Introduction

1. Introduction Market-Based Rate Filings Including Triennial Reviews And New Market-Based Rate Authorizations

2. Team Effort • OMTR • All Four Rate Divisions • Front Office Staff • Policy Division • Administrative Division • Reliability Division • OGC • OMOI • OSEC

3. FERC responsibility under the Federal Power Act: • To Ensure That Rates Charged By Public Utilities For Wholesale Power Are Just, Reasonable And Not Unduly Discriminatory Or Preferential

4. Key Orders • April 14 Order (SMA Rehearing Order) 107 FERC ¶ 61,018 • May 13 Order (Implementation Order) 107 FERC ¶ 61,168 • July 8 Order (April 14 Rehearing Order) 108 FERC ¶ 61,026

5. Two Step Approach • Step One: Submit Indicative Screens • Step Two: For Utilities That Fail • Delivered Price Test • Tailored Mitigation • Default Mitigation

6. What Happens If Applicant Passes Both Screens? • Rebuttable Presumption Applicant Does Not Have MP… • …But Interveners Can Present Evidence To Disprove (Including Historical Sales Data And Evidence That Competing Suppliers Can’t Access The Market) • If No Evidence To Rebut The Presumption, Then Applicant Obtains/Retains MBR

7. What Happens If Applicant Fails Either Screen • Rebuttable Presumption Applicant Has MP • …But Applicant Can Either Present Evidence To Disprove (Including Historical Sales Data And The Delivered Price Test) • …Applicant Can Propose Tailored Mitigation Or Adopt Default Rates • If Found To Have MP, It’s Denied MBR In All Geographic Markets Where It Has MP

8. Results on This Agenda • 11 Passes • 6 Fails • 2 Additional Information Needed