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Frequently Asked Questions (FAQs)
Power Marketers
1. How can a power marketer demonstrate lack of market power?
A power marketer can demonstrate lack of market power through a declaratory statement that neither the power marketer nor its affiliates own or control generation or transmission, or have a franchised service area for the sale of electricity at retail.
If a power marketer or its affiliates own or control electric generation or transmission facilities, it is required to perform a market dominance study. [See Louisville Gas & Electric Company, 62 FERC 61,016 (1993)
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The applicant can demonstrate the lack of market power if it can show that it, together with its affiliates: (1) does not dominate the generation of power in the relevant market; (2) lacks the ability to block buyers from reaching other sellers using transmission facilities which it owns or controls; and (3) cannot erect or control any other barrier to market entry.
If a power marketer or its affiliates own or control electric generation or transmission facilities, it is required to perform a market dominance study. [See Louisville Gas & Electric Company, 62 FERC 61,016 (1993)
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The applicant can demonstrate the lack of market power if it can show that it, together with its affiliates: (1) does not dominate the generation of power in the relevant market; (2) lacks the ability to block buyers from reaching other sellers using transmission facilities which it owns or controls; and (3) cannot erect or control any other barrier to market entry.
2. How can a power marketer demonstrate lack of market power in generation?
If the applicant is affiliated with generation that can be sold in wholesale bulk power markets, an analysis demonstrating lack of generation dominance in the respective market is required.
Lack of market power in generation can be as simple as demonstrating; for each generating unit owned or controlled by the applicant or its affiliates that it is: (a) used internally, such as in an industrial or commercial site; (b) fully committed to a purchaser under long-term contract; or (c) subject to market-based pricing already approved by the Commission.
If a power marketer acquires a generation or transmission facility, the Commission must be notified. A generation dominance analysis may be necessary if the output of the generation facility is not totally committed under a long-term contract, or is authorized to sell under market-based rates.
Lack of market power in generation can be as simple as demonstrating; for each generating unit owned or controlled by the applicant or its affiliates that it is: (a) used internally, such as in an industrial or commercial site; (b) fully committed to a purchaser under long-term contract; or (c) subject to market-based pricing already approved by the Commission.
If a power marketer acquires a generation or transmission facility, the Commission must be notified. A generation dominance analysis may be necessary if the output of the generation facility is not totally committed under a long-term contract, or is authorized to sell under market-based rates.
3. How can a power marketer demonstrate lack of transmission dominance?
The Commission has determined that transmission market power may be mitigated by the filing of an open-access transmission tariff. [See Heartland Energy Services, Inc. 68 FERC 61,223 (1994) ].
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4. How does FERC handle name conflicts with other power marketers?
The Commission has no authority under the Federal Power Act to direct the modification of, or otherwise limit, the name a filing party chooses to call itself. Thus, the Commission will not reject a filing upon a claim that the applicant's choice of name could cause confusion with another entity with a similar name. [See Direct Access Management, LP, 75 FERC 61,112 (1996)].
5. What are the regulations that are generally waived for power marketers?
The following regulations are generally waived for power marketers:
Subparts B and C of Part 35
regarding the filing of rate schedules, except for Sections 35.12(a) , 35.13(b) , 35.15 .
Subparts B and C of Part 35
regarding the filing of rate schedules, except for Sections 35.12(a) , 35.13(b) , 35.15 . - Part 41, regarding accounts, records, and memoranda;
- Part 101, regarding the uniform system of accounts;
- Part 141, regarding statements and reports
6. Where can I get copies of filings made by power marketers?
Filings made by power marketers and related orders issued by the Commission may be found in eLibrary by using the docket number. This includes any amendments to the application which were subsequently filed by the power marketer. You may also get copies from the Public Reference Room.
7. Where can I find docket numbers associated with filings by power marketers?
There is a spreadsheet available that has power marketers with market-based rate authority also includes docket numbers, this can be found in our Market-Based Rates Section.
8. How should the power marketer address affiliate sales in Rate Schedule FERC Form 1?
If a power marketer has affiliated public utilities with franchised service areas and captive customers, its rate schedule must include provisions regarding affiliate sales. If not, the rate schedule need not include any restrictions on sales to affiliates. [See USGen Power Services, L.P., 73 FERC 61,302 (1995) ].
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