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FERC Issues Order to Fred Meyer Stores, Inc. on Market-Based Rate Authorization(Targeted News Service Via Acquire Media NewsEdge) WASHINGTON, July 8 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order: In Reply Refer To: Fred Meyer Stores, Inc. Docket No. ER11-3615-000 Mr. Kurt J. Boehm, Esq. Attorney for Fred Meyer Stores, Inc. Boehm, Kurtz & Lowry 36 East Seventh Street Suite 1510 Cincinnati, Ohio 45202 Reference: Market-Based Rate Authorization Dear Mr. Boehm: On May 20, 2011, you filed on behalf of Fred Meyer Stores, Inc. (Fred Meyer) an application for market-based rate authority with an accompanying tariff. The proposed market-based tariff provides for the sale of energy, capacity, and ancillary services at market-based rates. Fred Meyer requests waivers commonly granted to similar market-based rate applicants. Your filing was noticed on May 23, 2011, with comments, protests or interventions due on or before June 10, 2011. None was filed. Pursuant to the authority delegated to the Director, Division of Electric Power Regulation - West, under 18 C.F.R. section 375.307, your submittal filed in the referenced docket is accepted for filing, effective July 22, 2011, as requested. Based on your representations, Fred Meyer meets the criteria for a Category 1 seller in all regions and is so designated. You state that Fred Meyer is constructing and will own and operate a 495.88 kilowatt solar-powered facility located in Clackamas County, Oregon and that its entire output will be sold to the Portland General Electric, Co. (PGE). You add that Fred Meyer is wholly owned by the Kroger Co. and is not affiliated with any entity that owns or controls any generation or transmission facilities in the PGE balancing authority area. Further, you affirmatively state that Fred Meyer has not erected barriers to entry and will not erect barriers to entry into the relevant market. Fred Meyer seeks Category 1 seller status in all regions. You represent that Fred Meyer and its affiliates do not own, operate or control generation over 500 megawatts in aggregate per region. You further represent that Fred Meyer neither owns nor is affiliated with transmission facilities in any of the regions. You add that Fred Meyer is not affiliated with any franchised public utilities and raises no other vertical market power issues. Therefore, you state that Fred Meyer satisfies the requirements for Category 1 seller status in all regions. Market-Based Rate Authorization The Commission allows power sales at market-based rates if the seller and its affiliates do not have, or have adequately mitigated, horizontal and vertical market power. You state that all of Fred Meyer's generating capacity is fully committed under long term power purchase agreements thus it does not have any uncommented capacity in the PGE balancing authority area. Based on your representations, Fred Meyer's submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power and vertical market power. Fred Meyer's request for waiver of Subparts B and C of Part 35 of the Commission's regulations requiring the filing of cost-of-service information, except for sections 35.12(a), 35.13(b), 35.15 and 35.16 is granted. Fred Meyer's request for waiver of Part 41, Part 101, and Part 141 of the Commission's regulations concerning accounting and reporting requirements is granted with the exception of 18 C.F.R. sections 141.14 and 141.15. Notwithstanding the waiver of the accounting and reporting requirements here, Fred Meyer is expected to keep its accounting records in accordance with generally accepted accounting principles. Fred Meyer requests blanket authorization under Part 34 of the Commission's regulations for all future issuances of securities and assumptions of liability. A separate notice was published in the Federal Register establishing a period during which protests could be filed. None was filed. Fred Meyer is authorized to issue securities and assume obligations or liabilities as guarantor, indorser, surety, or otherwise in respect of any security of another person; provided that such issue or assumption is for some lawful object within the corporate purposes of Fred Meyer, compatible with the public interest, and reasonably necessary or appropriate for such purposes. Fred Meyer must file electronically with the Commission Electric Quarterly Reports. Fred Meyer further must timely report to the Commission any change in status that would reflect a departure from the characteristics the Commission relied upon in granting market-based rate authority in accordance with Order No. 697. This action does not constitute approval of any service, rate, charge, classification, or any rule, regulation, or practice affecting such rate or service provided for in the filed documents; nor shall such action be deemed as recognition of any claimed contractual right or obligation affecting or relating to such service or rate; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against any of the applicant(s). This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R section 385.713. Questions regarding the above order should be directed to: Federal Energy Regulatory Commission Attn: Ryan Anderson Phone: (202) 502-8122 Office of Energy Market Regulation 888 First Street, N.E. Washington, D.C. 20426 Sincerely, Steve P. Rodgers, Director Division of Electric Power Regulation - West _______________ 1. Fred Meyer requests authorization to sell ancillary services in the markets administered by PJM Interconnection, L.L.C. (PJM), New York Independent System Operator, Inc. (NYISO), ISO New England Inc. (ISO-NE), California Independent System Operator Corp. (CAISO), and Midwest Independent Transmission System Operator, Inc. (MISO). Fred Meyer also requests authorization to engage in the sale of certain ancillary services as a third-party provider in other markets. 2. Market-Based Rates for Wholesale Sales of Electric Energy, Capacity and Ancillary Services by Public Utilities, Order No. 697, FERC Stats. & Regs. 31,252, at P 848-50, clarified, 121 FERC 61,260 (2007), order on reh'g, Order No. 697-A, FERC Stats. & Regs. 31,268, clarified, 124 FERC 61,055, order on reh'g, Order No. 697-B, FERC Stats. & Regs. 31,285 (2008), order on reh'g, Order No. 697-C, FERC Stats. & Regs. 31,291 (2009), order on reh'g, Order No. 697-D, FERC Stats. & Regs. 31,305 (2010). 3. Order No. 697, FERC Stats. & Regs. 31,252 at P 62, 399, 408, 440. 4. The next time you make a market-based rate filing with the Commission, you must include a revised tariff in compliance with Appendix C - Limitations and Exemptions Regarding Market-Based Rate Authority to include appropriate citations. Niagara Mohawk Power Corporation, 121 FERC 61,275 (2007) at P 8. See also, Order No. 697-A, FERC Stats. & Regs. 31,268 at P 384. 5. Citizens Energy Corp., 35 FERC 61,198 (1986); Citizens Power and Light Corp., 48 FERC 61,210 (1989) (Citizens Power); Enron Power Marketing, Inc., 65 FERC 61,305 (1993), order on reh'g, 66 FERC 61,244 (1994) (Enron). 6. Citizens Power, 48 FERC 61,210; Enron, 65 FERC 61,305. 7. Revised Public Utility Filing Requirements, Order No. 2001, FERC Stats. & Regs. 31,127, reh'g denied, Order No. 2001-A, 100 FERC 61,074, reh'g denied, Order No. 2001-B, 100 FERC 61,342, order directing filing, Order No. 2001-C, 101 FERC 61,314 (2002), order directing filing, Order No. 2001-D, 102 FERC 61,334 (2003). Attachments B and C of Order No. 2001 describe the required data sets for contractual and transaction information. Public utilities must submit Electric Quarterly Reports to the Commission using the EQR Submission System Software, which may be downloaded from the Commission's website at http://www.ferc.gov/docs-filing/eqr.asp. 8. Reporting Requirement for Changes in Status for Public Utilities with Market-Based Rate Authority, Order No. 652, FERC Stats. & Regs. 31,175, order on reh'g, 111 FERC 61,413 (2005); 18 C.F.R. section 35.42 (2010). TNS CT21CT-110709-3476489 61ChengTacorda (c) 2011 Targeted News Service |