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Federal Energy Regulatory Commission

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Commissioner Tony Clark Statement
April 5, 2013
Docket No. ER13-878-000

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Southwest Power Pool

“I concur in this decision reluctantly given its rather unappealing result.

“The route the Commission finds itself travelling was effectively chosen in its previous decision that a Qualifying Facility (QF) under PURPA not be subject to certain charges or credits in relation to the Southwest Power Pool’s (SPP) Energy Imbalance Service market. In the wake of that severance between cost-causer and cost-payer, SPP is left to decide which unlucky entity now gets left holding the bag. SPP, through its stakeholder process, has chosen to stick the bill with the utility that is required to purchase the power from the QF. That seems unfair on its face and is only just and reasonable under the unfortunate circumstances in which SPP finds itself today. This is a case of a utility and its consumers being in the wrong place at the wrong time when a QF seeks to interconnect on the exceedingly favorable terms that have been granted to it by PURPA and this Commission’s implementation of that statute.

“Another possibility might have been to simply uplift all charges and credits to the market, but that proposal is not before us, and frankly, it is hard to come to terms with any appropriate methodology at this point.

“If there is any silver lining in this matter, it may be that SPP’s implementation of a fully functioning day-ahead and real-time energy market may someday help resolve the matter more equitably on a going forward basis.

“For these reasons, I respectfully concur with this order.”