FERC's 79th Annual Report on license and certificate applications, rate filings and other matters submitted by regulated companies and industry-wide rules for 1999.

FEDERAL ENERGY REGULATORY COMMISSION 1 9 9 9 A N N U A L R E P O RT Cover photo courtesy of Idaho Power Company TABLE OF CONTENTS Members of the Federal Energy Regulatory Commission 2 Letter from the Chairman 3 Overview 4 Energy Markets 10 Energy Projects 19 Hydroelectric Power Table 30 MEMBERS OF THE FEDERAL ENERGY REGULATORY COMMISSION Vicky A. Bailey William L. Massey James J. Hoecker Linda K. Breathitt Curt L. Hebert, Jr. Commissioner Commissioner Chairman Commissioner Commissioner 2 LETTER FROM THE CHAIRMAN To the Senate and House of Representatives: I am pleased to submit to the Congress the Federal Energy Regulatory Commissions annual report, covering the fiscal year from October 1, 1998, through September 30, 1999. This is the 79th report issued by the Commission and its predecessor, the Federal Power Commission. As an independent agency, the Commission oversees key operating functions of the natural gas, electric utility, hydroelectric power, and oil pipeline transportation industries. This Annual Report is unique. The agency now operates at the crossroads of a new energy economy. As this report indicates, Fiscal Year 1999 was a period in which the Commission was preparing to change its organization, regulatory approaches, and management culture to permit it to be more responsive to fundamental changes in all regulated industries. For the first time, the annual report is organized according to the agencys two key regulatory processes, around which its staff has been reconfigured: developing and maintaining competitive energy markets and authorizing and overseeing energy projects in the public interest. The Commissions strategic direction is to maintain strong environmental and safety regulation and economic regulation that will be sufficiently strong until the competitive market can evolve to assume much of that responsibility. For fiscal year 1999, Congress appropriated $167.5 million to support Commission activities. Under the authority of the Omnibus Budget Reconciliation Act of 1986 and other laws, the Commission recovers all of its costs from regulated industries through fees and annual charges. Revenues generated from these sources completely offset congressional appropriations and therefore result in a net cost to the treasury of zero dollars. As a result, the users and beneficiaries of the Commissions servicesnot the general taxpayerspay its operating costs. The Commission remains dedicated to protecting the economic welfare of American consumers of energy and to ensuring a healthy, competitive, and efficient energy industry. Respectfully, James J. Hoecker Chairman 3 OVERVIEW The Federal Energy Regulatory Commission (FERC) administers Natural Gas and Electric Markets numerous laws and regulations involving key energy issues. These ...