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REQUEST FOR REHEARING OF THE ELECTRIC POWER SUPPLY ASSOCIATION-12/01/00

INTRODUCTION

Pursuant to Section 313 of the Federal Power Act, 16 U.S.C. § 8251 (1994) and Rule 713 of the Commission’s Rules of Practice and Procedure, 18 C.F.R. § 385.713 (2000), the Electric Power Supply Association (“EPSA”) seeks rehearing of the Commission’s November 1st Order in the above captioned proceeding. Specifically, the Commission erred in reversing its decision in its August 23, 2000 Order and setting the refund effective date in Docket No. EL00-98-000 under Section 206 as sixty (60) days after the filing by San Diego Gas & Electric (SDG&E) of its complaint in Docket No. EL00-95-000, i.e. October 2, 2000, rather than sixty days after publication in the Federal Register of the Commission’s investigation in Docket No. EL00-98-000, i.e. October 29, 2000.

The Commission’s reversal violates the unambiguous statutory provisions, and the protections afforded by, Section 206(b) of the Federal Power Act (“FPA”). In its August 23 Order, the Commission clearly rejected SDG&E’s sole request for relief, i.e. the imposition of a $250 MWh price cap. SDG&E did not request a hearing on its request for a $250 MWh price cap. Since the Commission rejected the SDG&E request and SDG&E never requested a hearing to investigate its request, the investigation ordered by the Commission in the August 23 Order was not in response to the complaint filed by SDG&E. Rather, the investigation ordered by the Commission -- a global examination of the California bulk power market -- was clearly on the Commission’s own motion. Therefore, since the Commission instituted this proceeding on its own motion and not on a complaint, FPA Section 206 requires that the refund effective date can be no sooner than 60 days after publication of the notice of investigation in the Federal Register, i.e., October 29, 2000. By changing the refund effective date on November 1st, and setting a new, earlier, refund effective date of October 2, 2000, the Commission exercises discretion not granted by FPA Section 206(b) and unfairly exposes wholesale suppliers to the potential for refunds from October 2 through October 28, 2000, thus defeating the appropriate reliance of EPSA’s member companies on the filed rate during that time.

For these reasons, the Commission should reinstate its initial and correct ruling that the refund effective date be set 60 days after the date of notice of its investigation in the Federal Register, i.e. October 29, 2000.