NEW England Power, a subsidiary of New England Electric System, promoted Lawrence E. Bailey to president. Previously, Bailey served as vice president and director of generation operations....
could sell economy energy at market prices to FP&L customers, even though the munis and co-ops bought "partial requirements" service from FP&L, priced at FP&L's average cost of generation and transmission.
For example, assume that FP&L generates energy at a given hour at 12 mills per Kwh (incremental cost), but sells to partial requirements customers at 6 mills (average cost). Those customers can then offer the
6-mill power through a broker on FP&L's economy energy bulletin board to an FP&L customer with a 10-mill avoided cost, causing FP&L to incur a 12-mill cost to avoid a 10-mill resource.
The FERC saw no problem and weighed in against any market restriction.
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