[Federal Register Volume 74, Number 46 (Wednesday, March 11, 2009)]
[Notices]
[Pages 10560-10561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5167]


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DEPARTMENT OF ENERGY

[OE Docket No. EA-343]


Application to Export Electric Energy; Midwest Independent 
Transmission System Operator, Inc.

AGENCY: Office of Electricity Delivery and Energy Reliability, DOE.

ACTION: Notice of application.

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SUMMARY: The Midwest Independent Transmission System Operator, Inc. 
(Midwest ISO) has applied for authority to transmit electric energy 
from the United States to Canada pursuant to section 202(e) of the 
Federal Power Act.

DATES: Comments, protests, or requests to intervene must be submitted 
on or before April 10, 2009.

ADDRESSES: Comments, protests, or requests to intervene should be 
addressed as follows: Office of Electricity Delivery and Energy 
Reliability, Mail Code: OE-20, U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, 20585-0350 (Fax 202-586-8008).

FOR FURTHER INFORMATION CONTACT: Ellen Russell (Program Office) 202-
586-9624 or Michael Skinker (Program Attorney) 202-586-2793.

SUPPLEMENTARY INFORMATION: Exports of electricity from the United 
States to a foreign country are regulated by the Department of Energy 
(DOE) pursuant to sections 301(b) and 402(f) of the Department of 
Energy Organization Act (42 U.S.C. 7151(b), 7172(f)) and require 
authorization under section 202(e) of the Federal Power Act (FPA) (16 
U.S.C. 824a(e)).
    On July 11, 2008, DOE received an application from Midwest ISO for 
authority to transmit electric energy from the United States to Canada. 
Midwest ISO does not own or operate electric generation, transmission 
or distribution facilities nor does it have a franchised electric power 
service territory. Midwest ISO is a not-for-profit, non-stock 
corporation, a ``public utility'' under Part II of the FPA, and a 
``Regional Transmission Organization'' (RTO) approved by the Federal 
Energy Regulatory Commission (FERC) under Order No. 2000, 18 CFR 35.34 
et seq.
    As an RTO, Midwest ISO has authority (referred to as ``functional 
control'') to direct the use of transmission facilities owned, 
operated, and maintained by transmission owning members of Midwest ISO 
for the purpose of providing open access non-discriminatory 
transmission service. In addition, Midwest ISO has administered day-
ahead and real-time energy markets with financial transmission rights 
since April 2005. In its application, Midwest ISO indicated that 
beginning September 9, 2008 (this was later changed to January 6, 2009) 
it would administer a market for operating reserves under its Energy 
and Operating Reserves Markets Tariff (Tariff). In so doing, Midwest 
ISO became a Balancing Authority registered with the North American 
Electric Reliability Corporation (NERC) and is responsible for meeting 
NERC reliability standards applicable to Balancing Authorities, 
including the requirement to enter into agreements with neighboring 
Balancing Authorities for coordination and emergency assistance. These 
agreements may require Midwest ISO to exchange emergency energy with 
Canadian counterparties, including Manitoba Hydro and the Independent 
Electric System Operator (IESO).
    Prior to Midwest ISO's commencing to administer the market for 
operating reserves, emergency energy had been transmitted into Canada 
from the Midwest ISO region by one or more Balancing Authorities or 
Market Participants operating under the Midwest ISO Tariff, pursuant to 
bilateral agreements between the buyer and seller and pursuant to the 
terms and conditions of various export authorizations issued by DOE, 
using international transmission facilities authorized by Presidential 
permits. Not all of the international transmission facilities at the 
Canadian border subject to Presidential permits have been transferred 
to the functional control of Midwest ISO by their owners. Such 
facilities are not subject to the authority of Midwest ISO as an RTO. 
However, Midwest ISO, in its capacity as Reliability Coordinator, has 
the authority to direct actions necessary to preserve the safety and 
reliability of the Eastern Interconnection, which includes Manitoba 
Hydro and IESO. To the extent such direction affects such international 
transmission facilities, it takes into account, and is subject to, the 
conditions of the applicable Presidential permit.
    Effective January 6, 2009, Midwest ISO will be the responsible 
Balancing Authority for implementing the payback of unscheduled energy 
flows to the Eastern Interconnection. Unscheduled, or ``inadvertent,'' 
energy is the difference between the actual metered energy interchange 
and the scheduled energy interchange between two adjacent Balancing 
Authority Areas (previously called ``control areas''). Consequently, 
Midwest ISO may from time to time initiate unilateral payback of 
unscheduled energy resulting in energy flows across border facilities 
with the Canadian Balancing Authorities, or Midwest ISO may enter a 
bilateral schedule for energy exports directly to Manitoba Hydro or the 
IESO to affect the payback of unscheduled energy to those entities.
    Midwest ISO does not take title to electric energy in its market, 
or to energy transmitted out of its market, including electric energy 
exported to Canada. Even pursuant to its role as a

[[Page 10561]]

Balancing Authority, Midwest ISO will not take title to electric energy 
under any circumstances, but will buy or sell such energy ``for and on 
behalf of'' its Market Participants (as defined in the Midwest ISO 
Tariff) and will distribute revenues or collect the costs of such 
energy as set forth in the Tariff.
    In addition, in operating as a Balancing Authority, Midwest ISO 
will be a member of a contingency reserve sharing group that includes 
Manitoba Hydro and proposes to export emergency energy to Manitoba 
Hydro under the terms of the contingency reserve sharing agreement.
    Traditionally, DOE has required that the last entity to hold title 
to the electricity inside the U.S. obtain export authority. The 
rationale being that such an entity could affect the transfer and, 
therefore, impact the operational reliability of the system. Although 
Midwest ISO is not the title holder of the electricity bring exported, 
DOE believes that as a Balancing Authority, Midwest ISO occupies the 
position of affecting the export and as an RTO, has the legal 
responsibility for the reliable operation of the electric system.
    Based on the above, DOE believes that Midwest ISO must obtain 
authorization to export electricity under section 202(e) of the FPA. 
However, because of the fairly recent introduction of different types 
of entities, like RTOs, ISOs, Balancing Authorities, and similarly 
situated entities, each of whom may affect the transmission of electric 
energy from the United States to a foreign country and be responsible 
for the reliable operation of the electric system, DOE is inviting 
comments on the appropriateness of issuing export authorizations to 
entities like Midwest ISO. For the time being, DOE will address the 
question of whether a particular entity needs an export authorization 
on a case-by-case basis. DOE intends to initiate a proceeding in the 
near future to explore the more general question of what types of 
entities need an electricity export authorization from DOE. In that 
proceeding, DOE will be looking for ways to reduce the administrative 
burden on entities engaged in the international electricity market, 
while continuing to satisfy our statutory obligations.
    The electric energy which Midwest ISO proposes to export to Canada 
would be transmitted over the international transmission facilities 
owned by International Transmission Co., Minnesota Power, Inc., 
Minnkota Power Cooperative, Inc., and Northern States Power Company/
Xcel.The construction, operation, maintenance, and connection of each 
of these international transmission facilities to be utilized by 
Midwest ISO has previously been authorized by a Presidential permit 
issued pursuant to Executive Order 10485, as amended.
    On December 22, 2008, Midwest ISO submitted an application for 
emergency temporary authorization to export electric energy to Canada 
in this docket, asserting that FERC had issued a final order on 
December 18, 2008, authorizing Midwest ISO to begin operating its 
Ancillary Services Market on January 6, 2009. The application requested 
that DOE issue an emergency temporary export authorization pending 
completion of this proceeding. On December 24, 2008, DOE granted 
Midwest ISO the temporary authority to export electric energy to Canada 
beginning January 6, 2009 as requested, until final resolution of the 
matter in this proceeding.
    Procedural Matters: Any person desiring to become a party to these 
proceedings or to be heard by filing comments or protests to this 
application should file a petition to intervene, comment, or protest at 
the address provided above in accordance with Sec. Sec.  385.211 or 
385.214 of the Federal Energy Regulatory Commission's Rules of Practice 
and Procedures (18 CFR 385.211, 385.214). Fifteen copies of each 
petition and protest should be filed with DOE on or before the date 
listed above.
    Comments on the Midwest ISO application to export electric energy 
to Canada should be clearly marked with Docket No. EA-343. Additional 
copies are to be filed directly with Gregory A. Troxell, Assistant 
General Counsel, Midwest ISO, P.O. Box 4202, Carmel, Indiana 46082-
4202. A final decision will be made on this application after the 
environmental impacts have been evaluated pursuant to the National 
Environmental Policy Act of 1969, and a determination is made by DOE 
that the proposed action will not adversely impact on the reliability 
of the U.S. electric power supply system.
    Copies of this application will be made available, upon request, 
for public inspection and copying at the address provided above, by 
accessing the program Web site at http://www.oe.energy.gov/permits_pending.htm, or by e-mailing Odessa Hopkins at 
[email protected].

    Issued in Washington, DC, on March 4, 2009.
Anthony J. Como,
Director, Permitting and Siting, Office of Electricity Delivery and 
Energy Reliability.
[FR Doc. E9-5167 Filed 3-10-09; 8:45 am]
BILLING CODE 6450-01-P