FERC Filings
REQUEST OF THE ELECTRIC POWER SUPPLY ASSOCIATION FOR REHEARING OF THE COMMISSION’S MARCH 9, 2001 ORDER DIRECTING SELLERS TO PROVIDE REFUNDS OF EXCESS AMOUNTS CHARGED FOR CERTAIN ELECTRIC ENERGY SALES DURING JANUARY 2001 OR, ALTERNATELY, TO PROVIDE FURTHER
REQUEST FOR REHEARING
The Commission erred in the March 9 Order for the following reasons:
The Commission exceeded its authority by ordering refunds of affected suppliers’ market based rates based solely upon their exceeding a “proxy market clearing price,” without finding any evidence that market power or market power abuse has been exercised by the affected supplier or that the affected supplier engaged in anti-competitive behavior;
The Commission acted arbitrarily and capriciously by ordering refunds based on a proxy market clearing price. This price does not represent a market clearing price because it does not recognize that during times of shortages, prices must derive from the customer’s value, not the supplier’s costs, if adequate supplies are to be available; and
The Commission’s order imposes post-hoc price caps that will stifle investment in desperately needed new generation in California and the West.