FERC Chairman Pat Wood’s normally sunny demeanor quickly turned to one of agitation last Wednesday after Commission staff briefed him and other Commissioners on an order that directs Wisconsin Electric Power Co. (WEPCO) to explain apparent factual conflicts relating to the separation of control area and merchant function employees.

“Without judging that issue, I would like to say that less than candid representations by any party to this Commission are unacceptable and should result in a very severe penalty,” Wood said. “I look forward to finding out exactly what happened here,” he added.

“I am very agitated by this,” Wood said. “I would much rather change diapers than be listening to this stuff, but this is my job and I get paid to do it and I am very much looking forward to the responses we get from WEPCO.”

WEPCO, a subsidiary of American Transmission Co. (ATC), previously filed at FERC to withdraw its standards of conduct as no longer being necessary. WEPCO noted that all of its transmission assets had been acquired by ATC.

Wisconsin Public Power Inc. (WPPI) protested WEPCO’s filing, voicing concern about the possible sharing of space by control area and merchant function employees and the attendant unequal access to data.

WEPCO answered the protest by saying that all its transmission facilities were acquired by ATC and that WEPCO employees were bound by ATC’s standards of conduct. WEPCO also said that its employees working under contract to ATC for transmission were working for ATC and did so independently of any WEPCO merchant function employee. FERC relied upon these representations in issuing an order in February related to ATC’s revised standards of conduct.

WPPI has informed the Commission that although ATC may have acquired title, WEPCO employees still operate the control area facilities, they share space with the merchant function employees and there’s the very real possibility of unequal access to data.

According to a FERC staff member, ATC has confirmed that WEPCO employees operate the control area facilities and that there was unrestricted access to certain data from Jan. 1, 2001 through March 8, 2002. “ATC says they have put an end to that,” the staff member noted.

“We are concerned that WEPCO may have been somewhat less than candid in its representations to the Commission,” the FERC staffer told FERC Commissioners.

The Commission is seeking information necessary to verify the essential facts involved in the case “before we make an informed judgement as to what further steps are appropriate,” the staff member noted.

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