[Federal Register Volume 66, Number 56 (Thursday, March 22, 2001)]
[Notices]
[Pages 16051-16052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7103]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. EL00-95-018, EL00-98-017, ER01-1448-001, ER01-1449-001, 
ER01-1451-001, ER01-1453-001, ER01-1455-001, ER01-1456-001]


San Diego Gas & Electric Company Complainant, v. Sellers of 
Energy and Ancillary Services, Respondents, Investigation of Practices 
of the California Independent System Operator and the California Power 
Exchange, Duke Energy Trading and Marketing, LLC, Dynegy Power 
Marketing, Inc., Portland General Electric Company, Reliant Energy 
Services, Inc., Mirant California, LLC, Mirant Delta, LLC and Mirant 
Potrero, LLC, Williams Energy Services Corporation; Notice of Proxy 
Price for February Wholesale Transactions in the California Wholesale 
Electric Market

March 16, 2001.
    On March 9, 2001, the Commission issued an order establishing a 
proxy market clearing price approach to estimate total potential 
refunds or offsets in the ISO and PX markets during January through 
April 2001.\1\ The Commission directed the Director of the Office of 
Markets, Tariffs and Rates to issue a notice of the proxy market 
clearing price for the month of February. For the month of February, 
2001, the proxy price is estimated to result in approximately $55 
million of total potential refunds or offsets by public utility 
sellers. These refunds are based on a proxy market clearing price of 
$430/MWh.
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    \1\ 94 FERC para. 61,245 (The California PX suspended operations 
at the end of January 2001.)
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    Following the methodology established by the March 9 order, the 
proxy price for February is based on:

    (1) a combustion turbine with a heat rate of 18,073/Btu/kWh as 
reported in the three California investor-owned utilities' 1998 FERC 
Form No. 1;
    (2) the average reported midpoint natural gas price for 
``Southern California Gas Company large package'' transactions as 
reported in Financial Times Energy's ``Gas Daily'' publication. This 
price increased 53 percent from January to February 2001 from 
$12.50/mmBtu to $19.11/mmBtu;

[[Page 16052]]

    (3) the average NOX allowance costs from the Southern 
California Air Quality Management District NOX Auction as 
reported by Cantor Fitzgerald Environmental Brokerage Services. This 
cost increased 85 percent from January to February 2001 from $22.50/
lb. to $41.72/lb.;
    (4) an average NOX emissions rate of 2 lbs./MWh as 
reported by public utility sellers; and
    (5) variable O&M costs of $2/MWh as reported by public utility 
sellers.

    The Attachment contains a list of the parties having transactions 
with the California Independent System Operator during stage 3 hours to 
which the proxy price applies and the estimated potential refund 
obligation for each public utility seller. Any final resolution of the 
amount of refunds that may be due will be determined pursuant to the 
procedures established by the Commission's March 9, 2001 order in these 
dockets.
    The identified public utility sellers should refer to the 
Commission's March 9, 2001 Order for a description of procedures and 
filing requirements.

Daniel L. Larcamp,
Director, Office of Markets, Tariffs and Rates.

Attachment

    Transaction information filed by the California Independent System 
Operator (ISO) is used to identify transactions at prices in excess of 
the $430/MWh proxy clearing price and to estimate potential refunds. 
The following is a list of the number of transactions reported by the 
ISO with a price greater than $430/MWh made during hours in which the 
ISO called a Stage 3 Emergency and the potential refunds. Since the ISO 
reported energy transactions in 10 minute increments, sellers may find 
that the number of transactions listed below is significantly higher 
than the number of hourly transactions they reported to the Commission.

Duke Energy Trading and Marketing, LLC

[Docket No. ER01-1448-001]
ISO Energy: 20 transactions with a refund potential of $2,107,289

Dynegy Power Marketing Inc.

[Docket No. ER01-1449-001]
ISO Ancillary Services: 328 transaction with a refund potential of 
$3,235,208
ISO Energy: 2,723 transactions with a refund potential of $20,119,616

Portland General Electric Company

[Docket No. ER01-1451-001]
ISO Out-of-Market: 23 transactions with a refund potential of $73,600

Reliant Energy Services, Inc.

[Docket No. ER01-1453-001]
ISO Energy: 770 transactions with a refund potential of $7,440,999

Mirant California, LLC, Mirant Delta, LLC and Mirant Potrero, LLC

[Docket No. ER101-1455-001]
ISO Energy: 286 transactions with a refund potential of $826,111

Williams Energy Services Corporation

[Docket No. ER01-1456-001]
ISO Energy: 7,054 transactions with a refund potential of $21,564,636

    Filings regarding the February transactions addressed by this 
notice should reference the company specific docket numbers listed 
above.

[FR Doc. 01-7103 Filed 3-21-01; 8:45 am]
BILLING CODE 6717-01-M