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Enron Mail |
On 5/17/00, FERC issued an order accepting Entergy's pro forma
interconnection agreement ("IA") and procedures subject to modification. As I mentioned earlier, Entergy had adopted some of Enron's suggestion (in Enron's comments), including limiting emergencies to not include Entergy's loss of generation. All transmission must be separately arranged through OASIS -- it is not included with an interconnection request. Entergy's interconnection policy will apply to generators that will serve wholesale, as well as unbundled retail. Dismisses EPSA's call for a "model" and approves Entergy's pro forma interconnection agreement, subject to modification. Agreed with Enron that billing disputes should be placed in escrow, not paid to Entergy subject to refund (FERC said that the IA should conform to other aspects of the Order No. 888 tariff--for example, Entergy and customer are responsible for their own negligence). Holds that all other terms of the Order No. 888 pro forma tariff apply to the IA, even if the IA does not repeat all those provisions. Clarifies Tenn. Power case that if a generator connects first and another generator subsequently connects in the same local area and the grid cannot accommodate "receipt" of power without expansion, the new generator must pay costs of expansion. Entergy is required to revise IA to make distinction as to which provisions are pure "interconnection" and which are applicable when transmission/delivery is also requested (on OASIS). Entergy is required to attempt to complete the interconnection studies in a specific timeline (60 days for 1st iteration --system impact), and to provide a statement that Entergy will notify applicant of any delay with an explanation for the delay (Entergy had included no timelines). If applicant and Entergy cannot agree on IA terms, Entergy must file the unexecuted agreement at FERC for FERC to decide. FERC will not initiate a "generic" proceeding at this time, but encourages all transmission providers to file procedures at FERC. Approves Entergy's credits for "optional" upgrades (required to transport power away from the plant), but requires Entergy to file an explanation of how the credits work. Entergy will only include prior queued interconnection requests in subsequent studies once they have signed an interconnection agreement (to show more intent to actually complete the project). This does not mean that failure to execute an IA results in removal from the queue, just that the generator may be subject to different actual interconnection costs when it connects. This is a risk that FERC says is inherent in interconnection. Entergy will also post its queue on OASIS. Reactive power must only be supplied when generator is operating. Entergy cannot keep the initial $10,000 deposit, unless actual costs are $10,000 or greater (generator must pay actual costs of studies). Per Enron's comments, Entergy must pay for energy taken during an emergency (or explain why that is inappropriate). Per Enron's comments, Entergy must explain the requirement that the generator pays for subsequent changes to Entergy's transmission system. Entergy must submit a compliance tariff within 30 days. Let me know if you would like a copy of the order.
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