[Federal Register Volume 65, Number 173 (Wednesday, September 6, 2000)]
[Notices]
[Pages 53994-53995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22790]


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DEPARTMENT OF ENERGY

[FE Docket No. PP-230]


Application to Rescind Presidential Permit; Joint Application for 
Presidential Permit; Detroit Edison Company and International 
Transmission Company

AGENCY: Office of Fossil Energy, DOE.

ACTION: Notice of joint application.

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SUMMARY: Detroit Edison and International Transmission jointly applied 
to rescind Presidential Permit PP-221 held by Detroit Edison and to 
issue a Presidential permit to International Transmission covering 
these same international transmission facilities. In addition, the 
Applicants are requesting expedited approval of their joint 
application.

DATES: Comments, protests, or requests to intervene must be submitted 
on or before September 21, 2000.

ADDRESSES: Comments, protests, or requests to intervene should be 
addressed as follows: Office of Coal & Power Import and Export (FE-27), 
Office of Fossil Energy, U.S. Department of Energy, 1000 Independence 
Avenue, SW., Washington, DC, 20585-0350.

FOR FURTHER INFORMATION CONTACT: Ellen Russell (Program Office) 202-
586-9624 or Michael T. Skinker (Program Attorney) 202-586-2793.

SUPPLEMENTARY INFORMATION: The construction, operation, maintenance and 
connection of facilities at the international border of the United 
States for the transmission of electric energy between the United 
States and a foreign country is prohibited in the absence of a 
Presidential permit issued pursuant to Executive Order (EO) 10485, as 
amended by EO 12038. Existing Presidential permits are not transferable 
or assignable. However, in the event of a proposed voluntary transfer 
of facilities, in accordance with the regulations at 10 CFR 205.323, 
the existing permit holder and the transferee are required to file a 
joint application with DOE that includes a statement of reasons for the 
transfer.
    On August 21, 2000, The Detroit Edison Company (Detroit Edison) and 
International Transmission Company (International Transmission) 
(collectively the ``Applicants'') jointly filed an application with the 
Office of Fossil Energy (FE) of the Department of Energy (DOE) for a 
transfer from Detroit Edison to International Transmission of the 
facilities authorized by Presidential Permit PP-221. These facilities 
include:
    (a) One 230,000-volt (230-kV) transmission line connecting Detroit 
Edison's Bunce Creek Station, located in Marysville, Michigan, with 
Ontario Hydro's Scott Transformer Station located in Sarnia, Ontario 
(previously identified by Detroit Edison as the B3N facility).
    (b) One 230-kV transmission line connecting Detroit Edison's 
Waterman Station, located in Detroit, Michigan, with Ontario Hydro's J. 
Clark Keith Generating Station, located in Windsor, Ontario (previously 
identified by Detroit Edison as the J5D facility).
    (c) One 345-kV transmission line connecting Detroit Edison's St. 
Clair Generating Station, located in East China Township, Michigan, 
with Ontario Hydro's Lambton Generating Station, located in Moore 
Township, Ontario (previously identified by Detroit Edison as the L4D 
facility).
    (d) One 230-kV transmission line connecting Detroit Edison's St. 
Clair Generating Station, located in East China Township, Michigan, 
with Ontario Hydro's Lambton Generating Station, located in Moore 
Township, Ontario (previously identified by Detroit Edison as the L51D 
facility).
    The proposed transfer of these facilities is occasioned by a 
planned corporate restructuring by DTE Energy Company (DTE Energy); the 
Applicants are each wholly owned subsidiaries of DTE Energy. On June 
29, 2000, in an Order issued by the Federal Energy Regulatory 
Commission (FERC) in Docket No. EC00-86-000, DTE Energy and the 
Applicants were authorized to engage in a series of intra-corporate 
transactions. One result of these transactions is the transfer from 
Detroit Edison to International Transmission of ownership, operation, 
and control of its integrated high-voltage transmission facilities, 
including international transmission lines previously authorized to 
Detroit Edison by DOE in Presidential Permit PP-221. The PP-221 
facilities connect the Detroit Edison system with the system of Hydro 
One Networks, Inc. (Hydro One, formerly Ontario Hydro).

[[Page 53995]]

    On December 8, 1998, Detroit Edison applied to DOE to amend certain 
existing Presidential permits by changing the manner in which the 
international facilities are operated. In that related proceeding (FE 
Docket PP-221) Detroit Edison proposed installing a voltage-regulating 
autotransformer on the L51D facility and a phase-shifting transformer 
on the B3N facility. On April 27, 2000, in Order PP-221, DOE authorized 
Detroit Edison to place in service the autotransformer on the L51D 
facility, but put off authorizing the requested change to the B3N 
facility until after submission and evaluation by DOE of additional 
regional coordination studies. These studies have not yet been 
submitted to DOE for review. Therefore, if DOE authorizes the transfer 
of Detroit Edison's international facilities to International 
Transmission, any subsequent changes to the B3N facilities that DOE may 
authorize would occur in Docket PP-230. DOE will consider interveners 
or parties in the PP-221 proceeding to be interveners or parties in the 
continuation of this proceeding.
    Since restructuring of the electric power industry began, resulting 
in the introduction of different types of competitive entities into the 
marketplace, DOE has consistently expressed its policy that cross-
border trade in electric energy should be subject to the same 
principles of comparable open access and non-discrimination that apply 
to transmission in interstate commerce. DOE has stated that policy in 
export authorizations granted to entities requesting authority to 
export over international transmission facilities. Specifically, DOE 
expects transmitting utilities owning border facilities to provide 
access across the border in accordance with the principles of 
comparable open access and non-discrimination contained in the FPA and 
articulated in Federal Energy Regulatory Commission Order No. 888 
(Promotion Wholesale Competition Through Open Access Non-Discriminatory 
Transmission Services by Public utilities; FERC Stats. & Regs. 
para.31,036 (1996)), as amended. In furtherance of this policy, on July 
27, 1999, (64 FR 40586) DOE initiated a proceeding in which it noticed 
its intention to condition existing and future Presidential permits, 
appropriate for third party transmission, on compliance with a 
requirement to provide non-discriminatory open access transmission 
service. That proceeding is not yet complete. However, in this docket 
DOE specifically requests comment on the appropriateness of applying 
the open access requirement on facilities proposed to be transferred to 
International Transmission.

Procedural Matters

    Any person desiring to become a party to this proceeding or to be 
heard by filing comments or protests to this application should file a 
petition to intervene, comment or protest at the address provided above 
in accordance with Secs. 385.211 or 385.214 of the FERC's Rules of 
Practice and Procedures (18 CFR 385.211, 385.214). Fifteen copies of 
each petition and protest should be filed with the DOE on or before the 
date listed above.
    Additional copies of such petitions to intervene or protests also 
should be filed directly with: Raymond O. Sturdy, Jr., The Detroit 
Edison Company, 2000 Second Avenue--688 WCB, Detroit, Michigan 48226-
1279 and Messrs. John D. McGrane and Michael C. Griffen, Morgan, Lewis 
& Bochius LLP, 1800 M Street, NW, Washington, DC 20036.
    Before a Presidential permit or electricity export authorization 
may be issued or amended, the DOE must determine that the proposed 
action will not adversely impact on the reliability of the U.S. 
electric power supply system. In addition, DOE must consider the 
environmental impacts of the proposed actions pursuant to the National 
Environmental Policy Act of 1969. DOE also must obtain the concurrence 
of the Secretary of State and the Secretary of Defense before taking 
final action on a Presidential permit application.
    Copies of these applications will be made available, upon request, 
for public inspection and copying at the address provided above. In 
addition, the application may be reviewed or downloaded from the Fossil 
Energy Home Page at: http://www.fe.doe.gov. Upon reaching the Fossil 
Energy Home page, select ``Electricity'' from the options menu, and 
then ``Pending Proceedings.''

    Issued in Washington, D.C., on August 31, 2000.
Ellen Russell,
Acting Deputy Director, Electric Power Regulation, Office of Coal & 
Power Im/Ex, Office of Fossil Energy.
[FR Doc. 00-22790 Filed 9-5-00; 8:45 am]
BILLING CODE 6450-01-M