FERC audits fault practices of APS and TEP

FERC: Press Release" As a result of its unauthorized use of point-to-point transmission service, the Commission directed APS to pay $4 million, $1.25 million of which will be made to low income energy assistance programs in Arizona. The remaining $2.75 million will be used to upgrade the utility’s West Phoenix-Lincoln Street 230-kV transmission system with high-capacity composite conductors to better serve customers. The Commission cautioned APS that it may not recover any of these monies through its rates. APS has 90 days to file a plan addressing the operational faults cited by the Commission, and must file quarterly progress reports until all corrective actions are completed. In a second audit order issued today, the Commission faulted Tucson Electric Power Company (TEP), when acting as a wholesale power merchant, for obtaining point-to-point transmission service that was not posted on TEP’s system and made available to other wholesale merchants. Among other violations, the Commission audit also found that TEP allowed control area personnel to interact with employees engaged in wholesale merchant functions – a violation of the Standards of Conduct rules."