gradually lifting the temporary bid cap in the iso ' s non - spinning reserve
market by april 2001 , as the iso requested .
commissioner reaction :
comms . hoecker , massey and breathitt all endorsed the order as an " imperfect
solution , " yet a pragmatic approach toward resolving the flaws plaguing the
iso ' s market . comm . hebert faulted the commission for squandering an
opportunity to incentivize additional supply by lifting the price controls .
hoecker and breathitt joined hebert in expressing disappointment in the lack
of the iso ' s progress , but contended that significant outstanding issues must
be resolved before the bid cap can be lifted .
in other action , ferc accepted nyiso ' s and nepool ' s proposed emergency energy
transaction agreement , allowing nyiso and iso - ne to provide emergency service
to each other ( ero 0 - 3638 - 000 ) ;
stricken items included cae - 16 ( nepool ' s 64 th agreement amendment proposing
the elimination of in service and instituting new rules governing certain
import transactions ( ero 0 - 3577 - 000 ) ) .
= = recent ferc filings = =
( 1 ) rto developments
* iso ne submitted its changes to market rule 17 , market monitoring ,
reporting and market power mitigation , in compliance with the commission ' s
july 26 , 2000 order . erol - 368 - 000 . filed november 1 , 2000 .
* iso ne submitted its special interim market rule in compliance with the
commission ' s july 26 , 2000 order . ero 0 - 369 - 000 . filed november 1 , 2000 .
* illinois industrial energy consumers filed to intervene regarding dynegy ' s
filing to request approval for the withdrawal of the illinois power co . from
the miso . erol - 123 - 000 . filed november 6 , 2000 .
* el segundo power filed a motion " requesting order on request for rehearing
by date certain " in complaint that challenges the ca iso ' s ability to set the
rates for the energy that it can compel generators to produce for reliability
under its standard form contract . ero 0 - 1830 - 001 . filed november 3 , 2000 .
* ca iso filed an unbundled grid management charge in order to recover its
administrative and operating costs . erol - 313 - 000 . comments due by november
22 , 2000 .
* nepool submitted supplemental information related to its filing of the
sixty - fourth agreement amending the nepool agreement , which proposed the
elimination of in service . ero 0 - 3577 - 000 . comments due by november 14 , 2000 .
( 2 ) oatt / transmission
* duke energy filed an amendment to its catawba interconnection agreement
with north carolina electric membership coop . erol - 282 - 000 . comments due by
november 21 , 2000 .
* duke energy filed an amendment to its catawba interconnection agreement
with the saluda river electric coop . erol - 281 - 000 . comments due by november
21 , 2000 .
* duke energy filed an amendment to its catawba interconnection agreement
with north carolina municipal power agency no . 1 . erol - 280 - 000 . comments
due by november 21 , 2000 .
* alliant energy , on behalf of ies utilities , interstate power and wisconsin
power and light , filed new rates under its oatt to reflect the transfer of
certain transmission facilities to american transmission co . erol - 312 - 000 .
comments due by november 22 , 2000 .
* wolverine power supply coop . filed to change its rate schedule ferc no . 4 ,
wholesale service to member distribution coops , to make the debt
restructuring charge applicable to all energy delivered to its member coops ,
to add standby service rates and to remove references to entities that no
longer exist . erol - 285 - 000 . comments due by november 21 , 2000 .
* wolverine power supply coop . filed an amendment to its oatt to accommodate
michigan retail choice and to add delivery scheduling and balancing service
as a new service for generators interconnected to its transmission system .
erol - 286 - 000 . comments due by november 21 , 2000 .
* potomac electric power filed a revised attachment h - 9 to the pjm oatt
reducing the other supporting facilities charge for lower voltage deliveries
in the pepco zone of pjm to southern maryland electric coop . erol - 336 - 000 .
comments due by november 22 , 2000 .
* wolf hills energy filed a motion to intervene out of time to support the
interconnection and operation agreement between itself and american electric
power service corp . and to deny the protest of tva . ero 0 - 3688 - 000 . filed
november 6 , 2000 .
( 3 ) complaints
* aep and southwest power pool each filed an answer to enron ' s motion for
summary disposition regarding enron ' s complaint , in response to aep ' s updated
market analysis , that aep service corp . administered the aep oasis and tariff
in a manner favoring aep ' s merchant function . er 96 - 2495 - 015 , et . al . filed
november 6 , 2000 .
* potomac electric power ( pepco ) and the southern parties filed a motion to
answer the protest of southern maryland electric coop and panda - brandywine
regarding pepco ' s divestiture of generation assets pursuant to restructuring
initiatives in maryland and the district of columbia . eco 0 - 141 - 000 and
ero 0 - 3727 - 000 . filed november 6 , 2000 .
* dunkirk power , huntley power and oswego power filed a motion to answer
protests filed by numerous entities regarding ferc ' s jurisdiction over
station power . elo 0 - 113 - 000 . filed november 6 , 2000 .
* allegheny energy supply and ppl montour filed an answer to protests
regarding their purchase of certain jurisdictional facilities . ero 0 - 3727 - 000
and eco 0 - 141 - 000 . filed november 6 , 2000 .
( 4 ) mergers / corporate restructuring
( 5 ) miscellaneous
= = other news = =
* s & p revises miso outlook to negative
- allianceexpressl 10700 . doc
- ffl 10300 . pdf
alliance info alert - ferc reporting
attached is a summary of recent ferc activities ( pdf file ) and the weekly
alliance express . the following is a summary of the most recent ferc meeting ,
followed by a listing of the most recent ferc filings .
in a brief meeting yesterday , ferc approved a final rule adopting section 203
merger filing requirements , generally as proposed , and extended the existing
nyiso bid cap in its non - spinning reserves market and the related mandatory
bidding requirement until such time that the new york market can be
determined to be " workably competitive . " at the same time , ferc ordered a
technical conference to explore changes to the nyiso reserves market , and
urged market participants to reach a consensus on a preferred solution , next
steps , and deadlines for resolution / implementation . additional details are
provided below .
ferc updates , streamlines merger filing process
ferc unanimously approved its proposed order revising the reporting
requirements for mergers . however , comm . hebert did so with reservations , as
discussed below . commission staff stated that the order closely follows the
notice of proposed rulemaking previously issued , but adds more detail and
more certainty to the industry . staff stated that the order is improved over
the proposed rule because it includes exemptions from reporting for certain
entities and it more precisely defines geographical areas and products .
according to ferc , the draft order :
- revises the commission ' s filing requirements to reflect existing merger
policy based on ferc ' s 1996 merger policy guidelines ;
- provides more detail for the industry in developing competitive market
analyses . the rule continues the existing screening process for mergers with
potential horizontal competitive concerns . in addition , the rule establishes
informational requirements for vertical competitive analyses .
- streamlines filing requirements for transactions that do not raise
competitive concerns ; and
- reduces the industry ' s regulatory burden by eliminating outdated filing
requirements .
the rule will take effect 60 days after its publication in the federal
register .
commissioner reaction :
comm . hebert expressed reservations that , although he was voting for the
rule , ferc should not be duplicating the department of justice ( doj ) and the
federal trade commission ( ftc ) market concentration analyses and that ferc
should follow the lead of anti - trust enforcement officials , who could also
analyze mergers faster and more confidentially . he also stated that ferc
should review the filings after the doj or the ftc review them , not before ,
and that there should be a definite time frame for review . hebert did
mention that he was pleased that rtos and the disposition of transmission
assets would be exempt , that ancillary services would be considered as a
separate product and that the final rule opens the door for alternative
market analysis .
comm . breathitt supported the final rule , stating that it should expedite the
approval process and that the regulatory burden should be eased due to the
fact that older , irrelevant requirements have been dropped . she indicated
that the final rule balanced the need for speedy decisions while protecting
the public interest by stating that the process will be " efficient yet
sufficient " . the commissioner said that she was pleased the final rule
addressed technical issues such as computer modeling as well as retail
competition and one of her main concerns , confidentiality .
comm . massey fully supported the final rule , emphasizing that it would
improve response time , lessen the need to ask for more data and allow the
industry to better predict commission actions . like commissioner breathitt ,
massey was pleased that the order will allow market modeling analysis that
will better enable ferc to evaluate market concentration and allow applicants
to point to other factors when concentration appears too high . massey also
stated that the new rule includes the ability to address many of ferc ' s
concerns , such as future mergers when they occur in succession , retail
competition , mitigation by the enlargement of markets through rtos and
analysis of ancillary services . in sum , he averred that the order will
provide ferc with the tools it needs for accurate analysis , while taking into
consideration the rapid changes in the industry .
chairman hoecker also voiced his support and noted that he felt that this was
a very important rule . in response to comm . hebert , chairman hoecker said
that the doj and ftc actually wait for ferc ' s report before issuing their
own , that the anti - trust enforcement agencies rely on ferc ' s expertise when
reviewing mergers in the electric and gas industries . there is a major
positive connection between industry consolidation and rtos and that both are
reconfiguring the markets and effect how they work , he noted . because the
rtos enlarge the size of the subject market , he indicated , rtos will help to
preserve competition . therefore , more and larger rtos should allow for more
mergers , he said . the chairman cautioned that this is not to imply that
joining an rto is a requirement for a merger , but that it would certainly be
viewed favorably .
nyiso bid caps extended until ancillary service market shown to be workably
competitive
in a 3 - 1 decision , with comm . hebert dissenting , ferc extended the existing
nyiso bid cap in its non - spinning reserves market and the related mandatory
bidding requirement until such time as that market can be determined to be
" workably competitive . " at the same time , ferc ordered a technical
conference to explore changes to the nyiso reserves market , and urged market
participants to reach a consensus on a preferred solution , next steps , and
deadlines for resolution / implementation .
in so doing , ferc rejected certain aspects of nyiso ' s september 1 and 8 , 2000
compliance filing , submitted pursuant to its may 31 , 2000 order imposing a
temporary bid cap through october 31 . the iso ' s efforts to correct market
flaws identified in the order and further strengthen market performance had
not yet satisfied the commission ' s directives , ferc concluded . ferc found
that while nyiso has achieved solid progress in certain areas , overall the
iso has not shown sufficient improvement to warrant raising and then
gradually lifting the temporary bid cap in the iso ' s non - spinning reserve
market by april 2001 , as the iso requested .
commissioner reaction :
comms . hoecker , massey and breathitt all endorsed the order as an " imperfect
solution , " yet a pragmatic approach toward resolving the flaws plaguing the
iso ' s market . comm . hebert faulted the commission for squandering an
opportunity to incentivize additional supply by lifting the price controls .
hoecker and breathitt joined hebert in expressing disappointment in the lack
of the iso ' s progress , but contended that significant outstanding issues must
be resolved before the bid cap can be lifted .
in other action , ferc accepted nyiso ' s and nepool ' s proposed emergency energy
transaction agreement , allowing nyiso and iso - ne to provide emergency service
to each other ( ero 0 - 3638 - 000 ) ;
stricken items included cae - 16 ( nepool ' s 64 th agreement amendment proposing
the elimination of in service and instituting new rules governing certain
import transactions ( ero 0 - 3577 - 000 ) ) .
= = recent ferc filings = =
( 1 ) rto developments
* iso ne submitted its changes to market rule 17 , market monitoring ,
reporting and market power mitigation , in compliance with the commission ' s
july 26 , 2000 order . erol - 368 - 000 . filed november 1 , 2000 .
* iso ne submitted its special interim market rule in compliance with the
commission ' s july 26 , 2000 order . ero 0 - 369 - 000 . filed november 1 , 2000 .
* illinois industrial energy consumers filed to intervene regarding dynegy ' s
filing to request approval for the withdrawal of the illinois power co . from
the miso . erol - 123 - 000 . filed november 6 , 2000 .
* el segundo power filed a motion " requesting order on request for rehearing
by date certain " in complaint that challenges the ca iso ' s ability to set the
rates for the energy that it can compel generators to produce for reliability
under its standard form contract . ero 0 - 1830 - 001 . filed november 3 , 2000 .
* ca iso filed an unbundled grid management charge in order to recover its
administrative and operating costs . erol - 313 - 000 . comments due by november
22 , 2000 .
* nepool submitted supplemental information related to its filing of the
sixty - fourth agreement amending the nepool agreement , which proposed the
elimination of in service . ero 0 - 3577 - 000 . comments due by november 14 , 2000 .
( 2 ) oatt / transmission
* duke energy filed an amendment to its catawba interconnection agreement
with north carolina electric membership coop . erol - 282 - 000 . comments due by
november 21 , 2000 .
* duke energy filed an amendment to its catawba interconnection agreement
with the saluda river electric coop . erol - 281 - 000 . comments due by november
21 , 2000 .
* duke energy filed an amendment to its catawba interconnection agreement
with north carolina municipal power agency no . 1 . erol - 280 - 000 . comments
due by november 21 , 2000 .
* alliant energy , on behalf of ies utilities , interstate power and wisconsin
power and light , filed new rates under its oatt to reflect the transfer of
certain transmission facilities to american transmission co . erol - 312 - 000 .
comments due by november 22 , 2000 .
* wolverine power supply coop . filed to change its rate schedule ferc no . 4 ,
wholesale service to member distribution coops , to make the debt
restructuring charge applicable to all energy delivered to its member coops ,
to add standby service rates and to remove references to entities that no
longer exist . erol - 285 - 000 . comments due by november 21 , 2000 .
* wolverine power supply coop . filed an amendment to its oatt to accommodate
michigan retail choice and to add delivery scheduling and balancing service
as a new service for generators interconnected to its transmission system .
erol - 286 - 000 . comments due by november 21 , 2000 .
* potomac electric power filed a revised attachment h - 9 to the pjm oatt
reducing the other supporting facilities charge for lower voltage deliveries
in the pepco zone of pjm to southern maryland electric coop . erol - 336 - 000 .
comments due by november 22 , 2000 .
* wolf hills energy filed a motion to intervene out of time to support the
interconnection and operation agreement between itself and american electric
power service corp . and to deny the protest of tva . ero 0 - 3688 - 000 . filed
november 6 , 2000 .
( 3 ) complaints
* aep and southwest power pool each filed an answer to enron ' s motion for
summary disposition regarding enron ' s complaint , in response to aep ' s updated
market analysis , that aep service corp . administered the aep oasis and tariff
in a manner favoring aep ' s merchant function . er 96 - 2495 - 015 , et . al . filed
november 6 , 2000 .
* potomac electric power ( pepco ) and the southern parties filed a motion to
answer the protest of southern maryland electric coop and panda - brandywine
regarding pepco ' s divestiture of generation assets pursuant to restructuring
initiatives in maryland and the district of columbia . eco 0 - 141 - 000 and
ero 0 - 3727 - 000 . filed november 6 , 2000 .
* dunkirk power , huntley power and oswego power filed a motion to answer
protests filed by numerous entities regarding ferc ' s jurisdiction over
station power . elo 0 - 113 - 000 . filed november 6 , 2000 .
* allegheny energy supply and ppl montour filed an answer to protests
regarding their purchase of certain jurisdictional facilities . ero 0 - 3727 - 000
and eco 0 - 141 - 000 . filed november 6 , 2000 .
( 4 ) mergers / corporate restructuring
( 5 ) miscellaneous
= = other news = =
* s & p revises miso outlook to negative
- allianceexpressl 10700 . doc
- ffl 10300 . pdf