On 3/30/2000, FERC issued an order accepting InPower's market based rates 
schedule that would permit entities that own generation to meet their own 
loads or for back up purposes (IPPs) to sell power at market based rates to 
InPower (on a profit share basis).  InPower made the filing stating it 
estimated that IPPs in MAIN (and, specifically, Wisconsin) could supply a 
substantial portion of the summer energy shortfalls (FERC did not limit 
ImPower to IPPs in MAIN).  InPower did not name any specific IPPs; however, 
to be eligible under ImPower's program, an IPP must control generation 
primarily for the purpose of meeting on-site demand or providing back-up 
generation and have such generation located on its premises or premises 
approved by the local utility.  Further, the generation must be capable of 
producing electricity either synchronous with the local utilities' grid or 
commensurate with agreements with the local utility.  Total sales made by 
IPPs in ImPower's program would not exceed 1000 MW/ hour.  The IPPs are in 
businesses other than the sale of electricity and are simply seeking 
"incremental return on the often-unused capacity of their generation assets."

When an IPP participates in ImPower's program, it becomes subject to FERC's 
jurisdiction as a "public utility."  

Jacksonville Electric Authority (JEA) protested ImPower's filing stating it 
allows retail customers to arbitrage retail and wholesale power markets by 
purchasing power at average, embedded cost retail rates and simultaneously 
using their generating facilities to sell power at wholesale to ImPower (at 
peak times).  FERC addressed JEA's concerns by saying that the IPPs cannot 
violate any rules and requirements properly imposed on the retail sales made 
to those suppliers.

This order allows ImPower (as an aggregator) to make the required quarterly 
filings for the IPPs and the IPPs do not have to apply for separate market 
based rates authority.  The are some additional reporting requirements FERC 
waived for the IPPs: accounting and reporting, issuance of securities and 
interlocking directorates (an affidavit is still needed).  I do not know if 
the IPPs are still required to become Exempt Wholesale Generators (EWGs), but 
will check on that.  EWG approval takes 60 days (plus filing preparation 
time).

The Enron Industrial group may want to consider making a similar type of 
filing.  Please let me know if you would like a copy of the filing or order.