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FERC Filings

EPSA's Motion for Leave to Comment on Southern Company Services, Inc (SCS) Compliance Filing

PREFACE

The Electric Power Supply Association (EPSA) hereby submits comments on the August 9, 2004 compliance filed by Southern Company Services, Inc., (SCS) acting as agent for Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, Savannah Electric and Power Company, and Southern Power Company, (collectively, Southern Companies). Southern Companies submitted generation market power screens and other analysis in compliance with the Commission orders issued on April 14, 2004, in Docket No. ER96-2495-016, et al, 107 FERC 61, 018 (AEP Power Marketing) and July 8, 2004, in Docket No. ER96-2495-018, et al., 108 FERC 61,026 (AEP Power Marketing II).

Southern Companies’ compliance filing, which contends that the interim indicative generation market power screens adopted in AEP Power Marketing are inherently flawed, asserts that the Southern Companies passes the pivotal supplier when constructed as required by the Commission’s orders. Southern Companies also claims that it passes a pivotal supplier screen constructed as required by the Commission’s orders, but applied monthly. Southern Companies fails the Commission’s market share screen, but claims that the screen is fatally flawed and should not be relied upon. In its place, Southern Companies performs and submits three modified pivotal supplier screens that it has developed and deems more appropriate than the market share screen. These modified pivotal supplier screens are applied on a monthly basis with wholesale load being measured in three different ways: (1) at peak, (2) at the average of the daily peaks, and (3) at the lowest daily peak. Southern Companies asserts it passes these modified screens. Southern Companies clearly has failed the Commission’s market power tests. EPSA requests that the Commission:

(i) initiate a Section 206 investigation to investigate Southern’s market power, including generation market power; and

(ii) require Southern to implement transitional, structural market elements to mitigate the company’s market power.