[Federal Register Volume 69, Number 110 (Tuesday, June 8, 2004)]
[Notices]
[Pages 31992-31993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-1266]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PL04-6-000]


Solicitation Processes for Public Utilities; Supplemental Notice 
of Agenda for Technical Conference

May 28, 2004.
    1. The attachment to this supplemental notice provides additional

[[Page 31993]]

information concerning the technical conference to discuss issues 
associated with solicitation processes for power procurement on June 
10, 2004, from 9 a.m. to 12 p.m. (e.s.t.) in the Commission's Meeting 
Room at the Federal Energy Regulatory Commission, 888 First Street, 
NE., Washington, DC. All interested persons are invited to attend. 
Microphones will be available to enable those in the audience to 
participate in the discussion as issues arise.
    2. The conference will be transcribed. Those interested in 
acquiring the transcript should contact Ace Reporters at 202-347-3700 
or 800-336-6646. Transcripts will be placed in the public record 10 
days after the Commission receives the transcripts. Additionally, 
Capitol Connection offers the opportunity for remote listening and 
viewing of the conference. It is available for a fee, live over the 
Internet, by phone or via satellite. Persons interested in receiving 
the broadcast, or who need information on making arrangements, should 
contact David Reininger or Julia Morelli at Capitol Connection (703-
993-3100) as soon as possible or visit the Capitol Connection Web site 
at http://www.capitolconnection.org and click on ``FERC.''
    3. For more information about the conference, please contact Mary 
Beth Tighe at 202-502-6452 or [email protected].

Magalie R. Salas,
Secretary.

Solicitation Processes for Public Utilities Technical Conference, June 
10, 2004, 9 a.m.-12 p.m. (e.s.t.)

Agenda

    In Boston Edison Re: Edgar Electric Company, 55 FERC ] 61,382 
(1991) (Edgar), the Commission held that in analyzing market-based 
rate transactions between an affiliated buyer and seller, the 
Commission must ensure that the buyer has chosen the lowest-cost 
supplier from among the options presented, taking into account both 
price and non-price terms. As such, Edgar addressed the concern in 
that case that utilities would choose to purchase power from their 
affiliates at inflated prices rather than at competitive levels from 
unaffiliated entities. The effect was that such higher costs could 
have been passed on to wholesale (as well as retail) customers. The 
Commission's Edgar policy, which has been in effect since 1991, 
involves a review of power purchase agreements between affiliates to 
determine whether the rate is just and reasonable and whether there 
is an absence of self-dealing. Recently, with the development of 
significant amounts of independent generation in every region, 
competitive alternatives to affiliate purchases have increased. 
Thus, the Commission is interested in having a discussion addressing 
the issues listed below.
    Panelists will each be asked to address issues among the 
following in an overview followed by questions and general 
discussion:
    1. Is the Commission's Edgar policy adequate to ensure that the 
most competitive power procurement choice is being made by utilities 
when affiliates are involved? Should the policy include a 
requirement for a competitive solicitation? If so, how should the 
solicitation be designed?
    2. To the extent you have been involved in solicitation 
processes to date:
    [squf] Please briefly describe the product solicited (e.g., 
power purchase agreement, dispatchable asset-backed contract, firm 
load-following power).
    [squf] Was the competition on price only or also non-price 
factors?
    [squf] How were the following treated: transmission service; 
FTRs; participation by affiliates, including the use of utility 
land/facilities?
    [squf] Discuss creditworthiness screening, conduct of the bid/
auction, post-bid negotiations, regulatory oversight, and 
independent observer.
    3. Prior to initiating a competitive solicitation, should there 
be a collaborative process (outreach) to achieve consensus on issues 
with respect to the solicitation design and the evaluation criteria 
to be used? If so, what should be the characteristics of that 
collaborative process?
    4. Are there ways to ensure that there is no preferential 
dealing among affiliates in soliciting and awarding power purchase 
agreements? If so, what safeguards should be included?
    5. To what extent are transmission service and monopsony power 
factors in the competitive solicitation? What criteria should be 
established under the Commission's Edgar policy to ensure that all 
participants are treated in a non-discriminatory manner?
    6. Should a market monitor or independent entity oversee the 
administration of solicitations in which affiliates are involved? To 
the extent a monitor is involved, what criteria should be 
established to ensure that the monitor is independent of all parties 
participating in the solicitation process? For example, how should 
the monitor be selected? By whom? To whom should the monitor report? 
Who should pay for the monitor's services?
    7. Provide proposals for ``best practice'' competitive 
solicitation methods or principles that could be used to ensure that 
power transactions are the result of a fair, transparent and 
accurate process.
    8. How can FERC and State regulators coordinate in the design 
and oversight of solicitation processes?

Panel I--9 a.m.-10:30 a.m. (e.s.t): John Hilke, Federal Trade 
Commission; Craig Roach, Principal, Boston Pacific Company, Inc.; 
Harvey Reiter, Partner, Stinson, Morrison, Hecker LLP; Ron Walter, 
Executive Vice President--Development, Calpine Corporation; Ed 
Comer, Vice President and General Counsel, Edison Electric 
Institute.
Break--10:30 a.m.-10:45 a.m.
Panel II--10:45 a.m.-12 p.m.: Tom Welch, Chairman, Maine Public 
Utilities Commission; Elizabeth Benson, Energy Associates, CLECO 
Independent Monitor; Ershel Redd, President, Western Region, NRG; 
Ted Banasiewicz, Principal, USA Power LLC.
 [FR Doc. E4-1266 Filed 6-7-04; 8:45 am]
BILLING CODE 6717-01-P