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FERC Approves $115,000 Settlement With Power Marketer

July 26, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Federal Energy Regulatory Commission has approved a Stipulation and Consent Agreement (Agreement) between its Office of Enforcement (Enforcement) and Entergy Nuclear Power Marketing, L.L.C. (ENPM) which resolves Enforcement’s investigation under Part 1b of the Commission’s regulations, 18 C.F.R. Part 1b (2018), into whether ENPM violated 18 C.F.R. §§ 35.41(a) and (b) and ISO New England Inc.’s (ISO-NE) Tariff, Market Rule 1 § III.13.6.1.1.1 ("Energy Market Offer Requirements") and § III.1.10.1A(d) ("Day Ahead Energy Market Scheduling") when ENPM: 1) failed to timely act in response to a natural gas pipeline notice restricting interruptible fuel transportation service, leading ENPM to have insufficient fuel to meet dispatch instructions at one gas-fired power plant, and 2) failed to timely update its open supply offer or otherwise notify ISO-NE of its potential inability to meet dispatch instructions after the notice was issued.

Under the settlement, ENPM does not admit violations of 18 C.F.R. §§ 35.41(a) and (b) and ISO-NE’s Tariff, Market Rule 1 § III.13.6.1.1.1 ("Energy Market Offer Requirements") and § III.1.10.1A(d) ("Day Ahead Energy Market Scheduling").

Under the settlement, ENPM agrees to pay a civil penalty of $115,000 and to pay disgorgement of $47,084, plus interest.

In its order, FERC stated, "Acting as the ISO-NE lead market participant for the RISE [Rhode Island State Energy Center] facility, ENPM offered RISE as a capacity resource in ISO-NE’s Winter 2013-2014 capacity auction and was selected as a 575 MW capacity resource by ISO-NE. As a capacity resource, ENPM received monthly capacity payments, including $1,459,610 from ISO-NE for December 2013. In exchange, RISE was required to each day offer the full 575 MW it had bid into the ISO-NE capacity auction in ISO-NE’s Day-Ahead market and to provide the associated electricity offered if RISE was dispatched."

In its order, FERC stated, "On the morning of December 26, 2013, ENPM submitted an offer for RISE in ISO-NE’s Day-Ahead market to provide electricity on December 27, 2013. Enforcement determined in its investigation that ENPM directed its fuel management agent to rely on fuel drawn from ENPM’s Operational Balancing Account (OBA) maintained with the pipeline interconnected with RISE, and failed to amend or alter its plan following the publication of a notice from said pipeline limiting the use of the OBA. As a result, ENPM failed to secure fuel sufficient to meet its dispatch obligation."

In its order, FERC stated, "Enforcement’s investigation further determined that despite becoming aware of RISE’s likely inability to operate at approximately 9:30 PM on December 26, 2013, ENPM waited until 5:31 AM on December 27, 2013 to contact ISO-NE about the issue."

In its order, FERC stated, "Enforcement determined that ENPM’s violations were the result of a failure to exercise sufficient diligence to ensure that RISE was able to meet its dispatch obligations. Other factors considered in reaching the proposed penalty included: the lack of any intent to commit the violations; steps ENPM has taken to ensure that repeat violations will not occur; the absence of significant market harm caused by the violations; ENPM’s full cooperation with the investigation; and ENPM’s resolution of this investigation without a hearing."

Docket No. IN18-5

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