FERC Issues Letter Order Accepting Sellers' 12/27/13 Filing of an Updated Market Power Analysis for the Southwest Region in Compliance with the...
(Targeted News Service Via Acquire Media NewsEdge) FERC Issues Letter Order Accepting Sellers' 12/27/13 Filing of an Updated Market Power Analysis for the Southwest Region in Compliance with the Regional Reporting Schedule Adopted in Order 697 Under ER10-3168 et al
WASHINGTON, Nov. 4 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order:
In Reply Refer To:
ArcLight Energy Marketing, LLC
Docket Nos. ER10-3168-004
Badger Creek Limited
Double "C" Limited
High Sierra Limited
Kern Front Limited
November 4, 2013
Ms. Jessica C. Friedman
Attorney for Sellers
Van Ness Feldman, LLP
1050 Thomas Jefferson Street, N.W.
Washington, D.C. 20007
Reference: Updated Market Power Analysis in Compliance with Order No. 697
Dear Ms. Friedman:
On December 27, 2012, you filed on behalf of Sellers 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 Sellers authority to sell electric energy and capacity at market-based rates.
Your filing was noticed on December 31, 2012, with comments, protests or interventions due on or before February 25, 2013. 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 submittal filed in the referenced dockets is accepted for filing.
You state that Sellers own and operate 195.4 megawatts in aggregate of generation capacity, all of which is located in Bakersfield, California within the California Independent System Operator Corp. (CAISO) market. You further state that ArcLight Energy Marketing, LLC (ArcLight Marketing) is a wholly-owned subsidiary of ArcLight Energy Markets, LLC, which in turn is a wholly-owned subsidiary of ArcLight Liquid Energy Opportunities Fund, L.P.
You add that Badger Creek Limited, High Sierra Limited, and Kern Front Limited are wholly-owned indirect subsidiaries of ArcLight Energy Partners Fund II, L.P. (ArcLight Fund II), and that Double "C" Limited is a majority-owned indirect subsidiary of ArcLight Fund II. You add that Sellers are affiliated with approximately 1,866 MW of additional generation capacity in the CAISO market and 222 MW of generation capacity in the Nevada Power Company balancing authority area within the Southwest region.
You state that an affiliate of ArcLight Marketing, Terra-Gen Dixie Valley, LLC, owns a 212-mile, 230 kilovolt transmission line and has an open access transmission tariff on file with the Commission. You add that other affiliates own transmission facilities in California, but have received waiver from the requirement to file open access transmission tariffs. You therefore state that ArcLight Marketing has mitigated any transmission market power. Further, you affirmatively state that ArcLight Marketing has 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 all of Sellers' and their affiliated generation capacity in the CAISO market is fully committed under long-term power purchase agreements and thus they do not have any uncommitted capacity in the CAISO market. Based on your representations, Sellers' submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power.
Based on your representations Sellers' submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power.
Sellers must file electronically with the Commission Electric Quarterly Reports. Sellers 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: Melissa Lozano
Phone: (202) 502-6267
Office of Energy Market Regulation
888 First Street, N.E.
Washington, D.C. 20426
Steve P. Rodgers, Director
Division of Electric Power
Regulation - West
(c) 2013 Targeted News Service
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