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FERC Filings

EPSA's Motion for Leave to Comment on Entergy Services, Inc (ESI) Aug. 9 Compliance Filing

PREFACE

The Electric Power Supply Association (EPSA) hereby submits comments on the August 9, 2004 compliance filing made by Entergy Services, Inc (ESI) on behalf of Entergy Arkansas, Inc., Entergy Gulf States, Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc., and Entergy New Orleans, Inc., (collectively, Entergy). Entergy submitted the compliance filing pursuant to the Commission’s 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).
Entergy submitted its market-based rate authority compliance filing under protest, noting that while Entergy fails the interim indicative market share analysis screen, that screen is fatally flawed. For this reason, Entergy includes the results of a Delivered Price Test (DPT) which, based on Entergy’s own analysis, it only partially passes. Regardless of these screen failures, Entergy concludes

…that Entergy's filed open access transmission tariff, its inability to erect barriers to entry or otherwise engage in affiliate abuse transactions (which have not materially changed since Entergy's most recent market power update), adequately address the Commission's other competitive concerns related to market rate authorization.

Entergy further contends that, because they have included the DPT analysis in its compliance filing, the Commission does not need to initiate a Section 206 proceeding to investigate the company’s market power, and further, that no mitigation is required. Contrary to Entergy’s assertions, it has failed the Commission’s market power screens and has market power. Hence, EPSA requests that the Commission:

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

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