In an effort to improve its power market monitoring capabilitiesin light of the price spikes and market disruptions that occurredlast summer, FERC yesterday changed the reporting requirements for600 power marketers. The Commission said it intends to remove awaiver of its rules that was granted to power marketers and powerproducers with market-based rates that allowed them to refrain fromfiling their long-term contracts with their customers. The changeputs power marketers on a more level playing field with traditionalutilities, 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. .The timeperhaps 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.

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