FERC Filings
MOTION FOR LEAVE TO INTERVENE AND PROTEST OF THE ELECTRIC POWER SUPPLY ASSOCIATION re: ENTERGY SERVICES INC. AND EWO MARKETING LP
INTRODUCTION
Entergy Services, Inc.
and
EWO Marketing LP
Docket No. ER03-583-000
Pursuant to Rules 212 and 214 of the Rules of Practice and Procedure of the Federal Energy Regulatory Commission (FERC or Commission), 18 C.F.R. §§ 212 and 214, the Electric Power Supply Association (EPSA) hereby moves for leave to intervene and protests the above-captioned Application by Entergy Services, Inc. (ESI) and EWO Marketing LP (EWOM) for approval of two power purchase agreements (PPAs) entered into between ESI, on behalf of the Entergy Operating Companies, and EWOM (collectively Entergy). Entergy is requesting approval for the PPAs, stating that the agreements meet the Commission’s standards for sales between affiliates because they are the product of a request for proposals (RFP) that solicited and evaluated the purchase of capacity and energy from both affiliates and non-affiliates in an independent and unbiased manner.
EPSA has concern about the impartiality and objective evaluation of the RFP process conducted by Entergy, and of possible biases inherent in the selection factors and criteria utilized to evaluate the RFP submissions. Any bias within the RFP process could provide the Entergy subsidiaries with anticompetitive advantages in signing affiliate agreements, and cause harm to Entergy’s competitors and, ultimately, its wholesale and retail ratepayers. Further, Entergy requests market-based rate approval for these PPAs without any recognition of this Commission’s finding that Entergy has transmission and generation market power, which to date has remained essentially unmitigated. Due to the open questions on this particular evaluation process and results, and the possibility that they may set any precedent of RFP “blueprint” going forward, the Commission should not approve Entergy’s application without a complete showing that the PPAs submitted are the product of a fully transparent, fair and non-discriminatory RFP process. Also, the request for market-based rate approval of the PPAs must be considered in light of Entergy’s significant existing and continuing generation market power in its own control area and should be conditioned on significant mitigation of that market power.