Tough Plan to Rein in Independent Generators Up for CPUC Vote

The California Public Utilities Commission is poised to vote on a framework to enforce long-stalled rules on plant operation and maintenance that generators have characterized as an egregious intrusion on their private facilities but that are mandated by state law. The draft ?general order? would also enforce the outage coordination protocol adopted by the California Independent System Operator (CAISO). The standards include sanctions for violations. ?We?ve maintained that the CPUC does not have jurisdiction? over exempt wholesale generators since early 2003, said Brian Cragg, attorney representing West Coast Power. The ?CPUC is picking an unnecessary jurisdiction fight,? added Cragg. The Federal Energy Regulatory Commission has authority over independent generators and requires them to comply with CAISO regulations. West Coast Power has proposed that the standards could be incorporated into CAISO tariffs. While many rules await adoption after seemingly endless debate over jurisdiction and other thorny matters, an interagency committee in February 2003 adopted requirements that call for each plant to keep logs on daily operations. A separate draft plan up for vote next week would set requirements to enforce these standards for facilities 50 MW and above. West Coast Power and other generator representatives argue that logbook requirements could distract plant employees from more important tasks of making sure facilities stay on course. ?The focus in the control room is on keeping the plant running and not mastering Windows XP,? said Cragg. Plant operators will either need to do more record keeping, which will take them away from other tasks, or hire new people to keep records. ?The legislature expressly identified the exact plant categories and types that are excluded [from FERC jurisdiction] and did not name exempt wholesale generators,? asserts commissioner Carl Wood in his draft decision. ?Moreover, the legislature expressly extended the commission?s authority into an area germane to the regulation of utilities by providing additional authority and jurisdiction vested in the commission to implement and enforce operations and maintenance standards,? he added. The draft plan was mandated in early 2002 by legislation that aimed to eliminate the potential for market manipulation. Independent generators have fought these changes tooth and nail, maintaining that they are not under the CPUC?s jurisdiction and that many proposed standards are duplicative of CAISO rules. Those excluded from the rules are nuclear plants, qualifying facilities, municipal projects, and those used to provide water, said Wood.

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Tough Plan to Rein in Independent Generators Up for CPUC Vote

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