FERC Gives Guidance To Foreign Affiliates. The Federal Energy Regulatory Commission on Jan. 15 denied a petition by British Columbia Power Exchange Corp. (Powerex), the power marketing affiliate of British Columbia Hydro and Canada-utility Power Authority (BC Hydro) to sell power at market-based rates.
The order marked the first time the FERC showed how it will apply Order 888's open-access requirements to foreign utility affiliates (Docket No. ER97-556-000).
"I look forward to Powerex taking another run at this issue," says Commissioner James Hoecker. He pointed out that comparability of transmission service is needed because Canada is largely regulated by provinces, and the advent of competition there will affect rates by region in the U.S.
The FERC did not allow Powerex to use market-based rates because it had not demonstrated that transmission market power had been adequately mitigated. FERC was not convinced that BC Hydro's tariffs satisfied its nondiscriminatory transmission access requirements.