FERC cited only one California power supplier for selling electricity during Stage III emergencies in May at prices that exceeded the allowed limit established by the Commission.

ISO Energy could be forced to pay refunds amounting to $414,180 unless it can satifactorily justify to FERC the higher prices that it charged for power during the May emergencies. The order cited ISO Energy three separate times, and called into question 36 energy transactions involving the company [EL00-95-037]. It covered the period until May 28, when FERC’s price mitigation plan went into effect for the California market.

ISO Energy was singled out for selling electricity for more than $267/MWh, which was the proxy market-clearing price set by FERC for May. The proxy price was based on an average reported midpoint gas price for “Southern California Gas Company large package” transactions of $11.98/MMBtu; average NOx allowance costs from the Southern California Air Quality Management Distriction NOx Auction of $24.32/lb.; an average NOx emissions rate of 2 lbs/MWh; variable operation-management costs of $2/MWh for public utilities; and a combustion turbine with a heat rate of 18,073/Btu/kWh, according to the FERC order.

This marked the fifth refund order for California electric customers that the Commission has issued during the past couple of months. None of the Houston-based owners of California generating capacity, which had been cited in the previous orders, were named as violators this time around.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.