TMCnet News
FERC Issues Letter Order Accepting Old Dominion Electric Cooperative et al 12/13/13 Filing of an Updated Market Power Analysis in Compliance with...(Targeted News Service Via Acquire Media NewsEdge) FERC Issues Letter Order Accepting Old Dominion Electric Cooperative et al 12/13/13 Filing of an Updated Market Power Analysis in Compliance with Order No. 697 Under ER10-2607 et al WASHINGTON, Oct. 14 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order: In Reply Refer To: Old Dominion Electric Cooperative, New Dominion Energy Cooperative, and TEC Trading, Inc. Docket Nos. ER10-2607-003, ER10-2624-002, and ER10-2626-002 October 14, 2014 Mr. John E. McCaffrey Attorney for Old Dominion Electric Cooperative, New Dominion Energy Cooperative, and TEC Trading, Inc. Stinson Morrison Hecker LLP 1775 Pennsylvania Avenue, N.W. Suite 800 Washington, D.C. 20006 Reference: Updated Market Power Analysis in Compliance with Order No. 697 Dear Mr. McCaffrey: On December 13, 2013, you filed on behalf of Old Dominion Electric Cooperative (Old Dominion), New Dominion Energy Cooperative (New Dominion), and TEC Trading, Inc. (TEC Trading) (collectively, the Old Dominion Companies) an updated market power analysis for the Northeast region in compliance with the regional reporting schedule adopted in Order No. 697 and pursuant to the Commission's orders granting the Old Dominion Companies authority to sell electric energy and capacity at market-based rates. Your filing was noticed on December 16, 2013, with comments, protests or interventions due on or before February 11, 2014. 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 Old Dominion owns and operates approximately 2,152 megawatts (MW) of generation capacity in the PJM Interconnection, L.L.C. (PJM) market that includes 386 MW of generation capacity in the PJM East submarket. You add that the Old Dominion Companies control 43 MW of capacity in the PJM market through a full requirements contract, 73 MW through an entitlement from the Southeastern Power Administration, and 215.4 MW through long-term power purchase agreements. You explain that Old Dominion is a power supply electric cooperative that provides generation, transmission, ancillary and other services to its members. You further state that New Dominion is a cooperative affiliate of Old Dominion that was created as part of a reorganization and that TEC Trading is a member of Old Dominion that is also owned by Old Dominion's member distribution cooperatives. You represent that all of the transmission assets owned by the Old Dominion Companies are located within PJM and are subject to PJM's open access transmission tariff on file with the Commission, and therefore that the Old Dominion Companies have mitigated any transmission market power. Further, you affirmatively state that the Old Dominion 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. The Old Dominion Companies have prepared the pivotal supplier and wholesale market share screens for the PJM market and PJM East submarket consistent with the requirements of Order No. 697, when the Commission-accepted Simultaneous Transmission Import Limit (SIL) study results are taken into consideration for those areas. The Old Dominion Companies' horizontal market power screens have been reviewed, and the Old Dominion Companies pass both the pivotal supplier and wholesale market share screens in those markets when the Commission-accepted SIL values for those areas are applied. Based on your representations, the Old Dominion Companies' submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power. Based on your representations, the Old Dominion Companies' submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power. The Old Dominion Companies must file electronically with the Commission Electric Quarterly Reports. The Old Dominion 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 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-141015-30FurigayJane-4898374 30FurigayJane (c) 2014 Targeted News Service |