Subject: FERC order re: imbalances
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 15 Mar 2001 03:23:00 -0800 (PST)

A helpful FERC order as we work on asset management deals:

New Horizon Electric Cooperative Inc. v. Duke Power Company, EL00-101-001. 
Order on Rehearing. Order issued October 11, 2000 addressing a complaint by 
New Horizon Electric Cooperative, Inc (New Horizon) against Duke Power Co. 
(Duke) seeking FERC resolution of four disputed issues, including treatment 
of energy imbalances not prevented by dynamic scheduling. New Horizon's 
complaint claimed that energy imbalance service does not apply to it, since 
it will employ dynamic scheduling to effectively remove its load from Duke's 
control area. Further, New Horizon maintained that any deviation between the 
dynamic schedule and the actual metered delivery of energy constituted 
inadvertent interchange energy (which is the net difference between actual 
and scheduled interchange energy between two control areas) and proposed that 
any differences would be returned in-kind within two hours. On November 9, 
New Horizon filed a request for rehearing or clarification of the October 11 
Order. Order issued February 26 granting New Horizon's request for rehearing 
or clarification of the October 11 Order. Order clarifies that, to the extent 
dynamic scheduling by New Horizon operates successfully; New Horizon should 
not be subject to charges under Duke's Schedule 4 Energy Imbalance Service. 
In such circumstances, any imbalances between energy deliveries on behalf of 
New Horizon and New Horizon's load should be accounted for by Duke as 
inadvertent interchanges only. In addition, Order directed parties to 
negotiate in good faith to establish a standard for the successful operation 
of dynamic scheduling.