|
ENRON FILES COMPLAINT WITH FERC TO GAIN TRANSMISSION ACCESS ON PJM TO SERVE AMTRAK
FOR IMMEDIATE RELEASE: Tuesday, December 16, 1997
HOUSTON - Enron Capital & Trade Resources Corp. (ECT), a subsidiary of Enron Corp., announced today that it has filed a complaint with the Federal Energy Regulatory Commission (FERC) stating that the Pennsylvania, New Jersey and Maryland Interconnection (PJM) acted unlawfully when it denied ECT's power marketing affiliate, Enron Power Marketing, Inc., access to the PJM transmission network. By refusing ECT's application for transmission service, PJM is prohibiting ECT from delivering electricity to Amtrak for resale to four additional commuter railroads in the Northeast Corridor between Washington, D.C. and New York City.
ECT's complaint requests that FERC order PJM to grant ECT transmission access on PJM's system so that it can provide wholesale electricity to Amtrak under a contract that is estimated to reduce substantially Amtrak's annual power costs.
Amtrak has been under pressure in recent years to reduce its reliance on government appropriations. To help reduce its costs, in July 1996 Amtrak issued a request for proposals (RFP) to provide electricity service to the transmission network on the Northeast Corridor that is owned and operated by Amtrak. Based on its proposal, ECT was chosen in April 1997 as Amtrak's firm requirements supplier beginning as soon as transmission access is available and continuing through the end of 1999.
To fulfill its agreement to deliver power to Amtrak, it is essential that ECT receive access to the PJM transmission network. In October, ECT submitted an application to PJM for transmission service to Amtrak, but the application was denied.
"In this instance, PJM is inhibiting Enron's ability to conduct its wholesale business, so we feel it necessary to ask the FERC to step in and rectify the situation," said Kenneth D. Rice, chairman and CEO, ECT - North America. "We are hopeful that the Commission will agree that Enron has the right to supply power to Amtrak; and more importantly, that Amtrak, as a wholesale industry participant, has the right to benefit from substantial cost savings."
According to PJM, Amtrak does not have the right to purchase power competitively because it is not a wholesale purchaser of electricity. However, Amtrak and ECT argue that Amtrak is a wholesale electricity purchaser because it resells nearly half of the electric energy that it currently purchases for traction along the Northeast Corridor to four commuter railroads: the New Jersey Transit, the Southeastern Pennsylvania Transportation Authority, the Maryland Mass Transit Administration Service and the Delaware Department of Transportation.
ECT's complaint with FERC argues that under federal law, if a buyer of electricity owns and operates its own distribution system, buys power for its own use and for resale to others, and bills those other customers on the basis of their metered usage; and if the power a buyer purchases for itself cannot be separated from that which it purchases for resale, the complete purchase should be considered a wholesale purchase.
"This law fits Amtrak," said Amy Linden, vice president of planning, policy and development for Amtrak's Northeast Corridor. "We buy power today from various utilities within PJM's system. We use approximately half of the power we buy, and we resell, meter and bill for the remainder of the power to our commuter railroad customers along the Northeast Corridor."
Linden added that the only difference now is that Amtrak has an opportunity to purchase its wholesale power from ECT at significantly reduced cost to Amtrak and its commuter rail customers.
Enron Corp. is one of the world's largest integrated natural gas and electricity companies. Enron is traded under the ticker symbol, "ENE."
Amtrak is America's national passenger railroad, serving more than 65 million intercity and commuter customers a year in 44 states.
For additional information please contact:
Terrie James - Enron Corp.
713-853-7727
Rick Remington - Amtrak
215-349-2735
 |
