[Federal Register: January 9, 2003 (Volume 68, Number 6)]
[Notices]
[Page 1181-1182]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja03-33]
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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