Possible Need to Update Market-Based Tariff Filings Triggered

November 21, 2008

If your company plans to participate in making ancillary services sales in the new Midwest Independent Transmission System Operator, Inc. (MISO) ancillary services market set to launch on January 6, 2009, and does not have MISO listed as an ancillary services sales market in its market-based rate tariff, a market-based rate update filing should be made with the Federal Energy Regulatory Commission prior to making these sales.  Pursuant to Order No. 697, each entity with market-based rate authority must include in its tariff the organized markets in which it plans to sell ancillary services.  Most tariffs of entities that make ancillary services sales historically have listed PJM Interconnection, L.L.C., New York Independent System Operator, Inc.,  ISO New England, Inc., and California Independent System Operator Corp., which have had ancillary services markets in effect for some time.  Now that MISO is launching its ancillary services market, entities wishing to participate in that market should list MISO as a market in which ancillary services sales will be made pursuant to the market-based rate tariff.  

If your company plans to participate in that market and has not yet filed an update to its market-based rate tariff to include MISO, you should consider doing so as soon as possible and asking for an effective date on or before the implementation of the MISO ancillary services market if you may be making sales at the market's inception, along with a request for expedited approval.   Please let your Bracewell attorney contact know if you have any questions or would like assistance with the filing to update your company's tariffs.