[Federal Register Volume 69, Number 112 (Thursday, June 10, 2004)]
[Notices]
[Pages 32541-32542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-1293]



[[Page 32541]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission


Supplemental Notice of Agenda for Technical Conference

June 3, 2004.

Market-Based Rates For Public Utilities, AEP Power Marketing, Inc., AEP 
Service Corporation, CSW Power Marketing, Inc., CSW Energy Services, 
Inc., and Central and South West Services, Inc. (Not consolidated), 
Entergy Services, Inc., Southern Company Energy Marketing L.P., 
Conference on Supply Margin Assessment [Docket Nos. RM04-7-000, ER96-
2495-016, ER96-2495-017, ER97-4143-004, ER97-4143-005, ER97-1238-011, 
ER97-1238-012, ER98-2075-010, ER98-2075-011, ER98-542-006, ER98-542-
007, ER91-569-018, ER91-569-019, ER97-4166-010, ER97-4166-011, and 
PL02-8-000];

    1. The attachment to this supplemental notice provides additional 
information concerning the technical conference to discuss issues 
associated with the rulemaking proceeding on market-based rates that is 
scheduled for June 9, 2004, from 9:30 a.m. to 4:30 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. Members of 
the Commission will participate in the conference. While the Commission 
does not intend the conference discussion to include the merits of any 
issues pending on rehearing in the AEP Power Marketing, Inc., et al. 
proceeding in Docket No. ER96-2495-016, et al., we have included those 
docket numbers out of an abundance of caution since the issues in the 
conference may overlap with issues in the rehearing dockets.
    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 ten 
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.

Market-Based Rates for Public Utilities Technical Conference, June 9, 
2004, 9:30 a.m.-4:30 p.m.

Agenda

    For many years the Commission has conducted the following four-
part test to determine whether an applicant should be granted 
market-based rate authority: (1) Whether the applicant has 
generation market power; (2) whether the applicant has transmission 
market power, (2) whether the applicant can erect barriers to entry, 
and (3) whether there are concerns involving the applicant that 
relate to affiliate abuse and/or reciprocal dealing. The Commission 
recently initiated a rulemaking proceeding with respect to the 
adequacy of the current four-prong analysis and whether and how it 
should be modified to assure that electric market-based rates are 
just and reasonable under the Federal Power Act. The public 
technical conference that is the subject of this notice is the first 
step in this rulemaking proceeding. The purpose of this conference 
will be to frame the issues that will comprise the rulemaking 
proceeding, including a discussion of how all four parts of the 
current test interrelate, as well as what other factors the 
Commission should consider in granting market-based rate 
authorizations.
    Panelists will each be asked to address issues among the 
following in an overview prepared statement, which will be followed 
by questions and general discussion:
    1. To what extent, if any, does the Commission's current four-
part test need to be revised, consolidated or expanded? Are there 
other factors the Commission should consider in granting market-
based rate authorizations?
    2. Should the interim generation market power screens that were 
adopted in the AEP Order \1\ be retained over the long-term?
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    \1\ AEP Power Marketing, Inc., 107 FERC ] 61,018 (2004) (AEP 
Order).
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    3. How do each of the four parts of the test relate to the other 
parts? Should the Commission's review of generation market power and 
transmission market power be more integrated than it is currently? 
How do these two factors interrelate? Should the Commission's 
analysis explicitly address vertical market power issues?
    4. Should the Commission adopt a regional approach to assessing 
market power wherein all jurisdictional entities selling at 
wholesale in a particular region are reviewed for authorization to 
sell at market-based rates simultaneously, rather than the current 
applicant-by-applicant approach? If we adopted such an approach, how 
should we address the associated data and procedural/transition 
issues that would be needed to implement such an approach?
    5. Should there be new Commission regulations promulgated 
expressly for electric market-based rate filings? If so, in what 
areas are such regulations specifically needed?
    6. Transmission specific issues:
    a. How should we calculate transmission access to the market?
    b. Are the current rights under the Order No. 888 transmission 
tariffs sufficient to ensure access to competitive markets?
    c. Did Order No. 888 eliminate the potential for exercise of 
transmission market power? If not, how can transmission market power 
be exercised under the Open Access Transmission Tariff (OATT)? If 
Order No. 888 did not eliminate the potential for expansion of 
transmission market power, what policies are likely to do so? How 
should incentives factor into the analysis?
    d. Is transmission market power a more serious concern than 
generation market power?
    e. How can transmission market power be mitigated?
    f. What is the best method to identify instances where market 
power is being exercised over transmission?
    g. Should a public utility with transmission market power be 
eligible for market-based rate authorization?
    7. Entry specific issues:
    a. As part of the Commission's review of barriers to entry, 
should we examine the planning and expansion process with respect to 
generation siting? If so, how should that be done?
    b. Who should be able to nominate sites for planning purposes?
    c. What elements should go into the planning process?
    d. What actions, if any, should be taken if barriers to entry 
exist that are not caused by any one entity?
    e. What is the role of merchant transmission entry in reducing 
market power?
    8. Affiliate Issues:
    a. Should the Commission adopt different approaches to affiliate 
transactions than it currently does?
    b. How should the history of affiliate violations factor into 
the analysis?
    c. In general, are rules or proper incentives best for market 
efficiency?
    d. What are the benefits and detriments that affiliate 
transactions bring to the market or to customers?
    e. Do our affiliate rules hinder gains from economies of scope?
    f. Is there an efficiency rationale for affiliate transactions 
given our behavioral rules?
    g. Should any revisions to the current code of conduct be made 
and if so, what?
    9. Are there certain entities that should not be granted market-
based rate authority (e.g., trading platforms or banks that loan 
money to potential energy-related competitors)? If so, why?
    10. Should there be revisions to how market-based rates 
associated with ancillary services outside RTOs are currently 
authorized? If so, in what way?

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Panel I

9:30 a.m.-12 p.m.
    (Generation Market Power, Transmission Market Power, Vertical 
Market Power and Barriers to Entry)

    David DeRamus, Partner, Bates White.
    Mark Hegedus, of counsel, Spiegel & McDiarmid, on behalf of 
American Public Power Association.
    Paul Bonavia, President of Commercial Enterprises for Xcel 
Energy.
    Robert Weishaar, Partner, McNees, Wallace & Nurick, on behalf of 
industrial customers.
    Mathew Morey, Senior Consultant, Lauritsr.Christensen 
Associates, on behalf of National Rural Electric Cooperative 
Association.
    Michael Wroblewski, Federal Trade Commission.

Panel II

1:30 p.m.-4:30 p.m.
    (Affiliate Abuse, Other Factors the Commission Should Consider 
in Granting Market-Based Rates, Other Issues (Substantive and 
Procedural) That Should be Addressed in the Rulemaking)

    Julie Simon, Vice President of Policy, Electric Power Supply 
Association.
    Fred Bryant, General Counsel for Florida Municipal Power Agency, 
on behalf of Transmission Access Policy Study (TAPS) Group.
    Gerald Norlander, Chairman of the Electricity Committee of the 
National Association of State Utility Consumer Advocates.
    Diana Moss, Vice President and Senior Research Fellow, American 
Antitrust Institute.
[FR Doc. E4-1293 Filed 6-9-04; 8:45 am]
BILLING CODE 6717-01-P