FERC on Friday ordered Entergy to provide additional, detailed information about the company’s request for proposals (RFP) process related to several pending power purchase agreements (PPA). Entergy has filed eight long-term PPAs between Entergy affiliates at FERC.

According to the applications, four of the eight PPAs resulted from a selection process initiated by Entergy Services Inc.’s issuance of an RFP for up to 2,150 MW of mid-term and long-term capacity and energy to meet expected reliability needs. Also, Entergy said that the remaining four PPAs were executed at prices that are comparable with contemporaneous life-of-unit bids in the Fall 2002 RFP.

“Pleased be advised that your submittals are deficient,” the May 2 letter order issued by FERC stated. The Commission said that in order for it to have sufficient information to process Entergy’s filings, the company needs to provide additional information related to its RFP process.

Specifically, FERC directed Entergy to explain and support all credit requirements applied to bidders in the RFP and include an explanation of how the credit requirements were applied to such bidders. “To the extent Entergy applied varying credit requirements for bidders, identify those bidders and support the differing requirements.”

Entergy also needs to explain how the credit requirements were applied to Entergy-owned generation as compared with non-affiliated generation.

FERC is also seeking information from Entergy related to transmission capability. The Commission wants to know how Entergy calculated so-called “factor evaluators” used to compare bids between affiliated and non-affiliated generators. Entergy has been directed to provide all supporting documentation for all bids detailing how Entergy made such determinations.

FERC also quizzed Entergy on whether it disallowed or changed the ranking of any bids based on transmission service factors. “If so, please identify and include all documentation supporting Entergy’s decision.”

In addition, the Commission asked the utility to provide it with all rankings prior to the evaluation of transmission factors, as well as all rankings following the review of transmission service factors. “Explain how evaluation of transmission service factors affected rankings.”

Meanwhile, the Commission directed Entergy to hand over copies of all bids that were submitted in response to the Fall 2002 RFP. FERC also wants to take a look at copies of all long-term contracts entered into (both affiliate and non-affiliate) as a result of the RFP or that were based on the results of the RFP.

Entergy must turn over all correspondence and memoranda related to negotiations, whether ongoing or completed, as a result of the Fall 2002 RFP or that were based on the results of the RFP.

FERC also wants copies of all evaluations for each submitted bid, including any notes or memoranda. Entergy must provide a detailed explanation of how each bid was evaluated and why certain bids were chosen over others. “Include all methodologies, calculations and models used to evaluate the bids…and identify those producing the lowest total system costs.”

Entergy must respond within 30 days of the date of the order.

The Electric Power Supply Association (EPSA) in March told FERC that it shouldn’t approve two power purchase agreements (PPAs) filed by Entergy affiliates until Entergy can show that the PPAs were the result of a “fully transparent, fair and non-discriminatory” RFP process.

Entergy’s RFP process is taking so much heat these days that Wayne Leonard, the utility’s CEO, felt it necessary to defend Entergy’s approach to procuring power supplies in a recent conference call with investors.

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