Message-ID: <9566954.1075852610314.JavaMail.evans@thyme> Date: Tue, 28 Aug 2001 14:21:49 -0700 (PDT) From: jeff.dasovich@enron.com To: vjw@cleanpower.org Subject: FW: MOTION SEEKING ORDER OR STAY CANCELING OR SUSPENDING CALIFORNIA DEPARTMENT OF WATER RESOURCES LONG-TERM ENERGY CONTRACTS AND ASSOCIATED I OU RATE SCHEDULES FOR LACK OF PROPER NOTICE UNDER THE FPA Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Dasovich, Jeff X-To: 'vjw@cleanpower.org' X-cc: X-bcc: X-Folder: \JDASOVIC (Non-Privileged)\Sent Items X-Origin: Shankman-J X-FileName: JSHANKM (Non-Privileged).pst John: You aware of, know anything about, this? Best, Jeff > MOTION SEEKING ORDER OR STAY CANCELING OR SUSPENDING CALIFORNIA DEPARTMENT > OF WATER RESOURCES LONG-TERM ENERGY CONTRACTS AND ASSOCIATED IOU RATE > SCHEDULES FOR LACK OF PROPER NOTICE UNDER THE FPA > > Pursuant to Rules 212 of the Rules and Practices and Procedures of the > Federal Energy Regulatory Commission ("FERC"), 18 C.F.R. 385.212, > CAlifornians for Renewable Energy, Inc. ("CARE"), moves for the > Commission's consideration and action to remedy the illegal execution of > long-term energy contracts by the California Department of Water Resources > ("DWR") in regards to the CARE and other party's complaints in EL00-95 > et.al. Under section 205(c) of the Federal Power Act (49 Stat. 851; 16 > U.S.C. 824d(c)) the DWR long-term energy contracts recently disclosed > through legal action by the California legislature and press requires that > these contracts "shall be tendered for filing with the Commission and > posted not less than sixty days nor more than one hundred-twenty days > prior to the date on which the electric service is to commence." We > contend that DWR has failed to comply with the requirements of the FPA in > this matter. The remedy CARE seeks is for the Commission to issue an Order > or Stay canceling or suspending such long-term energy contracts and > associated IOU rate schedules (yet to be submitted to the Commission) > pursuant to FPA section 205 (c). > > DWR disputes its requirements to provide proper notice prior to execution > of said long-term contracts to all the parties to this case and to the > public who have in a statutory and constitutional right to comment on > expenditures of the public's funds in this manner by DWR. In response to > CARE's CPRA request DWR states the "Department's purchases and sales of > power are exempt from the Federal Power Act because DWR is a state agency. > Section 201(f). To the extent that the Department engages in purchases or > sales with counterparties who are subject to Federal Power Act > jurisdiction, any obligation to file with FERC or otherwise comply with > the Act lies with the counterparty to the contract, and not the > department." > > CARE contends that DWR is acting as an "designated representative" for the > Investor Owned Utilities ("IOUs") in the purchase of energy in California, > pursuant to 18 CFR 35.1 (a), without authorization by the Commission. > > "In cases where two or more public utilities are required to file > rate schedules or certificates of concurrence such public utilities may > authorize a designated representative to file upon behalf of all parties > if upon written request such parties have been granted Commission > authorization therefore." > > CARE contends these actions by DWR violated the requirements of 18 CFR > 35.1 (4)(e). > > "No public utility shall, directly or indirectly, demand, charge, > collect or receive any rate, charge or compensation for or in connection > with electric service subject to the jurisdiction of the Commission, or > impose any classification, practice, rule, regulation or contract with > respect thereto, which is different from that provided in a rate schedule > required to be on file with this Commission unless otherwise specifically > provided by order of the Commission for good cause shown." > > CARE contends that ample evidence of DWR's acting as the California IOU's > "designated representative" is provided by DWR's request to the California > Public Utilities Commission ("PUC") for a Revised Revenue Requirement and > Power Purchase Costs Pursuant to Water Code Section 80110 and Public > Utilities Code Section 451 , which is further illustrated by the PUC's > Administrative law Judge's Ruling on the August 7, 2001 Revenue > Requirement of the DWR regarding the IOU S.D.G. & E. applications > 01-10-044, and 01-01-0045 to the PUC , which states: > > "SDG&E shall present alternative calculations of the required system > average rate increases that (1) collect the DWR-related rate increases > over the remaining 5 quarters of the revenue requirement period set forth > in Table A-6 (i.e., the fourth quarter of 2001 and the four quarters of > 2002), (2) collect the DWR-related rate increases over the next 8 quarters > (i.e., the fourth quarter of 2001, the four quarters of 2002, and the > first three quarters of 2003), and (3) collect the DWR-related rate > increases over the period from September 1, 2001 through December 31, > 2002." > > Clearly it is the intent of the DWR to act as the IOU's "designated > representative" to seek approval from the PUC "to collect the DWR-related > rate increases". > > CARE reiterates, it is the public policy that public agencies exist to aid > in the conduct of the people's business and that the proceedings of public > agencies be conducted openly so that the public may remain informed. It is > the intent of the law that actions of public agencies be taken openly and > that their deliberation be conducted openly. The people do not yield their > sovereignty to those agencies that serve them. The people, in delegating > authority, do not give their public servants the right to decide what is > good for the people to know and what is not good for them to know. The > people insist on remaining informed so that they may retain control over > the instruments they have created. DWR has breached its public duties by > failing to provide for myself, CARE, its members, and other members of the > public, our statutory and constitutional right to comment or protest these > long-term energy contracts executed by DWR, the associated expenditures of > the public's funds, and associated rate increases to California energy > consumers. > > In conclusion the Remedy CARE seeks is for the Commission to issue an > Order or Stay canceling or suspending such long-term energy contracts and > associated IOU rate schedules (yet to be submitted to the Commission) > pursuant to FPA section 205 (c), or under what ever statutory authority as > you deem appropriate. > > Respectfully submitted, > Michael E. Boyd President, CARE 8-28-01 (408) > 325-4690 > <<...OLE_Obj...>> >