FERC Issues Order Authorizing Disposition of Jurisdictional Facilities re Beech Ridge Energy LLC et al Under EC14-100
| Targeted News Service |
Docket No. EC14-100-000
ORDER AUTHORIZING DISPOSITION OF JURISDICTIONAL FACILITIES
(Issued
On
1.
Beech Ridge is an indirect wholly-owned subsidiary of
Beech Ridge, Beech Ridge II and
Bishop Hill I is an EWG and has been granted market-based rate authorization by the Commission.
Bishop Hill Interconnection is a EWG and does not sell power. Bishop Hill Interconnection has been granted waivers from the Commission's open access transmission requirements. Bishop Hill Interconnection owns undivided interests in the interconnection poles described above and owns an approximately 28 mile generator-tie line, substation and related facilities that connect to the
California Ridge is a EWG and has been granted market-based rate authorization by the Commission.
Forward Energy is a EWG and has been granted market-based rate authorization by the Commission.
Grand Ridge I is a EWG and has been granted market-based rate authorization by the Commission.
Grand Ridge II is a EWG and has been granted market-based rate authorization by the Commission.
Grand Ridge III is a EWG and had been granted market-based rate authorization by the Commission.
Grand Ridge IV is a EWG and has been granted market-based rate authorization by the Commission. Grand Ridge IV is an indirect, wholly-owned subsidiary of
Grand Ridge V is a EWG and has been granted market-based rate authorization by the Commission. Grand Ridge V is an indirect, wholly-owned subsidiary of
Grand Ridge Energy Storage is not yet a public utility. Grand Ridge Energy Storage is developing and plans to construct, own and operate energy storage devices (i.e. batteries) with a capacity of up to 32.4 MW that will be located in
Grand Ridge I, Grand Ridge II, Grand Ridge II, Grand Ridge IV, and Grand Ridge V (collectively "GR Companies"), are parties to a co-tenancy agreement that governs their joint ownership and use of certain discrete generator interconnection facilities that connect their generation facilities to the ComEd transmission system, which each of the companies will use or plan to use to effectuate their respective wholesale power sales (the GR Co-Tenancy Agreement"). The shared, jointly owned interconnection facilities that the GR Companies own or plan to own an undivided interest in under the GR Co-Tenancy Agreement are a discrete, 1.6 mile radial line, a substation and other related equipment (GR Shared Interconnection Facilities) that connect to the transmission system owned by
Gratiot I is an EWG and has been granted market-based rate authorization by the Commission.
Gratiot II is an EWG and has been granted market-based rate authorization. Gratiot II is an indirect, wholly-owned subsidiary of
Invenergy TN is an EWG and has received market-based rate authorization by the Commission.
Judith Gap is an EWG and has received market-based rate authorization by the Commission.
Sheldon Energy is an EWG and has been granted market-based rate authorization.
Spring Canyon is an EWG and has received market-based rate authorization.
Spring Canyon II is an indirect, wholly-owned subsidiary of
Spring Canyon III is an indirect wholly-owned subsidiary of
SC Interconnection in an indirect wholly-owned subsidiary of
Spring Canyon, Spring Canyon II, Spring Canyon III, and SC Interconnection plan to enter into a co-tenancy/coordination agreement that will govern their proposed joint ownership or use of certain discrete generator interconnection facilities that connect, or will connect in the case of Spring Canyon II and Spring Canyon III, their power projects to the transmission system owned by Public Service Co. of
Stony Creek is an EWG and has received market-based rate authorization. Stony Creek is an indirect, wholly-owned subsidiary of
Vantage Wind is an EWG and has been granted market-based rate authorization.
Willow Creek is an EWG and has received market-based rate authorization.
Wolverine Creek is an EWG and has received market-based rate authorization. Wolverine Creek has also been granted waiver of the Commission's open access transmission requirements.
Wolverine Creek Goshen Interconnection is an EWG and has been granted waiver from the Commission's open access transmission requirements. Wolverine Creek Goshen Interconnection owns and operates a substation and an approximately 18 mile generator lead line and related equipment that connects the Wolverine Creek Facility to the transmission system of
Prairie Breeze is an EWG and a indirect, wholly-owned subsidiary of
2.
As noted above, the Applicants are indirect wholly-owned or partially-owned subsidiaries of
In addition to the Applicants,
Another subsidiary of
3.
Applicants state that while these affiliates of
4. CDPQ Investments and Its Affiliates
CDPQ Investments is a wholly-owned subsidiary of Caisse de depot et placement du Quebec (The "Caisse"). The Caisse is a Canadian pension and investment entity. The Caisse holds a 65.81 percent ownership interest in
The Caisse also holds equity interest in various other electric utilities in
According to Applicants, once the conditions to the Proposed Transaction are satisfied, CDPQ Investments will acquire approximately 24.73 percent of the passive, non-controlling equity interests in
Applicants state that when the Proposed Transaction closes,
As the managing member and majority equity owner,
While the Proposed Transaction will result in a partial change in Applicants' upstream owners, the application states that each Applicant will continue to own its assets including its FPA-jurisdictional contracts and facilities.
Applicants state that the Proposed Transaction will not have an adverse effect on competition, rates, and regulation, and will not result in any cross-subsidization concerns. The application states that the Proposed Transaction will not have an adverse effect on competition. According to Applicants, the Proposed Transaction does not raise any horizontal market power concerns. The application states that Proposed Transaction will not increase the amount of generation that
Applicants state that the Proposed Transaction does not raise any vertical market power concerns. The application states that the Proposed Transaction will not result in any new combination of transmission or gas assets. The application states that other than limited electric interconnection facilities that the Applicants own, or plan to own or use, to effectuate their respective wholesale power sales from projects owned by the applicable Applicants (and the limited electric interconnection facilities owned Marsh Hill and the Other Invenergy Generators), none of the Applicants or
Applicants state that the Proposed Transaction will have no adverse effect on rates. The application states that the Applicants (other than Beech Ridge II, Beech Ridge Energy Storage, Grand Ridge Energy Storage, Spring Canyon II, Spring Canyon III, Wolverine Creek Goshen Interconnection and Bishop Hill Interconnection) have market-based rate authorization and will continue to sell power to their respective customers pursuant to negotiated rates under power sale arrangements entered into pursuant to their respective market-based rate tariffs. Beech Ridge II, Beech Ridge Energy Storage, Grand Ridge Energy Storage, Spring Canyon II, Spring Canyon III, have not yet filed for or obtained market-based rate authority but intend to do so in the future and that may occur prior to the closing of the Proposed Transaction. Applicants state that while these companies are not currently public utilities, if they become public utilities prior to the closing of the Proposed Transaction it will be in connection with its market-based rate tariff on file with the Commission. Beech Ridge II, Beech Ridge Energy Storage, Grand Ridge Energy Storage, Spring Canyon II, Spring Canyon III, will sell power to their customers pursuant to their market-based rate tariffs. The Proposed Transaction will not affect the rates that Beech Ridge II, Beech Ridge Energy Storage, Grand Ridge Energy Storage, Spring Canyon II, Spring Canyon III will be authorized to charge under their market-based rate tariffs.
Wolverine Creek Goshen Interconnection, Bishop Hill Interconnection, and SC Interconnection do not have any power sale rate schedules or tariffs because they do not sell power (and do not plan to sell power) and have no power sales customers.
As described above, Wolverine Creek Goshen Interconnection, Wolverine Creek, Bishop Hill I, Bishop Hill Interconnection, the GR Companies, Gratiot I and Gratiot II have their respective co-tenancy agreements on file with the Commission that govern their joint ownership or use of their respective shared limited interconnection facilities. Also as noted above, Beech Ridge II, Beech Ridge Energy Storage, Grand Ridge Energy Storage, Spring Canyon. Spring Canyon II, Spring Canyon III, and SC Interconnection plan to enter into agreements that will govern joint ownership or use of shared limited interconnection facilities and each plan to file with the Commission its respective rate schedule, which, if filed before the Proposed Transaction closes, may become effective as such company's FERC jurisdictional rate schedule by the time the Proposed Transaction closes. Therefore, Applicants state that the Proposed Transaction does not affect any of the agreements described above involving shared limited interconnection arrangements and will have no effect on such agreements.
With respect to the effect on regulation, Applicants state that the Proposed Transaction will not affect the manner or extent to which the Commission, any state, or any other federal agency may regulate Applicants and their affiliates. Applicants state that upon completion of the Proposed Transaction, they will continue to be subject to the jurisdiction of the Commission (and any other regulatory agency or office) to the same extent as before the Proposed Transaction.
Applicants state that the Proposed Transaction will not result in the cross-subsidization of a non-utility associate company or the pledge or encumbrance of utility assets for the benefit of an associate company. The application states that none of Applicants' or their affiliates is a traditional public utility associate company that has captive ratepayers in
The filings were noticed on
Information and/or systems connected to the bulk system involved in this transaction may be subject to reliability and cybersecurity standards approved by the Commission pursuant to FPA section 215. Compliance with these standards is mandatory and enforceable regardless of the physical location of the affiliates or investors, information database, and operating systems. If affiliates, personnel or investors are not authorized for access to such information and/or systems connected to the bulk power system, a public utility is obligated to take the appropriate measures to deny access to this information and/or the equipment/software connected to the bulk power system. The mechanisms that deny access to information, procedures, software, equipment, etc., must comply with all applicable reliability and cybersecurity standards. The Commission,
When a controlling interest in a public utility is acquired by another company, whether a domestic company or a foreign company, the Commission's ability to adequately protect public utility customers against inappropriate cross-subsidization may be impaired absent access to the parent company's books and records. Section 301 (c) of the FPA gives the Commission authority to examine the books and records of any person who controls, directly or indirectly, a jurisdictional public utility insofar as the books and records relate to transactions with or the business of such public utility. The approval of this transaction is based on such examination ability.
Order No. 652 requires that sellers with market based rate authority 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. The foregoing authorization may result in a change in status. Accordingly, Applicants are advised to make a change in status filing as required by Order No. 652, if necessary. In addition, Applicants shall make appropriate filings under section 205 of the FPA, as necessary, to implement the Proposed Transaction.
After consideration, it is concluded that the Proposed Transaction is consistent with the public interest and is authorized, subject to the following conditions:
(1) The Proposed Transaction is authorized upon the terms and conditions and for the purposes set forth in the application;
(2) The foregoing authorization is without prejudice to the authority of the Commission or any other regulatory body with respect to rates, service, accounts, valuation, estimates, or determinations of cost, or any other matter whatsoever now pending or which may become before the Commission;
(3) Nothing in this order shall be construed to imply acquiescence in any estimate or determination of cost or any valuation of property claimed or asserted;
(4) The Commission retains authority under sections 203(b) and 309 of the FPA to issue supplemental orders as appropriate;
(5) If the Proposed Transaction results in changes in the status or upstream ownership of Applicants' affiliated qualifying facilities, if any, an appropriate filing for recertification pursuant to 18 C.F.R. section 292.207 (2013) shall be made;
(6) Applicants shall make the appropriate filings under section 205 of the FPA, as necessary, to implement the Proposed Transaction;
(7) Applicants must inform the Commission of any change in circumstances that would reflect a departure from the facts the Commission relied upon in authorizing the Proposed Transaction; and
(8) Applicants shall notify the Commission within 10 days of the date that the disposition of jurisdictional facilities under the Proposed Transaction ha been consummated.
This action is taken pursuant to the authority delegated to the Director,
Director,
Power Regulation - West
TNS 18EstebanLiz-140704-30FurigayJane-4787884 30FurigayJane
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