FERC accepts control filing for Kansas wind projects of BP

A Federal Energy Regulatory Commission official in a Dec. 11 letter accepted a Sept. 4 notice filed by BP Energy Co., Flat Ridge 2 Wind Energy LLC and Flat Ridge Wind Energy LLC that Flat Ridge 2 will own and operate 419-MW and 51-MW wind facilities located in the Westar Energy balancing authority area in Kansas.

“You state that the entire output of both facilities will be sold to unaffiliated power purchasers under long-term contracts and therefore operation of these facilities does not affect the conditions the Commission relied upon when granting market-based rate authority to the BP Companies,” said the letter from FERC official Steve Rodgers. “You also state that commencement of operation of the 419 MW and 51 MW generating facilities will cause the BP Companies to collectively own or control more than 500 MW of generating capacity in the Southwest Power Pool (SPP) region resulting in the BP Companies becoming Category 2 sellers in the SPP region.”

The Dec. 11 action by Rodgers 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; can’t be deemed as recognition of any claimed contractual right or obligation affecting or relating to such service or rate; and 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).

BP Energy and Flat Ridge Wind are each an indirect, wholly-owned subsidiary of BP America, which is an indirect, wholly-owned subsidiary of BP plc, a company with its international headquarters in London, UK, and its U.S. headquarters in Houston. Flat Ridge 2 is a direct, wholly-owned subsidiary of Flat Ridge 2 Wind Holdings LLC. FR2 Wind Holdings is owned 50% indirectly by BP and 50% indirectly by Sempra Energy, a public utility holding company based in San Diego, Calif.

“The Flat Ridge 2 Facility currently is projected to commence operations in September 2012,” said the Sept. 5 filing by the companies. “[T]he entire output of the Flat Ridge 2 Wind Facility is committed to unaffiliated power purchasers under long-term contracts. The Flat Ridge 2 South Facility currently is projected to commence operations in November 2012. The Flat Ridge 2 South Facility was not described in the Flat Ridge 2 MBR Application because plans for the Flat Ridge 2 South Facility were not yet complete at the time the application was filed. The entire output of the Flat Ridge 2 South Facility is committed to an unaffiliated power purchaser under a long-term power purchase agreement with a 20-year term. The commencement of operations of the Flat Ridge 2 Facility and the Flat Ridge 2 South Facility is non-material to and does not affect the Sellers’ eligibility for market-based rate authority.”

Flat Ridge 2 also will own an approximately 42-mile, 345 kV line that will be solely utilized by Flat Ridge 2 as a generator interconnection facility for the Flat Ridge 2 and the Flat Ridge 2 South facilities.

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.