Abuses

FERC on Friday ordered IDACORP Inc. subsidiaries Idaho Power Co. and IDACORP Energy to return $6.14 million to customers after finding the utility provided preferential access on its transmission system to its power marketing affiliate between 2000 and 2002, and violated the agency’s standards of conduct for regulated companies.

In the report on the adjournment of the FERC hearing investigating alleged market affiliate abuses by El Paso Natural Gas and its affiliates, which ran in NGI’s Daily Gas Price Index for Tuesday, Aug. 7: Note El Paso executives did not refuse to respond to questions from Judge Wagner. El Paso attorneys declined to put the executives on the stand — which would have subjected them to questions from the California Public Utilities Commission and others — as part of the case, saying El Paso’s case was closed. The attorneys said, however, the executives were willing to respond to the judge’s questions. Wagner did not ask any questions.

Consolidated Edison Inc. called on FERC last Tuesday to enactmechanisms to limit the potential for price spikes in the New Yorkwholesale power market this summer.

Consolidated Edison called on FERC yesterday to protect itscustomers this summer by instituting mechanisms to reduce potentialprice spikes in the New York wholesale power market.

An independent producer has accused Natural Gas Pipeline Companyof America (NGPL) and a number of now-former affiliate companies ofconcocting and carrying out an elaborate scheme that enabled thepipeline to collect fees for gathering that were above the rateallowed by its tariff.

FERC is not doing its job if it hides behind the letter of thelaw and refuses to recognize abuses of market power merely becausethe abusers are staying within the bounds of maximum lawful rates.That was the decision on April 9 of the D.C. Court of Appeals,which found an order by the Federal Energy Regulatory Commission ina case involving rates charged by Southern California Gas”arbitrary and capricious.” (Southern California Edison v. FERC,No. 97-1699). Now Exxon Co. U.S.A. has asked FERC to reopen a caseinvolving Dynegy’s long-term leasing of unsubscribed capacity on ElPaso Natural Gas (RP97-287-010), saying the two cases are directlyrelated.

In one of the first major affiliate abuse decisions to goagainst an unbundling gas utility, the Rhode Island Division ofPublic Utilities and Carriers fined Providence Gas Co. (PGC)$23,000 for violating its affiliate, tariff and numerous otherregulations, and ordered the utility to refund retail gas marketersnearly $300,000.