FERC denies marketer's request to extend transmission service

WASHINGTON, D.C. - The U.S. Federal Energy Regulatory Commission has rejected a power marketer's bid for a one-year rollover of firm transmission agreements expiring December 31.

Although the order effectively agreed with Cargill Power Markets' argument that three transmission providers could not use rollover provisions in FERC Order 890 to deny the service, it found the applicable rate schedule contains no rollover rights.

Under the order, a service agreement must have a minimum five-year term to be eligible for rollover rights, but CPM's complaint against Central Maine Power, NStar Electric and United Illuminating said the service agreements, which have one-year terms, pre-dated that requirement.

While the deals may have pre-dated that requirement, the applicable service schedule did not include any rollover rights, said the order issued December 5. CPM "provided no evidence" to support its assertion that rollover language "was inadvertently omitted," FERC said.