FERC Order to Champion Energy, LLC, Champion Energy Marketing LLC, and Champion Energy Services, LLC on Updated Market Power Analysis in Compliance...
(Targeted News Service Via Acquire Media NewsEdge) FERC Order to Champion Energy, LLC, Champion Energy Marketing LLC, and Champion Energy Services, LLC on Updated Market Power Analysis in Compliance with Order No. 697
WASHINGTON, Sept. 6 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order:
In Reply Refer To:
Champion Energy, LLC,
Champion Energy Marketing LLC, and Champion Energy Services, LLC
Docket Nos. ER10-3051-010, ER10-2985-009, and ER10-3049-010
Ms. Catherine M. Krupka
Attorney for Champion Energy, LLC, Champion Energy Marketing LLC, and
Champion Energy Services, LLC
Sutherland Asbill & Brennan LLP
700 Sixth Street, N.W., Suite 700
Washington, D.C. 20001
Reference: Updated Market Power Analysis in Compliance with Order No. 697
Dear Ms. Krupka:
On January 9, 2013, as amended on March 26, 2013, and May 9, 2013, you filed on behalf of Champion Energy, LLC, Champion Energy Marketing LLC, and Champion Energy Services, LLC (collectively, the Champion Companies) an updated market power analysis for the Southwest region in compliance with the regional reporting schedule adopted in Order No. 697 and pursuant to the Commission's orders granting the Champion Companies authority to sell
electric energy and capacity at market-based rates.
Your filings were noticed on January 10, 2013, March 27, 2013, and May 10, 2013, with comments, protests or interventions due on or before March 11, 2013, April 16, 2013, and May 30, 2013, respectively. None was filed.
Pursuant to the authority delegated to the Director, Division of Electric Power Regulation - West, under 18 C.F.R. section 375.307, your submittals filed in the referenced dockets are accepted for filing.
You state that the Champion Companies are all competitive retail marketers that do not own or control any generation or transmission facilities. You state that the Champion Companies are partially owned by Champion Energy Holdings, LLC, which is ultimately controlled by Crane Capital Holdings Ltd, and partially owned by EDF Trading North America, LLC, which is an indirect, wholly-owned subsidiary of Electricite de France, SA.
You represent that the Champion Companies are affiliated with entities that own or control approximately 844 megawatts of generation capacity in the Southwest region. You state that an affiliate of the Champion Companies, Oasis Power Partners, LLC, holds an equity interest in the Sagebrush Partnership (Sagebrush), which owns transmission facilities in the CAISO market. You further state that Sagebrush has an open access transmission tariff (OATT) on file with the Commission and therefore has mitigated any transmission market power. You also state that the Champion Companies are affiliated with Pacific Wind Lessee, LLC and Catalina Solar, LLC, which own interests in generation tie line interconnection facilities located in the California Independent System Operator Corp. market; we note that the Commission has granted OATT waivers for these facilities. You additionally state that the Champion Companies are affiliated with Spinning Spur Wind LLC, which owns a transmission facility for which the Commission has granted an OATT waiver. Further, you affirmatively state that the Champion Companies have not erected barriers to entry and will not erect barriers to entry into the relevant market.
Market-Based Rate Authorization
The Commission allows power sales at market-based rates if the seller and its affiliates do not have, or have adequately mitigated, horizontal and vertical market power.
You state that the Champion Companies rely on North Sky River Energy, LLC's recently accepted market power analysis to demonstrate that the Champion Companies pass both the pivotal supplier and the wholesale market share screens for the CAISO market. Accordingly, the Champion Companies' submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power.
Based on your representations, the Champion Companies' submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power.
The Champion Companies must file electronically with the Commission Electric Quarterly Reports. The Champion Companies further must timely report to the Commission any change in status that would reflect a departure from the characteristics the Commission relied upon in granting market-based rate authority.
This action does not constitute approval of any service, rate, charge, classification, or any rule, regulation, or practice affecting such rate or service provided for in the filed documents; nor shall such action be deemed as recognition of any claimed contractual right or obligation affecting or relating to such service or rate; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against any of the applicant(s).
This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R section 385.713.
Questions regarding the above order should be directed to:
Federal Energy Regulatory Commission
Attn: Debra Irwin
Phone: (202) 502-6253
Office of Energy Market Regulation
888 First Street, N.E.
Washington, D.C. 20426
Steve P. Rodgers, Director
Division of Electric Power
Regulation - West
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(c) 2013 Targeted News Service
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