alliance info alert dear generation / power marketing executive :
this alliance info alert includes three items of interest :
1 ) the weekly alliance express newsletter
2 ) listing of recent filings at ferc
3 ) timeline for ferc action on california markets ( attached )
alliance of energy suppliers express   december 19 , 2000
inside washington   federal affairs
* * * ferc de - federalizes california markets , adopts other structural reforms * * *
at a special meeting friday afternoon , ferc unanimously approved its eagerly
awaited final order reforming the california wholesale markets , adopting the
major outlines of its november 1 proposed order and sending back to
california the responsibility for addressing state - related matters . at the
same time , ferc deferred consideration of retroactive refund issues as well
as the imposition of region - wide price caps . ferc reiterated their earlier
conclusions that under certain circumstances , california ratepayers were
subjected to unjust and unreasonable power rates due to california ' s
" seriously flawed " market structure and rules in conjunction with tight
demand and supply conditions throughout the west .
ferc adopted the november proposal to eliminate , effective immediately , the
state ' s mandatory requirement that the state ' s investor - owned utilities buy
and sell electricity through the px , and allow these utilities to purchase
electricity through forward contracts and other alternative mechanisms to
manage supply risks . ferc terminated the px ' s rate schedules effective at
the close of business on april 30 , 2001 . in effect , as chairman james
hoecker stated , the order de - federalizes 60 percent of the california
wholesale market established under the state ' s restructuring law , returning
ratemaking authority over company - owned generation to the california public
utilities commission ( cpuc ) .
the agency also modified the effective period of the $ 150 / mwh " soft cap "
proposal , limiting its application through april 2001 , whereupon a
" comprehensive and systematic monitoring and mitigation program which
incorporates appropriate thresholds , screen and mitigation measures " must be
in place . in a related move , ferc ordered a technical conference early next
year to develop such a program by march 1 , 2001 , so that these measures can
be place by the may 1 , deadline .
* * * energy secretary issues order to power generators and marketers to bolster
california ' s supplies * * *
energy secretary bill richardson has responded to the severely constrained
power supply situation in california by issuing an order , pursuant to section
202 ( c ) of the federal power act , to require generators and marketers to make
power available to meet the state ' s electricity needs . the emergency
directive requires that , if the california independent system operator ( iso )
certifies that there is an inadequate supply of electricity , certain
suppliers would be required to make power available to the iso if they have
power available in excess of the amount needed to satisfy service to firm
customers . those suppliers that have provided power to the california power
exchange ( px ) and the iso over the last 30 days that have firm capacity
available would be subject to the order .
under the order , the iso is required to provide notice to each supplier
subject to the order of the amount and type of service requested by 9 : 00 pm
est on the day before the requested service . the iso must , to the extent
feasible , allocate the requests in proportion to the amount of each
supplier ' s available power . the price for the power provided pursuant to the
order will be set by an agreement between the iso and the supplier . if no
agreement is reached , ferc is to determine the just and reasonable rate at a
later date . the order will remain in effect until 3 : 00 am est on december
21 , 2000 unless modified .
* * * epa sets plans to regulate plants ' mercury emissions * * *
epa administrator carol browner , in a long - awaited announcement , indicated
last week that the administration will require reductions of mercury
emissions from coal - and oil - fired power plants . the agency stated that it
plans to propose new regulations in december 2003 , and hopes to finalize new
rules by december 2004 .
in the wake of the decision , eei called on epa to make certain that any
program to control utilities ' mercury emissions be based on the best
scientific information available in order to assure the protection of public
health . " eei urges epa to maintain its commitment to resolving the key
scientific and technological issues , " said paul bailey , eei vice president ,
environmental affairs . given these uncertainties , eei is disappointed that
the regulatory determination includes statements regarding public health
threats and hazards that are unsupported by current science , " said mr . bailey .
" in the meantime , the electric power industry will continue to work with all
stakeholders to determine the extent to which additional mercury reductions
from power plants may be needed , and how those cuts should be achieved , " mr .
bailey concluded .
mergers & acquisitions
* * * calpine completes acquisition of emi power assets * * *
calpine corporation has announced that it has completed the acquisition of
power assets from energy management , inc . ( emi ) . in the deal , calpine
acquired the remaining interest in three recently constructed , combined - cycle
power generating facilities located in new england , as well as a joint
marketing venture between calpine and emi . prior to the transaction , calpine
held a 50 percent net interest in the projects .
" we are very pleased to have completed the acquisition of these new and
highly efficient power plants . the dighton , tiverton , and rumford facilities
were among the first merchant power plants to enter commercial operation in
new england , " said calpine senior vice president bob alff . " combined with
our other announced project in the northeast , we have created a coordinated
system of low - cost assets , with excellent geographic diversity , to provide
power to a very attractive new england market , " added alff .
* * * exelon completes acquisition of 49 . 9 percent of sithe * * *
exelon corporation and sithe energies have announced the completion of
exelon ' s acquisition of 49 . 9 percent of the stock of sithe . the completion
of the acquisition finalizes an agreement in which peco energy company agreed
to purchase 49 . 9 percent of sithe ' s assets in north america for $ 682
million . peco has since merged with unicom corporation to form exelon
corporation .
under the terms of the agreement , exelon has the option to purchase the
remaining 50 . 1 percent of sithe within two to five years at a price based on
prevailing market conditions when the purchase option is exercised . exelon
and sithe will continue to operate independently , said the companies .
energy data
* * * weekly electric output ( week 50 ) * * *
electric output reached 74 , 737 gwh for the week ending december 9 ( week 50 ) ,
with the highest increase over 1999 levels in the mid - atlantic region , which
had a 15 . 8 percent increase over 1999 . looking at year - to - date information ,
the pacific southeast leads the nation in growth of output . for more
information , email alliance @ eei . org .
who ' s who
* * * allegheny energy announces leadership change * * *
allegheny energy , inc . this week announced the appointment of michael
morrell , senior vice president and cfo , as president of its unregulated
supply business , allegheny energy supply company , effective february 1 ,
2001 . morrell will replace peter skrgic , current president , who will be
retiring on that date after 37 years of service to the company .
in his new position , mr . morrell will direct and continue the growth of
allegheny ' s energy supply business , which operates and markets competitive
retail and wholesale electric generation throughout the eastern us .
additionally , morrell will identify new opportunities to expand the company ' s
generation holdings , announced a press release .
the alliance express is a free news service sponsored by the alliance of
energy suppliers . this document can be redistributed . please send
questions , comments , or requests to alliance @ eei . org , or telephone
202 / 508 - 5680 .
* * * due to the holidays , the alliance express will not be published next
tuesday , december 26 .
= = recent ferc filings = =
( 1 ) rto developments
* the following entities filed comments regarding the california wholesale
electric market . elo 0 - 95 - 000 , et . al . filed december 13 , 2000 .
- american public power assoc . : " market power : will we know it when we see
it ? the california experience "
- southern california edison co . : " proof that soft price caps do not result
in lawful rates " and request for rehearing
- southern california edison co . : request for immediate modification of the
december 8 , 2000 order
- san diego gas & electric : motion to clarify the record
* the following entities filed motions for an immediate modification and to
intervene regarding the commission ' s emergency order december 8 approving the
ca iso ' s tariff amendments . erol - 607 - 000 , ero 0 - 95 - 000 et . al . filed
december 13 , 2000 .
- western power trading forum
- reliant energy power generation
- pacific gas and electric
- ca iso
- dynegy power marketing
* southern energy companies filed a supplemental protest regarding pjm ' s
order 2000 compliance filing . rtol - 2 - 000 . filed december 14 , 2000 .
( 2 ) oatt / transmission
* ugi utilities filed an interconnection agreement with allegheny energy
supply co . erol - 617 - 000 . comments due by december 28 , 2000 .
* public service company of new mexico filed proposed revisions to its ferc
electric tariff , a statement of policy and code of conduct governing the
relationship between itself and wholesale power marketing affiliates and a
notification of a change in status relating to its authorization to sell
power at market - based rates . erol - 615 - 000 . comments due by december 28 ,
2000 .
* american electric power service corp . ( aep ) filed an executed
interconnection agreement between indiana michigan power co . and duke energy
berrien . the agreement is pursuant to aep companies ' oatt . erol - 626 - 000 .
comments due by december 29 , 2000 .
* commonwealth edison co . filed revisions to its oatt to reflect the
creation of a new generation subsidiary of excelon corp . , comed ' s holding
company . erol - 628 - 000 . comments due by december 29 , 2000 .
* detroit edison company filed a service agreement for network integration
transmission service under the joint oatt between itself and consumers
energy . the service agreement is between itself and nordic marketing .
erol - 622 - 000 . comments due by december 28 , 2000 .
* detroit edison company filed service agreements for short - term firm and
non - firm point - to - point transmission service under the joint oatt between
itself and consumers energy . the service agreement is between itself and h . q .
energy services . erol - 621 - 000 . comments due by december 28 , 2000 .
* louisiana generating filed a motion to intervene and protest regarding
southwestern electric power company ' s restated and amended electric system
interconnection agreement between southwestern and louisiana generating .
erol - 504 - 000 . filed december 13 , 2000 .
* alliant energy corporate services filed a response to several protests
regarding its proposed amended oatt . erol - 312 - 000 . filed december 14 , 2000 .
* electricities of north carolina , piedmont municipal power agency and the
cities of orangeburg and seneca , sc filed a motion to intervene and protest
regarding duke energy , carolina power & light and south carolina electric &
gas ' proposed accounting and rate treatment of start - up costs associated with
establishing a new rto . elol - 13 - 000 . filed december 14 , 2000 .
* southern company services filed a proposed amendment to its oatt in order
to incorporate creditworthiness criteria , interconnection procedures and
source and sink requirements . erol - 668 - 000 . filed december 14 , 2000 .
* bonneville power administration filed a petition for declaratory order
stating that its proposed oatt satisfies the commission ' s reciprocity
compliance principles . njol - 1 - 000 . filed december 14 , 2000 .
* american transmission co . filed proposed open access transmission rates
and requested expedited consideration . erol - 677 - 000 . filed december 15 ,
2000 .
( 3 ) market complaints
* h . q . energy services filed for an order directing the ny iso to restore
the original market clearing prices for energy on may 8 , 2000 . elol - 19 - 000 .
comments due january 2 , 2001 .
* new england power co . filed an answer to the rhode island attorney
general ' s protest regarding the application of the joint owners of the
undivided interest in the millstone 3 nuclear plant to transfer ownership to
the dominion applicants . eco 0 - 137 - 000 and ero 0 - 3639 - 000 . filed december 13 ,
2000 .
( 4 ) mergers / corporate restructuring
( 5 ) miscellaneous
* ca iso filed an amendment to schedule 1 of the participating generator
agreement between ca iso and sierra pacific industries . erol - 619 - 000 .
comments due by december 28 , 2000 .
* automated power exchange filed a new rate schedule under which it will
provide its auction and scheduling service in its california market .
erol - 658 - 000 . filed december 14 , 2000 .
* automated power exchange filed a new rate schedule under which it will
provide its auction and scheduling service in a new geographic market , known
as the apx midwest market . erol - 659 - 000 . filed december 14 , 2000 .
nancy tarr
manager , business development
ntarr @ eei . org
202 - 508 - 5680
- timeline . doc
alliance info alert
dear generation / power marketing executive :
this alliance info alert includes three items of interest :
1 ) the weekly alliance express newsletter
2 ) listing of recent filings at ferc
3 ) timeline for ferc action on california markets ( attached )
alliance of energy suppliers express   december 19 , 2000
inside washington   federal affairs
* * * ferc de - federalizes california markets , adopts other structural reforms * * *
at a special meeting friday afternoon , ferc unanimously approved its eagerly
awaited final order reforming the california wholesale markets , adopting the
major outlines of its november 1 proposed order and sending back to
california the responsibility for addressing state - related matters . at the
same time , ferc deferred consideration of retroactive refund issues as well
as the imposition of region - wide price caps . ferc reiterated their earlier
conclusions that under certain circumstances , california ratepayers were
subjected to unjust and unreasonable power rates due to california ' s
" seriously flawed " market structure and rules in conjunction with tight
demand and supply conditions throughout the west .
ferc adopted the november proposal to eliminate , effective immediately , the
state ' s mandatory requirement that the state ' s investor - owned utilities buy
and sell electricity through the px , and allow these utilities to purchase
electricity through forward contracts and other alternative mechanisms to
manage supply risks . ferc terminated the px ' s rate schedules effective at
the close of business on april 30 , 2001 . in effect , as chairman james
hoecker stated , the order de - federalizes 60 percent of the california
wholesale market established under the state ' s restructuring law , returning
ratemaking authority over company - owned generation to the california public
utilities commission ( cpuc ) .
the agency also modified the effective period of the $ 150 / mwh " soft cap "
proposal , limiting its application through april 2001 , whereupon a
" comprehensive and systematic monitoring and mitigation program which
incorporates appropriate thresholds , screen and mitigation measures " must be
in place . in a related move , ferc ordered a technical conference early next
year to develop such a program by march 1 , 2001 , so that these measures can
be place by the may 1 , deadline .
* * * energy secretary issues order to power generators and marketers to bolster
california ' s supplies * * *
energy secretary bill richardson has responded to the severely constrained
power supply situation in california by issuing an order , pursuant to section
202 ( c ) of the federal power act , to require generators and marketers to make
power available to meet the state ' s electricity needs . the emergency
directive requires that , if the california independent system operator ( iso )
certifies that there is an inadequate supply of electricity , certain
suppliers would be required to make power available to the iso if they have
power available in excess of the amount needed to satisfy service to firm
customers . those suppliers that have provided power to the california power
exchange ( px ) and the iso over the last 30 days that have firm capacity
available would be subject to the order .
under the order , the iso is required to provide notice to each supplier
subject to the order of the amount and type of service requested by 9 : 00 pm
est on the day before the requested service . the iso must , to the extent
feasible , allocate the requests in proportion to the amount of each
supplier ' s available power . the price for the power provided pursuant to the
order will be set by an agreement between the iso and the supplier . if no
agreement is reached , ferc is to determine the just and reasonable rate at a
later date . the order will remain in effect until 3 : 00 am est on december
21 , 2000 unless modified .
* * * epa sets plans to regulate plants ' mercury emissions * * *
epa administrator carol browner , in a long - awaited announcement , indicated
last week that the administration will require reductions of mercury
emissions from coal - and oil - fired power plants . the agency stated that it
plans to propose new regulations in december 2003 , and hopes to finalize new
rules by december 2004 .
in the wake of the decision , eei called on epa to make certain that any
program to control utilities ' mercury emissions be based on the best
scientific information available in order to assure the protection of public
health . " eei urges epa to maintain its commitment to resolving the key
scientific and technological issues , " said paul bailey , eei vice president ,
environmental affairs . given these uncertainties , eei is disappointed that
the regulatory determination includes statements regarding public health
threats and hazards that are unsupported by current science , " said mr . bailey .
" in the meantime , the electric power industry will continue to work with all
stakeholders to determine the extent to which additional mercury reductions
from power plants may be needed , and how those cuts should be achieved , " mr .
bailey concluded .
mergers & acquisitions
* * * calpine completes acquisition of emi power assets * * *
calpine corporation has announced that it has completed the acquisition of
power assets from energy management , inc . ( emi ) . in the deal , calpine
acquired the remaining interest in three recently constructed , combined - cycle
power generating facilities located in new england , as well as a joint
marketing venture between calpine and emi . prior to the transaction , calpine
held a 50 percent net interest in the projects .
" we are very pleased to have completed the acquisition of these new and
highly efficient power plants . the dighton , tiverton , and rumford facilities
were among the first merchant power plants to enter commercial operation in
new england , " said calpine senior vice president bob alff . " combined with
our other announced project in the northeast , we have created a coordinated
system of low - cost assets , with excellent geographic diversity , to provide
power to a very attractive new england market , " added alff .
* * * exelon completes acquisition of 49 . 9 percent of sithe * * *
exelon corporation and sithe energies have announced the completion of
exelon ' s acquisition of 49 . 9 percent of the stock of sithe . the completion
of the acquisition finalizes an agreement in which peco energy company agreed
to purchase 49 . 9 percent of sithe ' s assets in north america for $ 682
million . peco has since merged with unicom corporation to form exelon
corporation .
under the terms of the agreement , exelon has the option to purchase the
remaining 50 . 1 percent of sithe within two to five years at a price based on
prevailing market conditions when the purchase option is exercised . exelon
and sithe will continue to operate independently , said the companies .
energy data
* * * weekly electric output ( week 50 ) * * *
electric output reached 74 , 737 gwh for the week ending december 9 ( week 50 ) ,
with the highest increase over 1999 levels in the mid - atlantic region , which
had a 15 . 8 percent increase over 1999 . looking at year - to - date information ,
the pacific southeast leads the nation in growth of output . for more
information , email alliance @ eei . org .
who ' s who
* * * allegheny energy announces leadership change * * *
allegheny energy , inc . this week announced the appointment of michael
morrell , senior vice president and cfo , as president of its unregulated
supply business , allegheny energy supply company , effective february 1 ,
2001 . morrell will replace peter skrgic , current president , who will be
retiring on that date after 37 years of service to the company .
in his new position , mr . morrell will direct and continue the growth of
allegheny ' s energy supply business , which operates and markets competitive
retail and wholesale electric generation throughout the eastern us .
additionally , morrell will identify new opportunities to expand the company ' s
generation holdings , announced a press release .
the alliance express is a free news service sponsored by the alliance of
energy suppliers . this document can be redistributed . please send
questions , comments , or requests to alliance @ eei . org , or telephone
202 / 508 - 5680 .
* * * due to the holidays , the alliance express will not be published next
tuesday , december 26 .
= = recent ferc filings = =
( 1 ) rto developments
* the following entities filed comments regarding the california wholesale
electric market . elo 0 - 95 - 000 , et . al . filed december 13 , 2000 .
- american public power assoc . : " market power : will we know it when we see
it ? the california experience "
- southern california edison co . : " proof that soft price caps do not result
in lawful rates " and request for rehearing
- southern california edison co . : request for immediate modification of the
december 8 , 2000 order
- san diego gas & electric : motion to clarify the record
* the following entities filed motions for an immediate modification and to
intervene regarding the commission ' s emergency order december 8 approving the
ca iso ' s tariff amendments . erol - 607 - 000 , ero 0 - 95 - 000 et . al . filed
december 13 , 2000 .
- western power trading forum
- reliant energy power generation
- pacific gas and electric
- ca iso
- dynegy power marketing
* southern energy companies filed a supplemental protest regarding pjm ' s
order 2000 compliance filing . rtol - 2 - 000 . filed december 14 , 2000 .
( 2 ) oatt / transmission
* ugi utilities filed an interconnection agreement with allegheny energy
supply co . erol - 617 - 000 . comments due by december 28 , 2000 .
* public service company of new mexico filed proposed revisions to its ferc
electric tariff , a statement of policy and code of conduct governing the
relationship between itself and wholesale power marketing affiliates and a
notification of a change in status relating to its authorization to sell
power at market - based rates . erol - 615 - 000 . comments due by december 28 ,
2000 .
* american electric power service corp . ( aep ) filed an executed
interconnection agreement between indiana michigan power co . and duke energy
berrien . the agreement is pursuant to aep companies ' oatt . erol - 626 - 000 .
comments due by december 29 , 2000 .
* commonwealth edison co . filed revisions to its oatt to reflect the
creation of a new generation subsidiary of excelon corp . , comed ' s holding
company . erol - 628 - 000 . comments due by december 29 , 2000 .
* detroit edison company filed a service agreement for network integration
transmission service under the joint oatt between itself and consumers
energy . the service agreement is between itself and nordic marketing .
erol - 622 - 000 . comments due by december 28 , 2000 .
* detroit edison company filed service agreements for short - term firm and
non - firm point - to - point transmission service under the joint oatt between
itself and consumers energy . the service agreement is between itself and h . q .
energy services . erol - 621 - 000 . comments due by december 28 , 2000 .
* louisiana generating filed a motion to intervene and protest regarding
southwestern electric power company ' s restated and amended electric system
interconnection agreement between southwestern and louisiana generating .
erol - 504 - 000 . filed december 13 , 2000 .
* alliant energy corporate services filed a response to several protests
regarding its proposed amended oatt . erol - 312 - 000 . filed december 14 , 2000 .
* electricities of north carolina , piedmont municipal power agency and the
cities of orangeburg and seneca , sc filed a motion to intervene and protest
regarding duke energy , carolina power & light and south carolina electric &
gas ' proposed accounting and rate treatment of start - up costs associated with
establishing a new rto . elol - 13 - 000 . filed december 14 , 2000 .
* southern company services filed a proposed amendment to its oatt in order
to incorporate creditworthiness criteria , interconnection procedures and
source and sink requirements . erol - 668 - 000 . filed december 14 , 2000 .
* bonneville power administration filed a petition for declaratory order
stating that its proposed oatt satisfies the commission ' s reciprocity
compliance principles . njol - 1 - 000 . filed december 14 , 2000 .
* american transmission co . filed proposed open access transmission rates
and requested expedited consideration . erol - 677 - 000 . filed december 15 ,
2000 .
( 3 ) market complaints
* h . q . energy services filed for an order directing the ny iso to restore
the original market clearing prices for energy on may 8 , 2000 . elol - 19 - 000 .
comments due january 2 , 2001 .
* new england power co . filed an answer to the rhode island attorney
general ' s protest regarding the application of the joint owners of the
undivided interest in the millstone 3 nuclear plant to transfer ownership to
the dominion applicants . eco 0 - 137 - 000 and ero 0 - 3639 - 000 . filed december 13 ,
2000 .
( 4 ) mergers / corporate restructuring
( 5 ) miscellaneous
* ca iso filed an amendment to schedule 1 of the participating generator
agreement between ca iso and sierra pacific industries . erol - 619 - 000 .
comments due by december 28 , 2000 .
* automated power exchange filed a new rate schedule under which it will
provide its auction and scheduling service in its california market .
erol - 658 - 000 . filed december 14 , 2000 .
* automated power exchange filed a new rate schedule under which it will
provide its auction and scheduling service in a new geographic market , known
as the apx midwest market . erol - 659 - 000 . filed december 14 , 2000 .
nancy tarr
manager , business development
ntarr @ eei . org
202 - 508 - 5680
- timeline . doc