FERC Order on MAPP Refunds

EPMI won a moral as well as financial victory today in the continuing MAPP
refund proceeding. In response to EPMI's protest of MAPP's refund report,
FERC issued an order rejecting MAPP's report, finding that MAPP erred in
failing to make total refunds to EPMI and others. As you may recall, in
response to the complaint filed by EPMI in 1997, FERC issued an order in
April, 1999, finding that MAPP had overcharged EPMI and other transmission
customers for transmission service. FERC ordered MAPP to make refunds to
EPMI and the other transmission customers.

In order to make refund payments to customers, MAPP sought payment from its
transmission owning members. One transmission owning member, Nebraska Public
Power District (NPPD), refused to pay MAPP, arguing that it is a
non-jurisidictional entity and should not have to pay FERC-ordered refunds.
Because NPPD refused to pay MAPP, MAPP refused to refund to transmission
customers those amounts assessed against NPPD. When MAPP filed its refund
report with FERC (as required by FERC in the April order), MAPP stated that
it was not refunding those amounts owed by NPPD. EPMI protested MAPP's
report, arguing that MAPP is responsible for paying the full amount of
refunds, regardless of its dispute with NPPD.

In its order issued today, FERC rejects MAPP's filing, stating that "[w]e
agree with Enron." (This may be the first time FERC has ever uttered that
phrase.) FERC states that Enron and the other customers are entitled to the
full amount of refunds, and MAPP cannot use its dispute with NPPD to escape
its obligation to pay full refunds. While FERC does not address the issue of
whether MAPP is a public utility itself (an argument we made in our protest),
FERC does state that it has the authority to order MAPP's jurisdictional
public utility members (through MAPP) to pay the full amount of refunds owed.
FERC directs MAPP to refund the full amounts owed and to submit a revised
refund report.