FERC Issues Letter Order Accepting Bruce Power Inc's 7/1/13 Filing of an Updated Market Power Analysis for the Southwest region in Compliance with...
(Targeted News Service Via Acquire Media NewsEdge) FERC Issues Letter Order Accepting Bruce Power Inc's 7/1/13 Filing of an Updated Market Power Analysis for the Southwest region in Compliance with the Regional Reporting Schedule Adopted in Order No. 697 Under ER10-3097
WASHINGTON, March 13 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order:
In Reply Refer To:
Bruce Power Inc.
Docket No. ER10-3097-001
March 13, 2014
Mr. Vincenzo Franco
Attorney for Bruce Power Inc.
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 Mr. Franco:
On July 1, 2013, you filed on behalf of Bruce Power Inc. (Bruce Power) 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 Bruce Power authority to sell electric energy and capacity at market-based rates.
Your filing was noticed on July 1, 2013, with comments, protests or interventions due on or before August 30, 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 docket is accepted for filing.
You represent that Bruce Power is an Ontario, Canada corporation whose shares are equally held by BPC Generation Infrustructure Trust, Cameco Corporation, and TransCanada Energy Management Inc. You state that Bruce Power is affiliated with Coolidge Power, LLC, which owns a 575 megawatt (MW) natural gas electric generating facility located in the Salt River Project balancing authority area (SRP), the output of which is fully committed under a long-term power sales contract. You represent that an affiliate, TransCanada Maine Wind Development Inc., owns a 25-mile transmission line in the ISO New England, Inc. market, for which it has received waiver of the Commission's open-access requirements and therefore has mitigated any transmission market power. Further, you affirmatively state that Bruce Power 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 Bruce Power's affiliated generation capacity in the SRP balancing authority area is fully committed under a power purchase agreement and thus it does not have any uncommitted capacity in the Southwest region. Based on your representations, Bruce Power's submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power.
Based on your representations, Bruce Power's submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power.
Bruce Power must file electronically with the Commission Electric Quarterly Reports. Bruce Power 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 the applicant.
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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