Posted on 01/12/2002 9:35:48 AM PST by vmatt
[Federal Register: May 15, 2001 (Volume 66, Number 94)] [Notices] [Page 26849] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr15my01-64]
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
[Docket No. ER01-1394-000, et al.]
Enron Energy Services, Inc., et al.; Notice of issuance of Order
May 9, 2001.
Enron Energy Services, Inc., et al. (Enron Energy) submitted for filing a rate schedule under which Enron Energy will engage in wholesale electric power and energy transactions at market-based rates. Enron Energy also requested waiver of various Commission regulations. In particular, Enron Energy requested that the Commission grant blanket approval under 18 CFR Part 34 of all future issuances of securities and assumptions of liability by Enron Energy.
On April 27, 2001, pursuant to delegated authority, the Director, Division of Corporate Applications, Office of Markets, Tariffs and Rates, granted requests for blanket approval under Part 34, subject to the following:
Within thirty days of the date of the order, any person desiring to be heard or to protest the blanket approval of issuances of securities or assumptions of liability by Enron Energy should file a motion to intervene or protest with the Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, in accordance with Rules 211 and 214 of the Commission's Rules of Practice and Procedure (18 CFR 385.211 and 385.214).
Absent a request to be heard in opposition within this period, Enron Energy is authorized to issue securities and assume obligations or liabilities as a guarantor, indorser, surety, or otherwise in respect of any security of another person; provided that such issuance or assumption is for some lawful object within the corporate purposes of the applicant, and compatible with the public interest, and is reasonably necessary or appropriate for such purposes.
The Commission reserves the right to require a further showing that neither public nor private interests will be adversely affected by continued approval of Enron Energy's issuances of securities or assumptions of liability.
Notice is hereby given that the deadline for filing motions to intervene or protests, as set forth above, is May 29, 2001. Copies of the full text of the Order are available from the Commission's Public Reference Branch, 888 First Street, NE., Washington, DC 20426. The Order may also be viewed on the Internet at http://www.ferc.fed.us/online/rims.htm (call 202-208-2222 for assistance). Comments, protests, and interventions may be filed electronically via the internet in lieu of paper. See, 18 CFR 385.200(a)(1)(iii) and the instructions on the Commission's web site at http://www.ferc.fed.us/efi/doorbell.htm.
David P. Boergers, Secretary. [FR Doc. 01-12146 Filed 5-14-01; 8:45 am] BILLING CODE 6717-01-M
What is FERC?
The Federal Energy Regulatory Commission is an independent regulatory agency within the Department of Energy that Regulates the transmission and sale of natural gas for resale in interstate commerce; Regulates the transmission of oil by pipeline in interstate commerce; Regulates the transmission and wholesale sales of electricity in interstate commerce; Licenses and inspects private, municipal and state hydroelectric projects; Oversees environmental matters related to natural gas, oil, electricity and hydroelectric projects; Administers accounting and financial reporting regulations and conduct of jurisdictional companies, and; Approves site choices as well as abandonment of interstate pipeline facilities.
The Commission recovers all of its costs from regulated industries through fees and annual charges.
History of FERC
FERC was created through the Department of Energy Organization Act on October 1, 1977. At that time, the Commission's predecessor, the Federal Power Commission (FPC), was abolished, and the new agency (FERC) inherited most of the FPC's responsibilities.
The Commission's legal authority comes from the Federal Power Act of 1935, the Natural Gas Act (NGA) of 1938, the Natural Gas Policy Act (NGPA) of 1978, the Public Utility Regulatory Policies Act of 1978, and the Energy Policy Act of 1992. Read more about Enabling Legislation.
How the Commission is Appointed The Commission is composed of five members who are appointed by the President of the United States, with the advice and consent of the Senate. Commissioners serve five-year terms, and have an equal vote on regulatory matters. No more than three members may belong to the same political party. One member is designated by the President to serve as Chair, and FERC's administrative head.
The Commission's current membership consists of Pat Wood III (Chairman), William L. Massey, Linda Key Breathitt, and Nora Mead Brownell.
IN OTHER WORDS, THIS IS AN INDEPENDENT AGENCY, NOT ONE WHOSE ACTIONS COULD BE LINKED TO THE PRESIDENT.
Nice try, but this is nonsense. The FERC is an independent regulatory commission.
Like independent agencies, independent regulatory commissions exist outside the department structures. The original intention for the regulatory commission was to essentially set up a panel of experts that can be somewhat removed from the political process. These commissions tend to focus on particular commercial and economic issues. Through maintain long term issue interaction and issue leader contacts, these commissions become policy leaders for the national government. Older commissions are far more independent of the whims of the sitting President than new commissions.
The whole idea of an independent regulatory commission is that the President has no influence except through the appointments process. And it's been shown here that no Bush appointees were serving when this decision was made.
On April 27, 2001, pursuant to delegated authority, the Director, Division of Corporate Applications, Office of Markets, Tariffs and Rates, granted requests for blanket approval under Part 34, subject to the following:
In the end, I don't think Bush will take heat for FERC's actions, but this is a story that should definitely be made known. Who is on the FERC anyway, and appointed by whom? How long are their terms?
Or maybe I'd better go look it all up.
From their website: "The Commission oversees the issuance of certain stock and debt securities, assumption of obligations and liabilities, and mergers."
1) Does that mean that every member of the commission is a qualified financial analyst.
2) What would the source of their financial information be?
and
3) How would this differ from the information provided to Wall Street analysts whose sole purpose is to make recommendations on particular securities?
I disagree, please see link above.
But the question is whether the FERC had good info. The whole problem with ENRON was this fishy accounting stuff. Would it have been clear from the finance reports that ENROn was in trouble?
That's what the regulations governing the reporting of facts are designed for. FERC needs to hire Andersen LLP to do an audit for them.
Funny how you and this reporter casually twisted that around.
If Gray was running the nation's energy policy, as you would evidently reason, you should ask your congressman to investigate IMHO."
We Californians were getting screwed in this energy deal. Gray has designs on the presidency, and the path there does not include screwing your constituency, especially when you're the biggest electoral block in the country. Gray didn't like Hebert because he opposed price caps...The fact that Wood would be in place would have been no comfort, as Wood headed up the energy deregulation in Texas. Deregulation was Gray's enemy, and another pro-deregulation chair wasn't going to be any friendlier to California's plight than Hebert.
Also, keep in mind the time-line. The interview is 5/17. The price caps do go into place, under Hebert, on 5/29...Gray's complaints about Hebert were prior to the interview and prior to the institution of the caps.
Was Hebert somehow "threatened" by Gray, thinking he would lose his job if he didn't institute price caps? If so, Hebert was dead wrong, because he lost his job anyway, as the Vice-President confirmed he would back before May 17. Is the Vice-President beholden to Gray too?
Barbara
Now President Bush did name Mr. Hebert [a republican] as Chairman in Jan. 2001, but Mr Hebert was appointed by President Clinton in 1997............"
You just answered your own question. Bush appointed him chair. True, he was already on the commission. But, Bush didn't need to pull from the commission to appoint the chair, he chose too, and according to the energy press Hebert was his second choice all along (Wood was his first).
There's a pre-election analysis at:
http://www.platts.com/election/electric.shtml
Bush pretty much just followed his script. It's either Hebert or Wood. Hebert's the easier choice, because he's already on the Commission, but when Hebert wouldn't bow to Lay, he was gone, and Wood was right there.
Barbara
Oh.. Oh, my..
We have Daschle's partisan obstructionism as a key element in this "scandal"
(LOL!)
"Three months later, Hebert "resigned," and Pat Wood replaced him. So, I guess we do know who was running FERC then...Ken Lay. "
If, after review, you don't see the illogic of your conclusion, then I understand why you don't "get" the humor in my reply.
Mr. Lay also secured important victories in the regulatory arena, helping to shape the Federal Energy Regulatory Commission in the past year.
When Mr. Bush came to office, he had two FERC slots to fill. Mr. Lay set out to ensure that both were apostles of Enron's deregulation philosophy. Former Texas utility regulator Pat Wood, Mr. Bush's personal pick and a longtime friend of Mr. Lay's as well, was almost guaranteed one of the positions; the question was whether he would take over as chairman. A power struggle ensued between the White House and acting Chairman Curtis Hebert, who had his own powerful Republican allies in Congress. In the end, Mr. Bush elevated Mr. Wood to the chairmanship, after Mr. Hebert quietly resigned in August.
Mr. Lay, meanwhile, pushed hard behind the scenes to promote Nora Mead Brownell, a Pennsylvania utility regulator who favors deregulation. When her candidacy was opposed by Pennsylvania officials, Mr. Lay said, he phoned Mr. Rove, the president's political adviser, to tell him of her important role in pushing deregulation in Pennsylvania. Ms. Brownell won the second seat.
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