FERC Issues Order Authorizing Disposition of Jurisdictional Facilities re KEF Equity Investment Corp Under EC14-104
Targeted News Service |
ORDER AUTHORIZING DISPOSITION OF JURISDICTIONAL FACILITIES
(Issued
On
Although KEF Equity states that the Proposed Transaction may not require Commission approval under FPA section 203 (a)(1), it nevertheless asks the Commission to approve the application. This order approves the Proposed Transaction without making any determination of jurisdiction.
KEF Equity is a
Blue Canyon has two classes of membership interests. The
Caprock, a
The
Pursuant to a purchase agreement between
Applicant states that the Proposed Transaction is consistent with the public interest and will not have an adverse effect on competition, rates, or regulation. With regard to horizontal market power, the Applicant states that the Proposed Transaction raises no concerns. Applicant states that the only effect of the Proposed Transaction is that the non-managing, direct and indirect, Class A membership interests in the Project Companies owned by KEF Equity will be transferred to
With respect to vertical market power, Applicant writes that the Proposed Transaction will not result in adverse vertical competitive effects. Applicant states that no transmission facilities are involved in the Proposed Transaction, except for the limited interconnection facilities necessary to connect the electric generation facilities of the Project Companies to the electric transmission grid. Applicant states that
Applicant states that the Proposed Transaction will have no effect on the rates charged by the Project Companies because they will continue to make sales pursuant to their existing long-term wholesale contracts. Applicant states that the Proposed Transaction will not change the rates, terms or conditions contained in any of the Project Companies' sales activities or the documents governing those activities. Applicant states that none of the Project Companies,
With regard to regulation, the Applicant states that the Proposed Transaction will not have an adverse effect. Applicant states that, after the Proposed Transaction is consummated, the Commission will continue to exercise the same jurisdiction over the Project Companies and their sales of electric energy at wholesale as it exercises currently. Applicant states that the Proposed Transaction will have no effect on state commission regulation and is not subject to approval by any state commission.
Applicant states 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. Applicant asserts that the Proposed Transaction falls within one of the "safe harbors" adopted by the Commission for which detailed explanation and evidentiary support to demonstrate a lack of cross-subsidization is not required. Applicant more specifically states that the Proposed Transaction does not involve a franchised public utility with captive customers.
Additionally, Applicant verifies that, based on facts and circumstances known to it or that are reasonably foreseeable, the Proposed Transaction will not result in, at the time of the Proposed Transaction or in the future: (1) any transfer of facilities between a traditional public utility associate company that has captive customers or that owns or provides transmission service over jurisdictional transmission facilities, and an associate company; (2) any new issuance of securities by a traditional public utility associate company that has captive customers or that owns or provides transmission service over jurisdictional transmission facilities, for the benefit of an associate company; (3) any new pledge or encumbrance of assets of a traditional public utility associate company that has captive customers or that owns or provides transmission service over jurisdictional transmission facilities, for the benefit of an associate company; or (4) any new affiliate contract between a non-utility associate company and a traditional public utility associate company that has captive customers or that owns or provides transmission service over jurisdictional transmission facilities, other than non-power goods and service agreements subject to review under sections 205 and 206 of the FPA.
The filing was 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,
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 that they must comply with the requirements of Order No. 652. In addition, Applicants shall make any necessary filings under section 205 of the FPA 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 costs, or any other matter whatsoever now pending or which may come 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 qualifying facilities, an appropriate filing for recertification pursuant to 18 C.F.R. section 292.207 (2013) shall be made;
(6) Applicant shall make appropriate filings under section 205 of the FPA, as necessary, to implement the Proposed Transaction; (7) Applicant must inform the Commission, within 10 business days of the change, of any change in circumstances that would reflect a departure from the facts the Commission relied upon in authorizing the Proposed Transaction; and (8) Applicant shall notify the Commission within 10 days of the date that the disposition of jurisdictional facilities has been consummated.
This action is taken pursuant to the authority delegated to the Director,
Director
TNS 30FurigayJane-140717-4799266 30FurigayJane
Copyright: | (c) 2014 Targeted News Service |
Wordcount: | 2679 |
Symbility Teams with Van Ameyde in Distribution Deal
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News