In an effort to improve its power market monitoring capabilitiesin light of the price spikes and market disruptions that occurredlast summer, FERC last week changed the reporting requirements forthe 500-600 licensed power marketers.

The Commission said it intends to remove a waiver of its rulesthat was granted to power marketers and power producers withmarket-based rates that allowed them to refrain from filing theirlong-term contracts with their customers. The change puts powermarketers on a more level playing field with traditional utilities,which currently have to file their long-term agreements.

“There are strong arguments here that we should support greaterprice visibility in the electric power market as a means of helpingcompetitive markets grow,” said Chairman James J. Hoecker. “Lastsummer’s problems in the Midwest, for example, were exacerbated bya lack of timely information and accurate pricing data. …..Thetime perhaps has come, as this Commission moves into more of amarket-monitoring mode, to take a more comprehensive look at ourdata needs and our current data requirements to assess theirappropriateness and effectiveness.”

Commissioner Vicky A. Bailey said she has thought for some timethat treating marketers differently than traditional utilities forpurposes of reporting power sales transactions gave an unfaircompetitive advantage to the power marketers. And CommissionerWilliam L. Massey noted that power marketers have been enteringinto more long-term arrangements. “…..[W]e can no longer justifyhaving one set of reporting requirements apply to power marketersand another apply to traditional utilities. Information is the fuelof the marketplace and I think that this order respects thatprinciple,” he said.

FERC now will treat power marketers much like traditional publicutilities. Both would now be required to file actual serviceagreements for their long-term transactions within 30 days afterthe commencement of service. The effective date of the order isbeing delayed pending action on any requests for rehearing that maybe filed.

Rocco Canonica

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