# Application to Export Electricity Enron Power Marketing, Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-27191 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** November 2, 1994 ## Text DEPARTMENT OF ENERGY Office of Fossil Energy [FE Docket No. EA-102] Application to Export Electricity Enron Power Marketing, Inc. AGENCY: Office of Fossil Energy, DOE. ACTION: Notice of application. ----------------------------------------------------------------------- SUMMARY: Enron Power Marketing, Inc., (Enron) has requested authorization to export electric energy to Mexico. Enron is a marketer of electric energy. It does not own or control any electric generation or transmission facilities. DATES: Comments, protests, or requests to intervene must be submitted on or before January 3, 1995. ADDRESSES: Comments, protests, or requests to intervene should be addressed as follows: Office of Coal & Electricity (FE-52), Office of Fuels Programs, Fossil Energy, U.S. Department of Energy, 1000 Independence Avenue, S.W., Washington, D.C. 20585. FOR FURTHER INFORMATION CONTACT: Ellen Russell (Program Office) 202- 586-9624 or Michael T. Skinker (Program Attorney) 202-586-6667. SUPPLEMENTARY INFORMATION: Exports of electricity from the United States to a foreign country are regulated and require authorization under section 202(e) of the Federal Power Act. On October 4, 1994, Enron filed an application with the Office of Fossil Energy (FE) of the Department of Energy (DOE) for authorization to export electric energy to Mexico pursuant to section 202(e) of the Federal Power Act. Enron owns no generation or transmission facilities but has been certified by the Federal Energy Regulatory Commission (FERC) as a power marketer. Enron expects the majority of its transactions to be short-term sales of electricity for which contracts have yet to be negotiated. This is the first application for export that FE has accepted from an individual entity that does not own or operate physical facilities. The FE decision to accept an application from a power marketer, as opposed to the ``traditional'' electric power entities which own and/or operate physical facilities, is based on the marketer taking possession of the electric energy inside the United States. This situation is distinguished from the power broker which simply facilitates a sale of electric energy without ever taking ownership of the commodity. The electric energy Enron proposes to transmit to Mexico would be purchased from electric utilities and Federal power marketing agencies. Enron asserts that such energy would be surplus to the requirements of the entities from which it would be purchased. Enron would arrange for the exported energy to be wheeled from the selling entities, over existing domestic transmission facilities, and delivered to the foreign purchaser over one or more of the following international transmission lines: San Diego Gas and Electric Company's (SDG&E) 230-kilovolt (kV), Miguel-Tijuana transmission line (PP-68); the SDG&E 69-kV line at San Ysidro (PP-49); the SDG&E 230-kV, Imperial Valley-La Rosita line (PP- 79); El Paso Electric Company's 115-kV lines at Diablo, New Mexico (PP- 92) and Ascarate, Texas (PP-48-A); Central Power and Light Company's 138-kV and 69-kV transmission lines at Brownsville, Texas (PP-94); and the 138-kV transmission lines permitted to Mexico's Comision Federal de Electricidad at Eagle Pass (PP-50), Loredo (PP-57), and Falcon Dam (PP- 57) in Texas. Enron has suggested that the initial FE authorization be sufficient for all short-term exports of 90 days duration or less, at unspecified rates of transmission, over any of the international transmission facilities identified above. For exports over 90 days duration, Enron has suggested that it notify FE prior to commencing exports and that it provide the following information: (1) The name of the purchaser(s); (2) the term of the agreement; (3) the contract transmission route(s) and the name of the companies providing transmission wheeling services; (4) the related FERC Rate Schedule, if applicable; and (5) the point(s) of exportation. Enron further suggests that FE publish a notice of the proposed transaction in the Federal Register, stating that the transaction would be deemed approved and allowed to commence unless, within 10 days of publication of such notice, (1) a protest is filed, or (2) FE notifies Enron that the transaction is not approved. Subject to the foregoing, Enron could commence exportation at the end of a 10-day comment period. In the case of either a protest or notification of disapproval by FE, exports could not commence without specific authorization by FE. Before FE takes any final action on applications to export, it first must determine that the proposed action will not impair the sufficiency of electric supply within the United States or will not impede or tend to impede the coordination in the public interest of facilities in accordance with section 202(e) of the Federal Power Act. For applications from ``traditional'' electric power systems, the standard procedure is for the applicant to submit various technical studies which demonstrate the operation of the regional electric power supply system with the applicant exporting specified levels of power over identified international transmission lines. The applicant also is required to demonstrate that it would have sufficient generating capacity to sustain the proposed export under the terms and conditions of its export agreement, while still complying with any established reserve criteria. Since marketers generally could not be seen as having any ``native load'' requirements, the latter criterion of maintaining sufficient reserve margins appears inappropriate and unnecessary in this instance. Conversely, FE feels that the issue of coordinated use of regional transmission (i.e., parallel path flow) becomes more critical in the case of marketers because of the unspecified nature of the transactions, in terms of the magnitude and sources of the export, and the export points. FE recognizes the right of the marketer to compete in the electric power arena, as well as the legitimate reliability/operating concerns of the ``traditional'' electric power systems. Therefore, FE is proposing an alternative means for determining the reliability impacts in the case of exports by marketers. In lieu of the technical studies (power flow, transient stability, etc.) usually submitted in support of an export application, FE will consider accepting executed transmission wheeling/access agreements between the marketer/applicant and the owners of the transmission systems reasonably expected to be involved in providing transmission service to the export point. FE is considering requiring the submission of these transmission access agreements prior to any exports (short- or long-term) occurring over any particular export point. If an export order is granted, the applicant could ``activate'' any or all export points by submitting appropriate transmission agreements. After submission of the agreement(s), the applicant would be permitted to engage in short-term exports immediately, and long-term exports subject to the procedures discussed above. FE is soliciting comments particularly on the procedures it is considering for addressing electric reliability concerns and the authorizing of exports of longer than 90 day duration. Procedural Matters Any person desiring to be heard or to protest this application should file a petition to intervene or protest at the address provided above in accordance with Secs. 385.211 or 385.214 of the Rules of Practice and Procedure (18 CFR 385.211, 385.214). Any such petitions and protests should be filed with the DOE on or before the date listed above. Additional copies of such petitions to intervene or protests also should be filed directly with: Steven J. Kean, Vice President, Regulatory Affairs, Enron Power Marketing, Inc., PO Box 1188, Houston, Texas 77251-1188. (710) 853-1586. FAX (713) 646- 3490 and David B. Ward, Flood & Ward, 1000 Potomac Street, NW, Suite 402, Washington, DC 20007. (202) 298-6910. FAX (202) 298-6914. Pursuant to 18 CFR 385.211, protests and comments will be considered by the DOE in determining the appropriate action to be taken, but will not serve to make protestants parties to the proceeding. Any person wishing to become a party must file a petition to intervene under 18 CFR 385.214. Section 385.214 requires that a petition to intervene must state, to the extent known, the position taken by the petitioner and the petitioner's interest in sufficient factual detail to demonstrate either that the petitioner has a right to participate because it is a State Commission; that it has or represents an interest which may be directly affected by the outcome of the proceeding, including any interest as a consumer, customer, competitor, or a security holder of a party to the proceeding; or that the petitioner's participation is in the public interest. A final decision will be made on this application after a determination is made by the DOE that the proposed action will not impair the sufficiency of electric supply within the United States or will not impede or tend to impede the coordination in the public interest of facilities in accordance with section 202(e) of the Federal Power Act. Before an export authorization may be issued, the environmental impacts of the proposed DOE action (i.e., granting the export authorization, with any conditions and limitations, or denying it) must be evaluated pursuant to the National Environmental Policy Act of 1969. Copies of this application will be made available, upon request, for public inspection and copying at the address provided above. Issued in Washington, DC, on October 27, 1994. Anthony J. Como, Director, Office of Coal & Electricity, Office of Fuels Programs, Office of Fossil Energy. [FR Doc. 94-27191 Filed 11-1-94; 8:45 am] BILLING CODE 6450-01-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-27191. Public record. Not legal advice.