[Federal Register Volume 68, Number 6 (Thursday, January 9, 2003)]
[Notices]
[Pages 1181-1182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-365]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER03-246-000]


Order Establishing Procedures Before Commissioners: Pat Wood, 
III, Chairman; William L. Massey, and Nora Mead Brownell

Issued December 30, 2002.
    1. On December 6, 2002, the United States Department of Energy 
(DOE) referred to the Commission (Referral) the matter of compensation 
for costs incurred pursuant to an emergency order issued under section 
202(c) of the Federal Power Act (FPA). DOE requests that the Commission 
``conduct such proceedings as it determines to be appropriate and issue 
a final order resolving these matters.'' In this order the Commission 
initiates procedures as requested. This order establishes procedures 
which will enable the Commission to resolve the issues in a timely 
manner.
    2. In order to provide notice to interested parties, this order 
will be published in the Federal Register. Motions to intervene are due 
on or before 10 days after the date of publication.
    3. On August 26, 2002, pursuant to section 202(c) of the FPA \1\ 
and section 301 of the DOE Organization Act,\2\ the Secretary of Energy 
issued Order No. 202-02-1 (Emergency Order). In the Emergency Order, 
the Secretary determined that an emergency existed on Long Island ``due 
to a shortage of electric energy, a shortage of facilities for the 
generation of electric energy, a shortage of facilities for the 
transmission of electric energy and other causes.'' Further, the 
Secretary determined that the issuance of the Emergency Order would 
alleviate the emergency and serve the public interest. Therefore, the 
Secretary directed Cross-Sound Cable Company, LLC (CSC) ``to operate 
the Cross-Sound Cable and related facilities in order to transmit and 
deliver electric capacity and/or energy when, as and in such amounts as 
may be scheduled and purchased by the Long Island Power Authority 
(LIPA).'' The Emergency Order further directed CSC ``to take such 
actions as are necessary in order to energize the [CSC] facilities.''
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    \1\ 16 U.S.C. 824a(c) (2000).
    \2\ 42 U.S.C. 7151(b) (2001).
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    4. As noted in the Referral, CSC and LIPA have not been able to 
reach agreement on appropriate compensation relating to the Emergency 
Order. Therefore, pursuant to 10 CFR 205.376 (2002), DOE requests that 
the Commission apply such standards and procedures as it considers 
appropriate to resolve this matter.
    5. In order to ascertain the positions of CSC, LIPA and any other 
interested party regarding the appropriate compensation for the 
emergency period, the Commission orders the filing of Initial Briefs on 
or before January 31, 2003 explaining the party's position and 
providing evidentiary support for that position. Parties may rebut each 
other's positions in Reply Briefs, which are due on or before February 
28, 2003. Parties

[[Page 1182]]

do not need to file Initial Briefs in order to file Reply Briefs.
    6. In authorizing the emergency transmission and delivery of 
electric capacity and energy, the Emergency Order limited the service 
provided by CSC for LIPA as follows:

    [T]his order * * * shall be limited to requiring the 
transmission and delivery of such electric capacity and/or energy as 
is necessary in the judgment of the New York Independent System 
Operator to meet the supply and essential reserve margin needs of 
LIPA * * * and * * * prior to exercising its judgment as required by 
this order, the New York Independent System Operator must consult 
with ISO-New England, Inc. to ensure that the scheduling of such 
electric capacity and/or energy will not violate system operating 
criteria * * * (Emphasis added.)

    7. The documents in the Referral indicate that ``the day that DOE 
issued the [Emergency] Order, LIPA contacted the NYISO and remained in 
almost daily telephone and e-mail communication with NYISO to determine 
what those emergency operating and scheduling protocols would be.'' The 
documents further indicate that the ``Implementation Protocol for 
Emergency Operation of the Cross Sound Cable'' (Protocol for Emergency 
CSC Operation) was not made available to LIPA until NYISO sent a 
facsimile transmission to LIPA on September 23, 2002, one week before 
the Emergency Order expired.
    8. To help the Commission understand the reasons for the delay in 
establishing the Protocol for Emergency CSC Operation as ordered by the 
Secretary, and to help the Commission ensure that such a delay does not 
occur again, NYISO and ISO-New England are hereby directed to answer 
the following questions on or before January 31, 2003:
    A. Explain in detail why NYISO and ISO-New England did not 
establish the Protocol for Emergency CSC Operation within a week or 
less of the issuance of the Secretary's Emergency Order.
    B. Explain in detail the processes followed and the reasons why it 
took 38 days to issue the Protocol for Emergency CSC Operation.
    C. Explain whether the same processes would be used if the 
Secretary issued another emergency order. If not, what changes would be 
made?
    D. The fourth paragraph of the Protocol for Emergency CSC Operation 
states:
    All costs associated with energy provided pursuant to the 
[Emergency] Order and this Protocol shall be governed by the Emergency 
Transactions Agreement entered into between the NYISO and the New 
England Power Pool on August 14, 2000.
    (1) Identify and support all costs associated with providing energy 
under the Emergency Order including expenses associated with 
establishing the Protocol for Emergency CSC Operation.
    (2) Provide a copy of the August 14 Emergency Transactions 
Agreement and the protocols used to support such agreement.
    E. Is there a scheduling and operating protocol which will be used 
if another emergency order is issued or when the CSC is fully 
operational?
    9. Any comments parties have with respect to the answers provided 
by the ISOs may be included in separate sections of the Initial or 
Reply Briefs.

The Commission Orders

    (A) Procedures for Commission action on the Referral are hereby 
established as discussed in the body of this order.
    (B) The NYISO and ISO-NE are hereby directed to submit responses, 
as discussed in the body of this order.

By the Commission.


Magalie R. Salas,
Secretary.
[FR Doc. 03-365 Filed 1-8-03; 8:45 am]
BILLING CODE 6717-01-P