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FERC Issues Letter Order Accepting New Harquahala Generating Company, LLC's 3/29/13, as Amended on 5/30/14 an Updated Market Power Analysis in...(Targeted News Service Via Acquire Media NewsEdge) FERC Issues Letter Order Accepting New Harquahala Generating Company, LLC's 3/29/13, as Amended on 5/30/14 an Updated Market Power Analysis in Compliance with Order No. 697 Under ER10-3310 WASHINGTON, Sept. 12 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order: In Reply Refer To: New Harquahala Generating Company, LLC Docket No. ER10-3310-004 September 12, 2014 Mr. James C. Liles Regulatory Advisor for New Harquahala Generating Company, LLC Milbank, Tweed, Hadley & McCloy LLP 1850 K Street, N.W. Suite 1100 Washington, D.C. 20006 Reference: Updated Market Power Analysis in Compliance with Order No. 697 Dear Mr. Liles: On March 29, 2013, as amended on May 30, 2014, you filed on behalf of New Harquahala Generating Company, LLC (New Harquahala) 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 order granting New Harquahala authority to sell electric energy and capacity at market-based rates. Your filings were noticed on March 29, 2013 and June 2, 2014, with comments, protests or interventions due on or before May 28, 2013 and June 13, 2014, 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 docket are accepted for filing. You state that New Harquahala owns and operates a 1,092 megawatt (MW) natural gas-fired generating facility, located in Maricopa County, Arizona. You add that New Harquahala is wholly owned by MACH Gen, LLC, and is affiliated with La Paloma Generating Company, LLC, which owns a 1,022 MW generating facility located in the California Independent System Operator Corp. market. You further add that New Harquahala is not affiliated with any other entities that own or control any other generation facilities. You state that New Harquahala owns a transmission facility for which the Commission has granted waiver from the requirement to file an OATT under Order Nos. 888, 889 and 890. Further, you affirmatively state that New Harquahala 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 New Harquahala relies on Arizona Public Service Company's recently filed market power analysis to demonstrate that it passes both the pivotal supplier and the wholesale market share screens for the Arizona Public Service Company balancing authority area. Accordingly, based on your representations and subject to the Commission's determinations in Arizona Public Service Company's pending proceeding, New Harquahala's submittals satisfy the Commission's requirements for market-based rate authority. Based on your representations, New Harquahala's submittals also satisfy the Commission's requirements for market-based rate authority regarding vertical market power. New Harquahala must file electronically with the Commission Electric Quarterly Reports. New Harquahala 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 in accordance with Order No. 697. 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 Sincerely, Steve P. Rodgers, Director Division of Electric Power Regulation - West TNS 18EstebanLiz-140913-30FurigayJane-4859012 30FurigayJane (c) 2014 Targeted News Service |