FERC Order 2004 Compliance

Introduction

On Dec. 11, 2003, the Federal Energy Regulatory Commission issued Order No. 2004, with subsequent clarifying orders issued on April 16, 2004, and on Aug. 2, 2004. Together these orders establish new standards of conduct for interstate natural gas pipelines and for electric utility companies that own or operate facilities used for the transmission of electricity in interstate commerce. Because Aquila owns and operates facilities for the transmission of electricity in interstate commerce, it is a "Transmission Provider" subject to the Order 2004 standards.

The standards require that Aquila post certain information on its Internet Web site or OASIS sites. That information is posted below, with references to the applicable sections of the standards noted in parentheses. Links to this page are provided on each of Aquila's appropriate OASIS sites.

Additionally, other information also may be posted on or linked from this or other pages herein in compliance with posting requirements by regional or national transmission or reliability organizations/entities.

Marketing and Energy Affiliates (Section 358.4(b)(1))

At the parent-company level, Aquila, Inc. has two business units that are treated as Energy Affiliates:

  • Power Supply & Energy Resources, 20 West Ninth Street, Kansas City, Mo. 64105
  • Gas Supply Services, 1815 Capitol Avenue, Omaha, Neb. 68102

Aquila Merchant Services, Inc. is identified as an energy affiliate because of its ongoing legacy gas operations. Its corporate address is 20 West Ninth Street, Kansas City, Mo. 64105.

Formerly, Aquila also had the following Energy Affiliates:

  • Aquila Long Term, Inc. (FERC market-based rate authority terminated effective June 11, 2007)
  • Aquila Merchant Services, Inc. (FERC market-based rate authority terminated effective July 4, 2007)
  • MEP Clarksdale Power, LLC (FERC market-based rate authority terminated June 26, 2007)

Shared Facilities (Section 358.4(b)(2))

Facilities shared by Aquila and its Marketing and Energy Affiliates:

  • 20 West Ninth Street, Kansas City, MO 64105 (office building)
  • 1815 Capitol Avenue, Omaha, NE 68102 (office building)
  • 613 Atchison, St. Joseph, MO 64501 (office building)

Aquila has established a security control system that prevents access by employees of the Marketing or Energy Affiliates to Aquila's transmission control center or similar facilities used for transmission operations or reliability functions. In addition, Aquila's computer systems for the transmission system control center are designed with unique passwords that prevent unauthorized access.

Corporate Structure (Section 358.4(b)(3)(i))

Corporate structure diagram PDF Document showing the relative position of the Transmission Provider (Aquila, Inc.) and its Marketing and Energy Affiliates.

Explanation of Corporate Structure

Aquila owns and operates electric and gas utilities in five states. Those utilities are operated by separate business units within a single parent company (i.e., Aquila, Inc.). While those divisions exist independently for many regulatory purposes (such as for state rate-making), they are not separate legal entities. Many other companies with utility operations in more than one state often conduct those operations in separate subsidiaries under a holding company.

All of Aquila's utility divisions are conducted under the "Aquila Networks" trade name. None of Aquila's gas utility divisions owns or operates interstate natural gas pipelines. Both of Aquila's electric utility divisions (in Colorado and Missouri) own and operate facilities for the transmission of electricity in interstate commerce. It is the ownership and operation of those electricity transmission facilities that make Aquila a "Transmission Provider" subject to the Order 2004 standards of conduct. Accordingly, the electric utility divisions are identified in our corporate structure diagram PDF Document.

Aquila also conducts non-utility operations, both in business units, within the parent company and in separate subsidiaries. Business units and subsidiaries that conduct operations causing them to fall within the definition of an Energy or Marketing Affiliate under the Order 2004 standards of conduct are identified in our corporate structure diagram PDF Document.

Organizational Chart (Section 358.4(b)(3)(ii))

Board of Directors

Organizational Chart detailing certain employee titles, duties, whether the employee is involved in transmission or sales and the name of supervisory employees who manage non-clerical employees involved in transmission or sales.

OrgPublisher 5 PluginX is required to actively view and search this organizational chart. Go to www.aquire.com/downloads/plugins/ for this free plugin.

Dual Function Employee Information (Section 358.4(b)(3)(iii))

Aquila has no employees serving the dual function roles as described in the FERC Orders.

Potential Merger Partners (Section 358.4(b)(3)(v))

On Feb. 7, 2007, Aquila, Great Plains Energy Inc. and Black Hills Corp. announced two transactions that contemplate acquisition of Aquila utility operations. Great Plains Energy Incorporated, the holding company of Kansas City Power & Light Company, plans to acquire Aquila's Missouri electric utility operations (MPS and L&P). Additionally, Black Hills Corporation, parent company of Black Hills Power, plans to acquire Aquila's Colorado electric utility operations (WPC) and Aquila's Colorado, Iowa, Kansas and Nebraska natural gas utilities.

Great Plains and KCP&L are headquartered at 1201 Walnut, Kansas City, MO 64106. View a list of KCP&L's Energy Affiliates and addresses as posted on KCP&L's Web site. In addition to Aquila's Missouri electric utility operations, Great Plains plans to acquire Aquila's Energy Resources and Power Supply business unit (an Energy Affiliate business unit) and Aquila Merchant Services, Inc. (and its subsidiaries), which is Aquila's non-regulated, merchant subsidiary.

Black Hills Corporation's mailing address is 625 Ninth Street, Rapid City, SD 57701. The address for Black Hills Power is 409 Deadwood Avenue, Rapid City, SD 57702. Black Hills Power was granted a waiver from FERC for the Standards of Conduct (Docket No. TS04-247).

The transmission facilities covered under the Black Hills Power OATT are comprised of facilities owned by Black Hills Power, Basin Electric and Powder River Energy Corporation. Black Hills provided Aquila a list of entities that would be considered Energy Affiliates if Black Hills had not been granted a waiver from FERC.

View the Black Hills list of entities PDF Document

Transfers of Employees (Section 358.4(c))

Transfers of employees during the last 90 days between Aquila and its Marketing and Energy Affiliates.

Compliance Procedures (Section 358.4(e))

Aquila's Compliance Procedures PDF Document implementing the standards of conduct established by the FERC Orders.

Voluntary Consent (Section 358.5(b)(4))

At this time Aquila does not have have any non-affiliated customers that have voluntarily provided written consent to share their customer information with Aquila's Marketing or Energy Affiliates.

OASIS Sites and Postings

OASIS Sites

Each of Aquila's three electric utility divisions has an OASIS site, as follows:

OASIS Resource links:

OASIS Postings

Detailed information about the items listed below are posted on the OASIS site of each of Aquila's utility divisions.

  • Deviations Due to Emergency Circumstances (Section 358.4(a)(2))
    Incidents of Disclosure - Self Reported Violations (Section 358.5(b)(3))
  • Discretionary Actions (Section 358.5(c)(4))
  • Discounts (Section 358.5(d))

Tariffs

View the wholesale electric tariffs for Aquila Networks.

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