[Federal Register Volume 67, Number 167 (Wednesday, August 28, 2002)]
[Notices]
[Pages 55231-55232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21897]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. EL02-123-000]


Boston Edison Company; Order Instituting Investigation and 
Establishing Hearing and Settlement Judge Procedures

Issued August 22, 2002.
    Before Commissioners: Pat Wood, III, Chairman; William L. Massey, 
Linda Breathitt; and Nora Mead Brownell.
    1. On June 20, 2002, in Docket No. ER02-2127-000, Boston Edison 
Company (Boston Edison) submitted for filing unexecuted Service 
Agreements for the Town of Concord, Massachusetts Municipal Light 
Department (Concord) and the Town of Wellesley Municipal Light 
Department (Wellesley) (collectively, Towns) to take local network 
transmission service (LNS) pursuant to Boston Edison's open access 
transmission tariff (OATT). These Service Agreements became effective 
on June 20, 2002.
    2. As discussed below, we will institute an investigation of the 
reasonableness of these Service Agreements. We will establish hearing 
procedures but hold the hearing in abeyance pending settlement judge 
procedures. This order benefits customers because it allows the parties 
to participate in a hearing and/or settlement procedures to determine 
just and reasonable rates.

Background

    3. Boston Edison previously has provided bundled requirements 
service, both generation and transmission services, to both Towns under 
all-requirements ``S'' rates, and since May 1993, such bundled service 
has been provided under individually negotiated agreements (Concord PPA 
and Wellesley PPA). These PPAs expired on May 31, 2002. Since June 1, 
2002, a new supplier has provided generation service to both Towns, and 
they now take transmission separately from generation. Boston Edison's 
filing in Docket No. ER02-2127-000 proposed rates, terms and condition 
for LNS service to Concord and Wellesley; the Service Agreements became 
effective on June 20, 2002.

Discussion

    4. Our preliminary analysis indicates that the Service Agreements 
for Concord and Wellesley may not be just and reasonable, and may be 
unjust, unreasonable, unduly discriminatory or preferential, or 
otherwise unlawful. Therefore, pursuant to section 206 of the Federal 
Power Act (FPA),\1\ we will initiate an investigation of the 
reasonableness of these Service Agreements. Where, as here, the 
Commission initiates a section 206 investigation on its own motion, 
section 206(b) requires that the Commission establish a refund 
effective date anywhere from 60 days after publication in the Federal 
Register of notice of its intent to initiate a proceeding to 5 months 
after the expiration of the 60-day period. In order to give maximum 
protection to customers, and consistent with our precedent,\2\ we will 
establish the refund date at the earliest date allowed. This date will 
be 60 days from the date on which notice of the initiation of the 
investigation is published in the Federal Register.
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    \1\ 16 U.S.C. 824e (1994).
    \2\ See, e.g., Canal Electric Co., 46 FERC ] 61,153, reh'g 
denied, 47 FERC ] 61,275 (1989).
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    5. Section 206(b) also requires that if no final decision is 
rendered in the Commission's investigation by the refund effective date 
or by the conclusion of the 180-day period commencing upon the 
initiation of a proceeding pursuant to section 206, whichever is 
earliest, the Commission shall state the reasons why it has failed to 
do so and shall state its best estimate as to when it reasonable 
expects to make such a decision. Therefore, we will direct the 
presiding judge or settlement judge, as appropriate, to provide a 
report to the Commission no later than 15 days in advance of the refund 
effective date in the event the presiding judge or settlement judge, as 
appropriate, has not by that date issued an initial decision or 
certified to the Commission a settlement which, if accepted would 
dispose of the proceeding. The judge's report, if required, shall 
advise the Commission of the status of the investigation and provide an 
estimate of the expected date of issuance of an initial decision or 
certification of a settlement. This, in turn, will allow the 
Commission, on or before the refund effective date, to estimate the 
date when it expects to render its decision.
    6. In order to provide the parties an opportunity to resolve these 
matters amicably, we will hold the hearing in abeyance and direct 
settlement judge procedures pursuant to Rule 603 of the Commission's 
Rules of Practice and Procedures.\3\ If the parties desire, they may, 
by mutual agreement, request a specific judge as the settlement judge 
in this proceeding; otherwise, the Chief Judge will select a judge for 
this purpose.\4\ The settlement judge shall report to the Chief Judge 
and the Commission within 30 days of the date of this order concerning 
the status of settlement discussions. Based on this report, the Chief 
Judge shall provide the parties with additional time to continue their 
settlement discussions or provide for commencement of a hearing by 
assigning the case to a presiding judge.
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    \3\ 18 CFR 385.603 (2002).
    \4\ If the parties decide to request a specific judge, they must 
make their joint request to the Chief Judge by telephone at (202) 
219-2500 within five days of this order. FERC's Web site contains a 
listing of the Commission's judges and a summary of their background 
and experience. (www.ferc.fed.us--click on Office of Administrative 
Law Judges).
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    The Commission Orders:
    (A) Pursuant to the authority contained in and subject to the 
jurisdiction conferred upon the Federal Energy Regulatory Commission by 
section 402(a) of the Department of Energy Organization Act and by the 
Federal Power Act, particularly section 206 thereof, and pursuant to 
the

[[Page 55232]]

Commission's Rules of Practice and Procedure and the regulations under 
the Federal Power Act (18 CFR, Chapter I), a public hearing shall be 
held in Docket No. EL02-123-000 concerning the reasonableness of the 
Service Agreements. However, the hearing will be held in abeyance while 
the parties attempt to settle, as provided in paragraphs (C) and (D) 
below.
    (B) Pursuant to Rule 603 of the Commission's Rules of Practice and 
Procedure, 18 CFR 385.603 (2002), the Chief Administrative Law Judge is 
hereby directed to appoint a settlement judge in this proceeding within 
15 days of the date of this order. The designated settlement judge 
shall have all powers and duties enumerated in Rule 603 and shall 
convene a settlement conference as soon as practicable.
    (C) Within 30 days of the date of this order, the settlement judge 
shall issue a report to the Commission and the Chief Judge on the 
status of the settlement discussions. Based on this report, the Chief 
Judge shall provide the parties with additional time to continue their 
efforts or, if appropriate, provide for a formal hearing by assigning 
the case to a presiding judge. If settlement judge procedures are 
continued, the settlement judge shall issue a report at least every 30 
days thereafter, informing the Commission and the Chief Judge of the 
parties' progress toward settlement.
    (D) If settlement judge procedures fail and a formal hearing is to 
be held, a presiding administrative law judge, to be designated by the 
Chief Administrative Law Judge, shall convene a prehearing conference 
in this proceeding, to be held within approximately fifteen (15) days 
of the date of the settlement judge's report to the Commission in a 
hearing room of the Federal Energy Regulatory Commission, 888 First 
Street, NE., Washington, DC 20426. The presiding judge is authorized to 
establish procedural dates and to rule on all motions (except motions 
to dismiss) as provided for in the Commission's Rules of Practice and 
Procedure.
    (E) The Secretary shall promptly publish a notice of the 
Commission's initiation of the proceeding in Docket No. EL02-123-000 in 
the Federal Register.
    (F) The refund effective date in Docket No. EL02-123-000, 
established pursuant to section 206(b) of the FPA, shall be 60 days 
following publication in the Federal Register of the notice discussed 
in Ordering Paragraph (E) above.
    (G) The presiding judge or settlement judge, as appropriate, shall 
advise the Commission, no later than 15 days prior to the refund 
effective date established in Docket No. EL02-123-000, in the event 
that the presiding judge or settlement judge, as appropriate, has not 
by that date certified to the Commission a settlement, which, if 
accepted, would dispose of the proceeding or issued an initial 
decision, as to the status of the proceeding and a best estimate when 
the proceeding will disposed of by the presiding judge.

    By the Commission.
Linwood A. Watson, Jr.,
Deputy Secretary.
[FR Doc. 02-21897 Filed 8-27-02; 8:45 am]
BILLING CODE 6717-01-P