Microsoft Word - DEMI DOE Export Permit App 11.2020

November 13, 2020

United States Department of Energy

Office of Electricity

1000 Independence Avenue, SW

Washington, DC 20585

Attention: Mr. Christopher Lawrence

RE: Direct Energy Marketing Inc.

Docket No. EA280-__

Application for Renewal of Authorization to Transmit Electric Energy to

Canada

Dear Mr. Lawrence:

Enclosed is a copy of a renewal application for export authorization submitted by Direct

Energy Marketing Inc. (DEMI). Pursuant to the Department of Energy’s (DOE) Special

COVID-19 Filing Procedures,

DEMI has: 1) scanned the application and emailed it to you at

[email protected], and 2) remitted the $500 filing fee by check in accordance

with DOE’s payment instructions.

If you should have any questions about this application, please do not hesitate to contact

us.

Respectfully Submitted,

/s/ John Schultz

John Schultz

Co-President

Direct Energy Marketing Inc.

Enclosures

See DOE, Export Authorizations – Procedures, https://www.energy.gov/oe/services/electricity-

policy-coordination-and-implementation/international-electricity-regulatio-5.

See

https://www.energy.gov/sites/prod/files/2020/09/f78/2020%20Dept%20of%20Energy%20Payment%20In

structions%20.pdf.

UNITED STATES OF AMERICA

DEPARTMENT OF ENERGY

OFFICE OF ELECTRICITY

Direct Energy Marketing Inc. ) Docket No. EA280-__

APPLICATION OF DIRECT ENERGY MARKETING INC. FOR RENEWAL OF

AUTHORIZATION TO TRANSMIT ELECTRIC ENERGY TO CANADA

Direct Energy Marketing Inc. (DEMI or Applicant), pursuant to Section 202(e) ofthe Federal

Power Act, 16 U.S.C. § 824a(e), and the Department ofEnergy (DOE) regulations contained in

10 C.F.R. § 205.300, et seq., herebyfiles its application to renew its blanket authority to transmit electric

energy from the United States to Canada over all facilities at the United States borderwith Canada that

are appropriate for third-party use, for a term ofan additional ten years effective January 27, 2021, the

day after the expiration of DEMI’s current authorization.

I. DESCRIPTION OF APPLICANT AND BACKGROUND

The exact legal name of the Applicant is Direct Energy Marketing Inc. DEMI is a Delaware

corporation having its principal place of business at 12 Greenway Plaza, Suite 200, Houston, TX

77025.

DEMI is wholly owned by Centrica US Holdings Inc., an indirect, wholly-owned subsidiaryof

Centrica plc (Centrica). Centrica is a publicly traded company and major supplier of energy and

services in the United Kingdom. Centrica, through its affiliates, serves over 12 million natural gas

and power customers in the United Kingdom. DEMI does not own or control any electric

generation facilities in any wholesale market in interstate commerce.

Neither DEMI nor any of

its affiliates owns or control transmission facilities or has an electric franchised service territory

or captive wholesale or retail customers. Affiliates of DEMI provide retail energy services on a

DEMI’s affiliate, Direct Energy Business Marketing, LLC is a party to a tolling agreement that

entitles it to 256 MW of nameplate capacity from the Bayonne Energy Center generating facility. Beyond

this limited tolling agreement, none of DEMI’s affiliates own or control any electric generation facilities

in any wholesale market in interstate commerce.

competitive basis in the United States and Canada. DEMI is authorized by the Federal Energy

Regulatory Commission to sell electricity at wholesale at market-based rates.

On November 5, 2003, the DOE issued Order No. EA-280 authorizing DEMI to transmit

energy from the United States to Canada for a two-year term as a power marketer. The DOE

renewed DEMI’s export authorization in Order No. EA-280-A on March 17, 2006. In Order No.

EA-280-B, issued on January 26, 2011 the DOE authorized DEMI to export electric energy to

Canada for a period of ten years. Through this Application, DEMI seeks to renew its authorization to

export power to Canada for a term of ten years commencing January 27, 2021, the day after the

expiration of DEMI’s current authorization.

II. COMMUNICATIONS

Communications concerning this filing should be sent to:

Ryan Harwell

Licensing & Reporting Manager, Regulatory

Affairs

Direct Energy

12 Greenway Plaza, Suite 250

Houston, TX 77046

Phone: 713-877-5701

ail:

[email protected]

Deonne Cunningham

Lead Counsel, Direct Energy Business

Wholesale

Direct Energy

12 Greenway Plaza, Suite 250

Houston, TX 77046

Phone: 832-370-5063

Email:

Deonne.Cunningham@directenergy.com

Bray Dohrwardt

Associate General Counsel, North American

Business

Direct Energy

12 Greenway Plaza, Suite 250

Houston, TX 77046

Phone: 713-877-3851

Email:

Bray[email protected]

III. JURISDICTION

Direct Energy Marketing Inc., Docket No. ER03-1088-000 (Aug. 13, 2003) (unpublished

letter order granting DEMI Market-Based Rate authority).

Pursuant to section 202(e) of the Federal Power Act, the DOE has jurisdiction over the

action to be taken in this application. No other known federal, state or local government has

jurisdiction over the action to be taken in this application. FERC has jurisdiction over DEMI’s

wholesale electric power activities in the United States.

IV. DESCRIPTION OF TRANSMISSION FACILITIES

DEMI intends to export electric energy over transmission interconnections between

Canada and the United States. DEMI requests authority to export electricity to Canada over any

international transmission facility authorized by Presidential Permit that is appropriate for open

access transmission by third parties. A list of these facilities is provided in Exhibit C.

V. RENEWAL AUTHORIZATION AND TECHNICAL DISCUSSION

By this Application, DEMI seeks authorization to continue to transmit electric energy to

Canada as a power marketer for a term of ten years. DEMI respectfully requests that this ten-

year term commence on January 27, 2021, the day after the expiration of its current blanket

authorization under Order No. EA-280-B.

Because DEMI does not own or control electric generation or transmission facilities in any

wholesale market in interstate commerce,

neither DEMI nor its affiliates have a power supply

system of their own on which DEMI’s exports of power could have a reliability, fuel use or system

stabilityimpact. DEMI will purchase the power to be exported from electric utilities and federal

power marketing agencies pursuant to voluntary agreements. By definition, such power is surplus to

the system of the generator and, thus, the electric power that DEMI will export on either a firm or

interruptible basis will not impair the sufficiency of the electric power supply within the United

Further, DEMI’s affiliates do not own or control electric generation aside from the tolling

agreement with Direct Energy Business Marketing, LLC.

States. Moreover, DEMI’s exports of electric energy to Canada will not impede or tend to impede

the regional coordination of electric utility planning or operations.

DEMI will makeall necessarycommercial arrangements and will obtain any and all other

regulatory approvals required in order to affect anypower exports. All the electricity exported by

DEMI will be transmitted pursuant to arrangements with utilities that own and operate existing

transmission facilities and will beconsistent with the export limitations and otherterms and conditions

contained in the existing Presidential Permits and electricityexport authorizations associated with those

facilities. DEMI willcomplywith the terms and conditions contained in the authorizations issued for

these cross-border facilities as well as any other export limitations that DOE may deem appropriate,

consistent with DOE’s orders authorizing exports of electric energy bypower marketers.

DEMI will scheduleeachtransaction withthe appropriate control area incompliance with the

reliabilitycriteria, standards, andguidelines of the North AmericanElectric ReliabilityCorporation

(NERC) and its member regional organizations,or anyElectricReliabilityOrganization in existence

at the time of export. DEMI will obtain all necessary transmission access over the existing

facilities listed in Exhibit C for its exports and will comply with all applicable statutes and

implementing rules, regulations, and orders of DOE and FERC. The controls inherent in any

transaction that complies with NERC requirements and DOE export limits on the transmission

facilities listed in Exhibit C are sufficient to ensure that exports by DEMI will not impede the

coordinated use of transmission facilities within the meaning of section 202(e) of the Federal

Power Act.

As noted in Order No. EA-102, DOE may utilize the reliability analyses performed in

other export authorization proceedings for the transmission facilities listed in Exhibit C in order

to make the findings required for the renewal of export authority to DEMI. Additionally, with

the exception of facilities related to the New York Power Authority (“NYPA”) and Bonneville

Power Authority (“BPA”), which are not subject to DOE’s jurisdiction under Section 202(e) of

the Federal Power Act, traditional technical studies have been performed, submitted and

reviewed by DOE in connection with the export authorizations issued to the facilities over

which DEMI will export energy. As for NYPA and BPA, DOE has previously relied on reports

and other information provided by those border facilities. Consistent with its previous decisions

regarding applications for export authorization, including orders specific to DEMI (Order EA-

280, Order EA-280-A and Order EA-280-B), DOE should in this instance again rely on those

studies, reports and other information and determine that the United States system will not be

impaired by exports over such border systems.

Because the proposed exports will take place over existing international transmission

lines, DEMI submits that the requested authorization does not require the preparation of an

environmental impact statement or an environmental assessment pursuant to the National

Environmental Policy Act of 1969.

VI. PROCEDURES

This application is consistent with the North American Free Trade Agreement and U.S.

energy policy and will foster development of a more efficient and competitive North American

energy market. DEMI requests authorityfor export transactions through specified border facilities

even though specific transactions may not yet have been negotiated. DOE has granted export

authority to similarly situated power marketers, and DEMI agrees to abide by the general conditions

set forth in DOE’s prior orders authorizing power marketers to export power.

VII. EXHIBITS AND ATTACHMENTS

Per 10 C.F.R. § 205.302 (h), the signed Verification of John Schultz is attached to this

Application as Attachment 1. Additionally, in accordance with 10 C.F. R. § 205.303, the

following Exhibits are attached hereto and made part hereof:

Exhibit A Agreements - Not Applicable

Exhibit B Legal Opinion of Counsel - Attached

Exhibit C Transmission Facilities (Submitted in lieu of Maps) - Attached

Exhibit D Non-U.S. Applicant’s Power of Attorney - Not Applicable

Exhibit E Statement of Corporate Relationship or Existing Contract - Not

Applicable

Exhibit F Operating Procedures - Not Applicable

Pursuant to the requirement of 10 C.F.R. § 205.309, a copy of this Application is being

provided to:

Secretary Kimberly D. Bose

Federal Energy Regulatory Commission

Office of the Secretary

888 First Street, N.E.

Washington, DC 20426

IV. CONCLUSION

In consideration of the foregoing, DEMI respectfully requests expeditious approval of

this application for the renewal of its authorization to export electric energy to Canada for a term

of ten years on substantially the same terms and conditions as applied to similarly-situated power

marketers.

Respectfully submitted,

/s/ John Schultz

John Schultz

Co-President

Direct Energy Marketing Inc.

November 13, 2020

EXHIBIT A

Agreements

(Not Applicable)

Exhibit B

Legal Opinion

I, Bray Dohrwardt, am the Co-Secretary of Direct Energy Marketing Inc. (the “Corporation”) and

act as legal counsel to the Corporation. I have been asked to provide an opinion pursuant to 10 C.F.R. §

205.303(b) with respect to the Corporation’s Renewal of Authorization to Transmit Electric Energy to

Canada (the “Renewal”) dated November 13, 2020.

I hereby certify on behalf of the Corporation and without personal liability in support of the

Renewal that:

(1) The Corporation is duly incorporated and validly existing under the corporate

laws of the state of Delaware;

(2) The Corporation has the corporate capacity to act in the manner described in the

Renewal;

(3) To the best of my knowledge and belief, the Corporation and its officers

and directors have complied with all pertinent federal and state laws related to the

actions to be undertaken pursuant to the Renewal.

This opinion is limited to the laws of the United States, as they exist at the date set forth

above. I am not assuming any obligation to review or update this opinion should the existing

facts or circumstances change. I express no opinion as to the law of any other jurisdictions. This

opinion is rendered to the Corporation solely in connection with the Renewal, and may not be

relied upon for any other purpose without my prior written consent.

______________________________

Bray Dohrwardt

Co-Secretary, Direct Energy Marketing Inc.

Date: November 13, 2020

Exhibit C

Description of Export Facilities

(List of Transmission, submitted in lieu of maps)

Present Owner Location Voltage Presidential Permit

No.

Bangor Hydro Electric Co. Baileyville, ME 345 kV PP-89

Basin Electric Power Cooperative Tioga, ND 230 kV PP-64

Bonneville Power Administration Blaine, WA 2x 500 kV PP-10

Nelway, WA 230 kV PP-36

Nelway, WA 230 kV PP-46

Eastern Maine Electric Cooperative Calais, ME 69 kV PP-32

International Transmission Co. Detroit, MI 230 kV PP-230

Marysville, MI 230 kV PP-230

St. Claire, MI 230 kV PP-230

St. Claire, MI 345 kV PP-230

ITC Lake Erie Connector Erie County, PA 320 kV PP-412

Joint Owners of the Highgate Project Highgate, VT 120 kV PP-82

Long Sault, Inc. Massena, NY 2x 115 kV PP-24

Maine Electric Power Co. Houlton, ME 345 kV PP-43

Maine Public Service Co. Limestone, ME 69 kV PP-12

Fort Fairfield, ME 69 kV PP-12

Madawaska, ME 138 kV PP-29

Aroostoock, ME 2x 69 kV PP-29

Minnesota Power Inc. International Falls, MN 115 kV PP-78

Minnesota Power Inc. Roseau County, MN 500 kV PP-398

Minnkota Power Cooperative Roseau County, MN 230 kV PP-61

Montana Alberta Tie Ltd. Cut Bank, MT 230 kV PP-305

Present Owner Location Voltage Presidential Permit

No.

New York Power Authority Massena, NY 765 kV PP-56

Massena, NY 2x 230 kV PP-25

Niagara Falls, NY 2x 345 kV PP-74

Devil’s Hole, NY 230 kV PP-30

Niagara Mohawk Power Corp. Devil’s Hole, NY 230 kV PP-190

Northern States Power Co. Red River, ND 230 kV PP-45

Roseau County, MN 500 kV PP-63

Rugby, ND 230 kV PP-231

Sea Breeze Olympic Converter LP Port Angeles, WA ±450 kV DC PP-299

Vermont Electric Power Co. Derby Line, VT 120 kV PP-66

Vermont Electric Transmission Co. Norton, VT ±450 kV DC PP-76

EXHIBIT D

Designation of Agent

(Not Applicable)

Exhibit E

Relationships/Contracts Regarding Rates

(Not Applicable)

Exhibit F

Operating Procedures

(Not Applicable)

ATTACHMENT 1

Verification