Message-ID: <22036704.1075858915956.JavaMail.evans@thyme> Date: Thu, 19 Apr 2001 12:50:00 -0700 (PDT) From: susan.scott@enron.com To: susan.scott@enron.com Subject: Entities that do not need FERC power marketing authorization Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Susan M Scott X-To: Susan Scott X-cc: X-bcc: X-Folder: \SSCOTT5 (Non-Privileged)\Scott, Susan M.\Sent Items X-Origin: Scott-S X-FileName: SSCOTT5 (Non-Privileged).pst I think this is for you. ---------------------- Forwarded by Susan M Scott/HOU/ECT on 04/19/2001 09:= 48 AM --------------------------- =20 =09 From: Christi L Nicolay 04/19/2001 09:31 AM= =09 =09=09 To:=09Susan M Scott/HOU/ECT@ECT cc:=09=20 Subject:=09Entities that do not need FERC power marketing authorization ---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/19/2001= 09:31 AM --------------------------- =20 =09 From: Christi L Nicolay 04/18/2001 05:44 PM= =09 =09=09 To:=09Paul Kaufman/PDX/ECT@ECT, Jeff Brown/NA/Enron@Enron, Ron McNamara/NA/= Enron@Enron, James D Steffes/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON= , Aleck Dadson/TOR/ECT@ECT, Daniel Allegretti/NA/Enron@Enron, Howard Fromer= /NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRO= N, Tom Hoatson/NA/Enron@Enron, Steve Montovano/NA/Enron@Enron, Jean Ryall/N= A/Enron@ENRON, Tom Chapman/HOU/ECT@ECT, Janine Migden/NA/Enron@Enron, Dave = Mangskau/Corp/Enron@ENRON, Dan Staines/HOU/ECT@ECT, Mike Roan/ENRON@enronXg= ate, Joe Connor/NA/Enron@Enron, Kerry Stroup/NA/Enron@Enron, Steve Walton/H= OU/ECT@ECT, Mary Hain/HOU/ECT@ECT, Alan Comnes/PDX/ECT@ECT, Susan J Mara/NA= /Enron@ENRON, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andy Rodriq= uez/Enron@EnronXGate, Lloyd Will/HOU/ECT@ECT, steve.wang@enron.com, ebaughm= @enron.com, terri.clynes@enron.com, oscar.dalton@enron.com, doug.sewell@enr= on.com, kcompea@enron.com, mike.e.kelly@enron.com, gary.justice@enron.com, = patrick.hanse@enron.com, Karla Compean/Enron@EnronXGate, Kerry Stroup/NA/En= ron@Enron, Dave Mangskau/Corp/Enron@ENRON, Jeff Brown/NA/Enron@Enron, Russe= ll Ballato/NA/Enron@Enron, Don Baughman/HOU/ECT@ECT, Matt Lorenz/HOU/ECT@EC= T, Jason Choate/Corp/Enron@ENRON, Maria Valdes/Corp/Enron@Enron, John Kinse= r/HOU/ECT@ECT, Peter Makkai/NA/Enron@Enron, Jeff King/Corp/Enron@Enron, Rob= ert Benson/Corp/Enron@ENRON, Fletcher J Sturm/HOU/ECT@ECT, Berney C Aucoin/= HOU/ECT@ECT, Brad Morse/HOU/ECT@ECT, ozzie.pagan@enron.com, heather.kroll@e= nron.com, david.fairley@enron.com, george.mccormick@enron.com, wjennin@enro= n.com, joseph.wagner@enron.com, elizabeth.johnston@enron.com, bill.rust@enr= on.com, Reagan Rorschach/Enron@EnronXGate, Edith Cross/HOU/ECT@ECT, Berney = C Aucoin/HOU/ECT@ECT, Jennifer Bagwell/Enron@EnronXGate, Billy Braddock/Enr= on@EnronXGate, mike.curry@enron.com, drew.tingleaf@enron.com, cahn@enron.co= m, Edith Cross/HOU/ECT@ECT, Greg Trefz/Corp/Enron@ENRON, Berney C Aucoin/HO= U/ECT@ECT, Michelle Parks/Enron@EnronXGate, jader@enron.com, Michael Brown/= Enron@EnronXGate, mark.bernstein@enron.com, john.llodra@enron.com, janelle.= scheuer@enron.com, George Wood/Corp/Enron@Enron, David Guillaume/Enron Comm= unications@Enron Communications, joe.gordon@enron.com, splauch@enron.com, j= ennifer.n.stewart@enron.com, tom.dutta@enron.com, Posey Martinez/HOU/ECT@EC= T, Jim Meyn/NA/Enron@Enron, Berney C Aucoin/HOU/ECT@ECT, Pearce W Hammond/E= nron@EnronXGate, Garrett Tripp/TOR/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Rob= ert Frank/NA/Enron@Enron, Elizabeth Sager/HOU/ECT@ECT, Kay Mann/Corp/Enron@= Enron, David Portz/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Michael Etring= er/HOU/ECT@ECT, Chris Lackey/PDX/ECT@ECT, Vicki Sharp/HOU/EES@EES, Tim Beld= en/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Ray Alvarez/NA/Enron@ENRO= N, Steve Van Hooser/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Sheila Tweed/= HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT cc:=09=20 Subject:=09Entities that do not need FERC power marketing authorization We have been getting questions about the ability of potential customers to = sell power onto the grid to EPMI. Below is a brief outline of the FERC lic= enses required. Customers other than those listed below (including non-QF = industrial on site generators) need a power marketer license from FERC. In= most cases, such customers do not need to file for EWG status (unless thei= r primary business is as a utility, like Enron). =20 In addition, both EPMI and EES filed at FERC for authorization to perform c= ertain power marketer license functions on behalf of industrial on-site gen= eration customers. We expect the authorization within a month. I'll let y= ou know when we receive it and what we can do for customers. ---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/18/2001= 05:22 PM --------------------------- "Andrea Settanni" on 04/18/2001 05:17:11 PM To:=09 cc:=09"Dan Watkiss" =20 Subject:=09Entities that do not need power marketing authorization Christi- This email briefly responds to your question whether state agencies or muni= cipalities and qualifying facilities ("QFs") must obtain power marketing au= thorization. The answer is no. With regard to state agencies or municipalities, section 201(f) of the Fede= ral Power Act ("FPA") states that no provision of Part II of the FPA, which= governs the regulation of electric utility companies engaged in interstate= commerce, "shall apply to, or be deemed to include, the United States, a S= tate or any political subdivision of a state, or any agency, authority, or = instrumentality of any one or more of the foregoing, or any corporation whi= ch is wholly owned, directly or indirectly, by any one or more of the foreg= oing, or any officer, agent, employee of any of the foregoing acting as suc= h in the course of his official duty, unless such provision makes specific = reference thereto." Section 205 of the FPA, which would would otherwise require an entity to ha= ve rates for wholesale sales of power on file with FERC, does not apply to = state agencies and municipalities. With regard to whether QFs need power marketing authorization, most QFs are= exempt (some small power production facilities are not exempt) from most p= rovisions of the FPA, including section 205, which requires public utilitie= s making sales of electric energy for resale in interstate commerce to file= rate schedules with FERC. QFs are instead regulated under PURPA, which au= thorizes utilities to purchase power from QFs at the purchaser's avoided co= st. FERC decisional precedent indicates that a QF can lawfully sell at mar= ket-based rates without seeking market-based rate authorization from FERC, = but that it may nevertheless be prudent for a QF to seek FERC acceptance of= a market-based rate schedule that would provide protection in the event QF= status is lost. Let me know if you need anything else. Andrea M. Settanni Bracewell & Patterson, L.L.P. 2000 K Street, N.W. Suite 500 Washington, D.C. 20006-1872 (202) 828-7631 (phone) (202) 857-2128 (fax) asettanni@bracepatt.com