US FERC finds APS, TEP violated transmission rules
Washington (Platts)--15Dec2004
Two of Arizona's largest investor-owned utilities violated federal electric transmission rules by providing their merchant power units with information on the status of the grid and transmission capacity that were not available to other customers, the US Federal Energy Regulatory Commission said in two orders approved Wednesday. The orders, an outgrowth of random operational audits conducted by the agency's Office of Market Oversight and Investigations, found that both Arizona Public Service and Tucson Electric Power violated commission rules and regulations in the management of their transmission grids by, among other things, failing to make timely data postings on their Web-based Open Access Same-Time Information Systems (OASIS) and by providing favorable treatment to their merchant power subsidiaries. FERC directed APS to return $4-mil in improper revenues it gained through the practices. Of that amount, FERC told APS to spend $2.75-mil for a transmission upgrade project in the Phoenix area and to devote the remaining $1.25-mil to low-income residential energy assistance programs. APS will not be permitted to recover the money through rates. FERC said APS had agreed to establish an office of compliance and directed the new office to provide semiannual reports to the agency for the next two years. TEP was ordered to relinquish about $25,000 FERC said it gained when its merchant subsidiary was given capacity on a line that the utility said was fully subscribed. Both utilities also agreed to fund market monitors in their service territories.
Copyright © 2004 - Platts
Please visit: www.platts.com
Their coverage of energy matters is extensive!!.