I think this is for you.

---------------------- Forwarded by Susan M Scott/HOU/ECT on 04/19/2001 09:48 AM ---------------------------
   
	  From:  Christi L Nicolay                           04/19/2001 09:31 AM	
		


To:	Susan M Scott/HOU/ECT@ECT
cc:	 
Subject:	Entities that do not need FERC power marketing authorization


---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/19/2001 09:31 AM ---------------------------
   
	  From:  Christi L Nicolay                           04/18/2001 05:44 PM	
		


To:	Paul Kaufman/PDX/ECT@ECT, Jeff Brown/NA/Enron@Enron, Ron McNamara/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Aleck Dadson/TOR/ECT@ECT, Daniel Allegretti/NA/Enron@Enron, Howard Fromer/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON, Tom Hoatson/NA/Enron@Enron, Steve Montovano/NA/Enron@Enron, Jean Ryall/NA/Enron@ENRON, Tom Chapman/HOU/ECT@ECT, Janine Migden/NA/Enron@Enron, Dave Mangskau/Corp/Enron@ENRON, Dan Staines/HOU/ECT@ECT, Mike Roan/ENRON@enronXgate, Joe Connor/NA/Enron@Enron, Kerry Stroup/NA/Enron@Enron, Steve Walton/HOU/ECT@ECT, Mary Hain/HOU/ECT@ECT, Alan Comnes/PDX/ECT@ECT, Susan J Mara/NA/Enron@ENRON, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andy Rodriquez/Enron@EnronXGate, Lloyd Will/HOU/ECT@ECT, steve.wang@enron.com, ebaughm@enron.com, terri.clynes@enron.com, oscar.dalton@enron.com, doug.sewell@enron.com, kcompea@enron.com, mike.e.kelly@enron.com, gary.justice@enron.com, patrick.hanse@enron.com, Karla Compean/Enron@EnronXGate, Kerry Stroup/NA/Enron@Enron, Dave Mangskau/Corp/Enron@ENRON, Jeff Brown/NA/Enron@Enron, Russell Ballato/NA/Enron@Enron, Don Baughman/HOU/ECT@ECT, Matt Lorenz/HOU/ECT@ECT, Jason Choate/Corp/Enron@ENRON, Maria Valdes/Corp/Enron@Enron, John Kinser/HOU/ECT@ECT, Peter Makkai/NA/Enron@Enron, Jeff King/Corp/Enron@Enron, Robert Benson/Corp/Enron@ENRON, Fletcher J Sturm/HOU/ECT@ECT, Berney C Aucoin/HOU/ECT@ECT, Brad Morse/HOU/ECT@ECT, ozzie.pagan@enron.com, heather.kroll@enron.com, david.fairley@enron.com, george.mccormick@enron.com, wjennin@enron.com, joseph.wagner@enron.com, elizabeth.johnston@enron.com, bill.rust@enron.com, Reagan Rorschach/Enron@EnronXGate, Edith Cross/HOU/ECT@ECT, Berney C Aucoin/HOU/ECT@ECT, Jennifer Bagwell/Enron@EnronXGate, Billy Braddock/Enron@EnronXGate, mike.curry@enron.com, drew.tingleaf@enron.com, cahn@enron.com, Edith Cross/HOU/ECT@ECT, Greg Trefz/Corp/Enron@ENRON, Berney C Aucoin/HOU/ECT@ECT, Michelle Parks/Enron@EnronXGate, jader@enron.com, Michael Brown/Enron@EnronXGate, mark.bernstein@enron.com, john.llodra@enron.com, janelle.scheuer@enron.com, George Wood/Corp/Enron@Enron, David Guillaume/Enron Communications@Enron Communications, joe.gordon@enron.com, splauch@enron.com, jennifer.n.stewart@enron.com, tom.dutta@enron.com, Posey Martinez/HOU/ECT@ECT, Jim Meyn/NA/Enron@Enron, Berney C Aucoin/HOU/ECT@ECT, Pearce W Hammond/Enron@EnronXGate, Garrett Tripp/TOR/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Robert Frank/NA/Enron@Enron, Elizabeth Sager/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron, David Portz/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Michael Etringer/HOU/ECT@ECT, Chris Lackey/PDX/ECT@ECT, Vicki Sharp/HOU/EES@EES, Tim Belden/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Ray Alvarez/NA/Enron@ENRON, Steve Van Hooser/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT
cc:	 

Subject:	Entities that do not need FERC power marketing authorization

We have been getting questions about the ability of potential customers to sell power onto the grid to EPMI.  Below is a brief outline of the FERC licenses required.  Customers other than those listed below (including non-QF industrial on site generators) need a power marketer license from FERC.  In most cases, such customers do not need to file for EWG status (unless their primary business is as a utility, like Enron).  

In addition, both EPMI and EES filed at FERC for authorization to perform certain power marketer license functions on behalf of industrial on-site generation customers.  We expect the authorization within a month.  I'll let you know when we receive it and what we can do for customers.

---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/18/2001 05:22 PM ---------------------------


"Andrea Settanni" <asettanni@bracepatt.com> on 04/18/2001 05:17:11 PM
To:	<christi.l.nicolay@enron.com>
cc:	"Dan Watkiss" <dwatkiss@bracepatt.com> 

Subject:	Entities that do not need power marketing authorization


Christi-

This email briefly responds to your question whether state agencies or municipalities and qualifying facilities ("QFs") must obtain power marketing authorization.  The answer is no.

With regard to state agencies or municipalities, section 201(f) of the Federal Power Act ("FPA") states that no provision of Part II of the FPA, which governs the regulation of electric utility companies engaged in interstate commerce, "shall apply to, or be deemed to include, the United States, a State or any political subdivision of a state, or any agency, authority, or instrumentality of any one or more of the foregoing, or any corporation which is wholly owned, directly or indirectly, by any one or more of the foregoing, or any officer, agent, employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto."

Section 205 of the FPA, which would would otherwise require an entity to have rates for wholesale sales of power on file with FERC, does not apply to state agencies and municipalities.

With regard to whether QFs need power marketing authorization, most QFs are exempt (some small power production facilities are not exempt) from most provisions of the FPA, including section 205, which requires public utilities making sales of electric energy for resale in interstate commerce to file rate schedules with FERC.  QFs are instead regulated under PURPA, which authorizes utilities to purchase power from QFs at the purchaser's avoided cost.  FERC decisional precedent indicates that a QF can lawfully sell at market-based rates without seeking market-based rate authorization from FERC, but that it may nevertheless be prudent for a QF to seek FERC acceptance of a market-based rate schedule that would provide protection in the event QF status is lost.

Let me know if you need anything else.



Andrea M. Settanni
Bracewell & Patterson, L.L.P.
2000 K Street, N.W.
Suite 500
Washington, D.C.  20006-1872
(202) 828-7631 (phone)
(202) 857-2128 (fax)
asettanni@bracepatt.com