FERC approved as-filed an application and settlement among Sharyland Utilities, L.P. (“Sharyland”), AEP Texas, Inc. (“AEP Texas”), and Electric Transmission of Texas, LLC (“ETT”) (collectively, the “ERCOT-CFE Tie Operators”) that was filed to preserve ERCOT's current jurisdictional status quo vis-a-vis FERC in light of any potential changes and transmission projects in Mexico that potentially could allow power from California to enter Texas via Mexico.

In an application, AEP had asserted that, if the Commission were to grant a section 211 order as requested, the existing Texas DC Ties with Mexico would become facilities for transmission and wholesale sales of electric energy in interstate commerce "solely by reason of" a Commission order issued under section 211. Therefore, AEP argued, regardless of the realization of either the Nogales Project or any CFE interconnections, the continuing operation of the Texas DC Ties in compliance with the requested section 211 order would not cause the Tie Operators to become "public utilities" as section 201(e) defines that term.

In its order, FERC stated, "we find that the Commission has jurisdiction under sections 201(b)(2) and 211 of the FPA to issue an order requiring AEP Texas, ETT, and Sharyland to provide transmission to, from, and over the interconnections between ERCOT and CFE. Exercise of this jurisdiction, however, will not cause any ERCOT utility that is not already a public utility to become a public utility under Part II of the FPA."

"Additionally, we find that, under the specific circumstances present here, where there is not yet interstate commerce (except as a result of prior section 210 and 211 orders) and where the Ties are pre-existing and in operation, there is no need for a separate order under section 210 directing interconnection service, and the requested section 211 order is sufficient to ensure that the Tie Operators’ continued operation of the Ties will not cause ERCOT, AEP Texas, ETT, Sharyland, or any other ERCOT utility or other entity that is not already a public utility to become a 'public utility.'," ERCOT said

FERC further stated, "Compliance with this order and the Offer of Settlement shall not cause ERCOT, AEP Texas, ETT, Sharyland, or any other ERCOT utility or other entity that is not already a public utility to become a 'public utility' as that term is defined by section 201 of the FPA and subject to the jurisdiction of the Commission for any purpose other than for the purpose of carrying out the provisions of section 211 of the FPA."

See FERC's order here

Tags:
FERC   Texas   ERCOT  

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