FERC Filings
EPSA Comments on Changes In Status for Public Utilities with Market-Based Authority
EXECUTIVE SUMMARY
The Electric Power Supply Association (EPSA) supports the Commission’s efforts to establish and clarify guidelines on the reporting obligation for changes in status that apply to public utilities authorized to make wholesale power sales in interstate commerce at market-based rates. The Notice of Proposed Rulemaking (NOPR), issued on October 6, 2004, outlines proposed modifications to amend the Commission’s regulations and requests comment on several issues and questions laid out to define triggering events and specify filing requirements and timelines.
EPSA supports the intent of the NOPR, and recommends the following:
1) Clarification of the current language used to define material change events regarding transactions that may require review by the Commission – specifically, better definition of “control” of another entity’s assets. The Commission should issue a supplemental NOPR seeking additional comment on the triggering events and related thresholds before final implementation of this rule.
2) Thresholds for triggering events should be measured in relation to an increase in an applicant’s market share and impact on the relevant geographic market rather than the percentage increase in the applicant’s generation portfolio alone.
3) For transactions that are filed with the Commission pursuant to Section 203 of the Federal Power Act (FPA), there should be an exemption from the reporting requirement as the Commission will review the event under 203.
4) Report filings should be submitted as transmittal letters with narrative explanations of the changed circumstance.
5) Filings should be made concurrent with a company’s Electronic Quarterly Reports (EQRs).
6) This reporting requirement should be an interim requirement, pending final issuance of a comprehensive market-based rate authority framework (Docket No. RM04-7 or comprehensive proceeding).
EPSA submits these recommendations in support of the ultimate goal of the instant NOPR, as up-to-date information regarding significant changes applicable to market participants selling at market-based rates benefits competitive wholesale electricity markets.