FERC Issues Order to Plum Point Energy Associates, LLC, and Plum Point Services Company, LLC on Updated Market Power Analysis in Compliance with…

FERC Issues Order to Plum Point Energy Associates, LLC, and Plum Point Services Company, LLC on Updated Market Power Analysis in Compliance with Order No. 697

WASHINGTON, June 7 -- The U.S. Department of Energy'sFederal Energy Regulatory Commission issued the text of the following delegated order:

In Reply Refer To:

Plum Point Energy Associates, LLC, and

Plum Point Services Company, LLC

Docket Nos. ER10-2615-002, and ER11-2335-003

Mr. Mark C. Williams

Attorney for Plum Point Energy Associates, LLC and

Plum Point Services Company, LLC

Bingham McCutchen LLP

2020 K Street N.W., Suite 1100

Washington, D.C. 20006

Reference: Updated Market Power Analysis in Compliance with Order No. 697

Dear Mr. Williams:

On December 29, 2011, you filed on behalf of Plum Point Energy Associates, LLC (Plum Point Associates) and Plum Point Services Company, LLC (Plum Point Services and collectively with Plum Point Associates, Plum Point Companies) an updated market power analysis for the Southeast region in compliance with the regional reporting schedule adopted in Order No. 697 and pursuant to the Commission's orders granting the Plum Point Companies authority to sell electric energy and capacity at market-based rates.

Your filing was noticed on January 3, 2012, with comments, protests or interventions due on or before February 27, 2012. 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 dockets is accepted for filing.

You state that Plum Point Associates owns an interest in the Plum Point Energy Station, a generation facility with 665 megawatts of generation capacity located in Arkansas, in the Entergy Services, Inc. (Entergy) balancing authority area. You further state that Plum Point Associates is owned by EIF Plum Point, LLC (EIF Plum Point) and John Hancock Life Insurance Company. You also state that Plum Point Services, which is wholly-owned by EIF Plum Point, is the asset manager of the Plum Point Energy Station. You represent that the Plum Point Companies are not affiliated with any other generation facilities in the Entergy balancing authority area. You further represent that neither the Plum Point Companies nor their affiliates own, operate or control any transmission facilities.

Finally, you affirmatively state that the Plum Point Companies 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 the Plum Point Companies rely on the Alabama Power Company market power analysis to demonstrate that the Plum Point Companies pass both the pivotal supplier and the wholesale market share screens for the Entergy balancing authority areas, when the Commission-accepted Simultaneous Transmission Import Limit (SIL) study results are taken into consideration for the Entergy balancing authority area. Accordingly, based on your representations and subject to the Commission's determinations in Alabama Power Company's pending proceeding, the Plum Point Companies' submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power.

Based on your representations, the Plum Point Companies' submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power.

The Plum Point Companies must file electronically with the Commission Electric Quarterly Reports. The Plum Point Companies 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.

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 applicant(s).

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

Sincerely,

Steve P. Rodgers, Director

Division of Electric Power

Regulation - West

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