[Federal Register Volume 65, Number 239 (Tuesday, December 12, 2000)]
[Notices]
[Pages 77609-77610]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31569]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. TX01-1-000]


California Independent System Operator Corporation; Notice of 
Filing

December 6, 2000.
    Take notice that on December 1, 2000, the California Independent 
System Operator Corporation (the ISO) applied in the above-numbered 
docket for an order, under Section 211 of the Federal Power Act (FPA), 
16 U.S.C. 824j, compelling San Diego Gas & Electric Company (SDG&E) to 
perform those transmission services that are necessary to fulfill the 
terms of the Transmission Control Agreement between SDG&E and the ISO, 
the Transmission Owners tariff, and the ISO Tariff. The ISO submits the 
application as agent for all users of SDG&E's transmission system 
eligible to apply under Section 211. SDG&E's concurrence is submitted 
with the application.
    The application states that SDG&E transmission and distribution 
system have been financed, in part with certain ``Local Furnishing 
Bonds,'' the interest on which is tax-exempt under Section 142 of the 
Internal Revenue Code. According to the application, Section 142 
requires that SDG&E system be operated for the benefit of customers 
within its service territory, and operation of the system deemed by the 
Internal Revenue Service (the IRS) to be inconsistent with that 
requirement would, as a general rule, disqualify all of the currently 
outstanding Local Furnishing Bonds. The application further states, 
however, that, under Section 142(f), if disqualifying transmission 
services are provided pursuant to a Commission order issued under 
Section 211, only the bonds that financed the portion of the system 
used to provide such services, rather than all of the bonds that 
financed the local

[[Page 77610]]

furnishing system, cease to be eligible for tax-exempt treatment. SDG&E 
has advised the ISO that SDG&E local furnishing debt currently includes 
approximately $168 million relating to its transmission facilities and 
$518 million relating to its distribution facilities.
    SDG&E has requested a ruling from the IRS that neither the 
execution and implementation of the Transmission Control Agreement nor 
the implementation, on January 1, 2001, of a state-wide transmission 
Access Charge under tariffs accepted for filing in Docket No. ER00-2019 
conflicts with the local furnishing requirements. To assure, however, 
that, if a favorable ruling on either request is not forthcoming, at 
least the $518 million in bonds relating to SDG&E distribution system 
will remain tax-exempt, the application seeks an order, effective with 
the effective date of the Transmission Control Agreement, directing 
SDG&E to perform the stated transmission services. Anticipating that a 
statewide transmission Access Charge will take effect on January 1, 
2001, the application requests that such an order issue prior to that 
date. SDG&E waives its right to a prior request and to a proposed 
order.
    The ISO states that this filing has been served upon SDG&E, the 
Public Utilities Commission of the State of California, and the 
California Electricity Oversight Board.
    Any person desiring to be heard or to protest such filing should 
file a motion to intervene or protest with the Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in 
accordance with Rules 211 and 214 of the Commission's Rules of Practice 
and Procedure (18 CFR 385.211 and 385.214). All such motions and 
protests should be filed on or before December 15, 2000. Protests will 
be considered by the Commission to determine the appropriate action to 
be taken, but will not serve to make protestants parties to the 
proceedings. Any person wishing to become a party must file a motion to 
intervene. Copies of this filing are on file with the Commission and 
are available for public inspection. This filing may also be viewed on 
the Internet at http://www.ferc.fed.us/online/rims.htm (call 202-208-
2222 for assistance). Comments and protests may be filed electronically 
via the internet in lieu of paper. See, 18 CFR 385.2001(a)(1)(iii) and 
the instructions on the Commission's web site at http://www.ferc.fed.us/efi/doorbell.htm.

David P. Boergers,
Secretary.
[FR Doc. 00-31569 Filed 12-11-00; 8:45 am]
BILLING CODE 6717-01-M