Just confirming:Yes, in every bureaucracy phase prior to Step 3, the highest numbered power plant in the market is put under the step 3 card (on the bottom of the draw pile).
1) A player connects his 7th city
2) A one time event occurs where the lowest power plant on the auction track is removed.
3) Now is the bureaucracy phase and people get paid and the highest factory is removed and placed under the draw pile.
Are any cards in step 1 ever placed under the draw pile?