FERC signs off on CPV matter related to two Calif. power projects

A Federal Energy Regulatory Commission official on Jan. 8 issued a letter approving an Oct. 31, 2012, filing by CPV Sentinel LLC about a change in control for an existing gas-fired plant in Georgia.

The Oct. 31 filing was a notice of change in status stating that on Aug. 16, 2012, Southeast PowerGen LLC, an affiliate of CPV, acquired 100% of the membership interests in Mid-Georgia Cogen LP, which owns a 323-MW generating facility interconnected to the Georgia Power transmission system and located in the Southern Company Services balancing authority area.

In addition, CPV said that Mariposa Energy LLC, another affiliate of CPV, is developing a 200-MW natural gas-fired generation facility located in the California Independent System Operator market, which was authorized to sell power under market based rates on Feb. 29, 2012.

All of the output from the Mid-Georgia facility and from the Mariposa Facility is fully committed under long-term power purchase agreements. CPV told FERC that its affiliation with Mid-Georgia and Mariposa does not affect the conditions the commission relied upon when granting CPV market-based rate authority.

CPV Sentinel is developing and will own and operate an 800-MW, gas-fired project located in Riverside County, Calif., to be interconnected to transmission facilities owned by Southern California Edison and operated by CAISO. CPV Sentinel said in its Oct. 31 filing that it expects to begin sales of test energy early in 2013.

CPV Sentinel is owned 50% by EFS Sentinel Holdings LLC and 50% by Sentinel Power Holdings.

  • EFS Sentinel Holdings is owned 50% by Aircraft Services Corp. and 50% by Diamond Sentinel LLC. Aircraft Services is 48% owned by General Electric Capital (GECC) and 52% by GE Structured Finance (which in turn is 100% owned by GECC, a wholly owned subsidiary of General Electric (NYSE: GE)).
  • Sentinel Power Holdings is owned 50% by CPV Sentinel Holding LLC, an indirect wholly‐owned subsidiary of Competitive Power Ventures Holdings LLC, and 50% by Diamond Sentinel, a direct wholly‐owned subsidiary of Diamond Generating, an indirect wholly‐owned subsidiary of Mitsubishi Corp.

The existing power plant in Georgia isn’t a power market concern due to its distance from California. As for the more proximate, in-development Mariposa facility, CPV told FERC that all of the capacity of the Mariposa Facility is fully committed under a power purchase agreement with Pacific Gas and Electric (PG&E) for a ten-year term. Mariposa is a wholly‐owned subsidiary of Diamond Generation.

“CPV Sentinel’s affiliation with Mariposa raises no market power concerns,” the company added. “The Commission granted CPV Sentinel’s request for market‐based rate authority based on its demonstration that it passed the pivotal supplier and market share analysis screens (‘Indicative Screens’) in the CAISO market. In its market based rate application, CPV Sentinel demonstrated that it passed (1) the pivotal supplier screen because the capacity of the CPV Sentinel Facility and affiliated capacity (3,476 MW) was significantly less than the Net Uncommitted Supply in the CAISO market (30,755 MW) and (2) the market share screen because its market shares (taking into account affiliated capacity) ranged from 8.63% to 9.07% in the four seasonal periods. CPV Sentinel’s affiliation with Mariposa would not affect the conclusion that CPV Sentinel passes the Indicative Screens. Mariposa is fully committed under a long‐term power purchase agreement with PG&E. Accordingly, there is no change in the uncommitted capacity reported in the Sentinel MBR Application and, therefore, no horizontal market power concerns.”

FERC, by the way, had previously reported that Mariposa Energy LLC’s 200-MW, simple-cycle natural gas-fired project in Alameda County, Calif., came online in October 2012. 

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.