FERC Issues Order to Mountain Wind Power, LLC Mountain Wind Power II LLC on Order Authorizing Disposition of Jurisdictional Facilities
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ORDER AUTHORIZING DISPOSITION OF JURISDICTIONAL FACILITIES On
Mountain Wind II is an indirect, wholly-owned subsidiary of Capistrano Wind. Mountain Wind II owns and operates a 79.8 MW wind-powered generating facility located in <location value="LU/us.wy.uinta" idsrc="xmltag.org">Uinta County, Wyoming. The facility consists of thirty-eight 2.1 MW wind turbines and other equipment necessary to interconnect the facility to the transmission grid. The facility is interconnected with the transmission system owned and operated by
Capistrano Wind is a
Applicants state that with the exception of SoCal Edison, neither
Applicants state that these facilities are QFs. In addition,
Cook Inlet is an Alaska Native corporation based in
Applicants state that neither Cook Inlet nor its affiliates owns or controls a 10 percent or greater voting interest in entities that have market-based rate authority, own or control electric generation, transmission, or distribution facilities, or own or control other inputs to electric power production in
According to the application, the Transaction consists of the admission of
Applicants state that the Transaction is consistent with the public interest and will not adversely affect competition, rates or regulations. With respect to competition, Applicants state that its' affiliation with
Applicants state that the Transaction raises no vertical market power concerns. Applicants note that the SoCal Edison's transmission facilities are located outside of the relevant markets, are subject to an OATT, and are under the operational control of CAISO.
With respect to rates, Applicants state that the Transaction will have no adverse effect on rates. Applicants state that they will continue to operate under their market-based rate authorization after consummation of the Transaction. Further, Applicants will continue to sell the full net output of their generating facilities pursuant to existing long-term agreements, the terms of which will not be affected by the Transaction.
Applicants add that none of the Applicants has any transmission rates or transmission customers.
With respect to regulation, Applicants state that the Transaction will not affect the manner or extent to which the Commission, any state, or any other federal agency may regulate them. Applicants add that upon completion of the Transaction, Applicants will continue to be public utilities with market-based rates subject to the jurisdiction of the Commission.
Applicants state that the Transaction will have no effect on state commission regulation. Applicants state that the Transaction will not result in cross-subsidization of a non-utility associate company or the pledge or encumbrance of utility assets for the benefit of an associate company. Applicants state that none of Applicants, Capistrano Wind, or
Additionally, Applicants verify that based on the facts and circumstances known to them or that are reasonably foreseeable, the Transaction will not result in, at the time of the 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 services agreements subject to review under Sections 205 and 206 of the FPA.
This filing was noticed on
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 the transaction is based on such examination ability.
Information and/or systems connected to the bulk power 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 databases, 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, NERC or the relevant regional entity may audit compliance with reliability and cybersecurity standards.
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 it must comply with the requirements of Order No.652. In addition, Applicants shall make appropriate filings under section 205 of the FPA, to implement the Transaction.
After consideration, it is concluded that the proposed Transaction is consistent with the public interest and is hereby authorized, subject to the following conditions:
(1) The 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 determination of cost 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 Transaction results in changes in the status or the upstream ownership of Applicants' affiliated Qualifying Facilities, if any, an appropriate filing for recertification pursuant to 18 C.F.R. section 292.207 shall be made;
(6) Applicants shall make appropriate filings under section 205 of the FPA, as necessary, to implement the proposed Transaction;
(7) Applicants must inform the Commission of any changes in circumstances that would reflect a departure from the facts the Commission relied upon in authorizing the Transaction; and
(8) Applicants 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 CT21CT-121107-4097685 61ChengTacorda
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