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FERC Issues Letter Order Accepting Commonwealth Chesapeake Company LLC's et al 6/27/14 Filing of the Updated Market Power Analysis in Compliance with...(Targeted News Service Via Acquire Media NewsEdge) FERC Issues Letter Order Accepting Commonwealth Chesapeake Company LLC's et al 6/27/14 Filing of the Updated Market Power Analysis in Compliance with Order No. 697 Under ER10-3078 et al WASHINGTON, Oct. 16 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order: In Reply Refer To: Commonwealth Chesapeake Company LLC Tyr Energy, LLC Docket Nos. ER10-3078-002 ER10-3079-007 October 16, 2014 Mr. Jonathan W. Gottlieb Attorney for Commonwealth Chesapeake Company LLC and Tyr Energy, LLC Stinson Leonard Street 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. Gottlieb: On June 27, 2014, you filed on behalf of Commonwealth Chesapeake Company, LLC and Tyr Energy, LLC (Commonwealth Sellers) 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 order granting Commonwealth Sellers authority to sell electric energy and capacity at market-based rates. Your filing was noticed on June 27, 2014, with comments, protests or interventions due on or before August 26, 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 the Commonwealth Sellers own and operate approximately 1,219 megawatts (MW) of electric generation capacity in the PJM Interconnection, L.L.C. (PJM) market as well as another 551 MW of electric generation capacity in the Midcontinent Independent System Operator, Inc. market, which is first-tier to the PJM market. You state all of your output is fully committed to non-affiliated third parties under long-term power purchase agreements. You add that the Commonwealth Sellers are wholly owned by ITOCHU International, Inc., and by I-Power Investment Inc. You represent that Commonwealth Sellers do not own or control transmission facilities and are not affiliated with entities that own or control any transmission facilities. Further, you affirmatively state that Commonwealth Sellers 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 all of Commonwealth Sellers' generation capacity is fully committed under long-term power purchase agreements and thus they do not have any uncommitted capacity in the PJM market. Based on your representations, Commonwealth Sellers' submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power. Based on your representations, Commonwealth Sellers' submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power. Commonwealth Sellers must file electronically with the Commission Electric Quarterly Reports. Commonwealth 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 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: Michelle Barnaby Phone: (202) 502-8407 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-141017-30FurigayJane-4901904 30FurigayJane (c) 2014 Targeted News Service |