Two CPV affiliates seek FERC approvals for gas-fired projects

CPV Shore LLC on Nov. 8 asked the Federal Energy Regulatory Commission for approvals related to its gas-fired, 725-MW power project planned for a site in New Jersey.

Among other things, CPV Shore asked FERC for authorization to make market-based wholesale sales of energy, capacity, and ancillary services under a market-based rate tariff.

“CPV Shore is a Delaware limited liability company that is developing and will construct, own and operate a 725 MW (nameplate) combined-cycle electric generating facility (‘CPV Shore Facility’) that will be interconnected to transmission facilities owned by Jersey Central Power & Light Company (‘JCP&L’) and operated by PJM Interconnection, L.L.C. (‘PJM’),” said the application. “CPV Shore also will construct and own limited interconnection facilities required to deliver CPV Shore’s wholesale power from the CPV Shore Facility to PJM.”

CPV Shore said it participated in PJM’s 2012 forward capacity auction (Reliability Pricing Model or RPM) and cleared 661 MW of capacity for delivery in the 2015/2016 delivery year. CPV Shore also participated in, and was one of three respondents selected, in a state of New Jersey solicitation conducted under the New Jersey Long-Term Capacity Pilot Program and was selected, along with two other respondents, to enter into Standard Offer Capacity Agreements (SOCAs) with four Electric Distribution Companies (EDCs) with a term of fifteen years. The SOCA does not provide for sales of capacity or energy, the company noted. Instead, the SOCA is a purely financial arrangement.

CPV Shore will make payments to the EDCs when the market clearing price for capacity and energy in the PJM markets exceed thresholds set out in the SOCA and will receive payments from the EDCs when such clearing prices are below the contract thresholds.

CPV Shore is a wholly owned indirect subsidiary of Competitive Power Ventures Holdings LLC (CPV). CPV, through its subsidiaries, develops, owns, and manages natural gas-fired and renewable generation facilities throughout North America. Warburg Pincus Private Equity IX LP and Warburg Pincus Equity Partners Liquidating Trust (collectively Warburg) have a collective ownership interest of 95.2% of the voting shares in CPV. Individuals own the remaining ownership interests in CPV, but none own 10% or more of the voting shares in CPV.

The CPV Shore application noted that an affiliate, CPV Maryland LLC, is developing a 725 MW (nameplate) combined-cycle facility to be located in Charles County, Md. That plant will be interconnected to transmission facilities owned by Potomac Electric Power Co. (PEPCO) and operated by PJM. CPV Maryland also will construct and own limited interconnection facilities required to deliver CPV Maryland’s wholesale power sales from the CPV Maryland Facility to PJM.

CPV Maryland filed a similar Nov. 8 tariff application with FERC. CPV Maryland said it participated in PJM’s 2012 forward capacity auction and cleared 661 MW of capacity for delivery in the 2015/2016 delivery year. CPV Maryland also participated in a solicitation from the Maryland Public Service Commission under which CPV Maryland was selected to enter into a Contract for Differences (CFD) with three Maryland Electric Distribution Companies (EDCs) with a term of twenty years.

The CFD does not provide for sales of capacity or energy. Instead, the CFD is a purely financial arrangement. CPV Maryland will make payments to the EDCs when the market clearing price for capacity and energy in the PJM markets exceed thresholds set forth in the CFD and will receive payments from the EDCs when such clearing prices are below the contract thresholds.

CPV Maryland is owned: 50% by CPV Maryland Holding Co. LLC, which is 100% owned indirectly by CPV; and 50% by Diamond St. Charles LLC, which is 95% owned directly by Diamond Generating Corp., a wholly owned subsidiary of Mitsubishi Corporation (Americas) (MCA), and 5% owned indirectly by MIC Nebraska Inc., also a subsidiary of MCA. MCA is a wholly owned subsidiary of Japan’s Mitsubishi Corp.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.