(Targeted News Service Via Acquire Media NewsEdge) FERC Issues Letter Order Accepting Indigo Generation LLC's 6/13/2013, As Amended on 3/13/2014, Filing of an Updated Market Power Analysis for the Southwest Region in Compliance with the Regional Reporting Schedule Adopted in Order No. 697
WASHINGTON, March 28 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order:
Indigo Generation LLC
Larkspur Energy LLC
Wildflower Energy LP
Mariposa Energy, LLC
In Reply Refer To:
Docket Nos. ER10-2238-006
March 28, 2014
Mr. Adam Wenner
Counsel for Applicants
Orrick, Herrington & Sutcliffe LLP
1152 15th Street, N.W.
Washington, D.C. 20005
Reference: Updated Market Power Analysis in Compliance with Order No. 697
Dear Mr. Wenner:
On June 13, 2013, as amended on March 13, 2014, you filed on behalf of Applicants 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 Applicants authority to sell electric energy and capacity at market-based rates.
Your filings were noticed on June 14, 2013, and March 13, 2014, with comments, protests or interventions due on or before August 12, 2013, and March 24, 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 dockets are accepted for filing.
You state that Applicants own and operate multiple generation facilities with a combined total of 427 megawatts of generation capacity located in the California Independent System Operator Corp. (CAISO) market. You add that Applicants are wholly owned by Diamond Generating Corporation, a wholly-owned subsidiary of Mitsubishi Corporation. You represent that Applicants' affiliate, Wolverine Creek Goshen Interconnection, LLC (Wolverine Creek) owns a transmission line in the PacifiCorp East balancing authority area. You state that Wolverine Creek has an open access transmission tariff on file with the Commission and therefore has mitigated any transmission market power. You also state that Applicants are not affiliated with any entities that own, operate, or control transmission facilities in the Southwest region. Further, you affirmatively state that Applicants 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 Applicants rely on Agua Caliente Solar, LLC's recently accepted market power analysis to demonstrate that Applicants pass both the pivotal supplier and the wholesale market share screens for the CAISO market. Accordingly, Applicants' submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power.
Based on your representations, Applicants' submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power.
Applicants must file electronically with the Commission Electric Quarterly Reports. Applicants 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 Applicants.
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
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