Puget Sound Energy (PSE) and Electron Hydro LLC on June 7 asked the Federal Energy Regulatory Commission for prior authorization related to the planned sale of a hydroelectric plant.
They asked for approval for PSE’s disposition of jurisdictional facilities and Electron Hydro’s consolidation of jurisdictional facilities and acquisition of an existing generation facility resulting from the sale to Electron Hydro of PSE’s 25.8-MW (net) Electron hydroelectric facility and associated interconnection equipment located in Pierce County, Wash. The facility is interconnected to PSE’s transmission system.
The transaction will not have any adverse effect on competition, rates, or regulation and will not result in any cross-subsidization concerns, the parties told FERC. Electron Hydro is a joint venture, owned 25% by Electron Management LLC and 75% by Electron Holdings Inc. Electron Holdings is a wholly owned subsidiary of JAVA Hydro Electric Inc., which is in turn a wholly-owned subsidiary of JAVA Holdings Ltd., a company formed under the laws of Alberta, Canada.
Electron Management is majority-owned and controlled by Thom Fischer, owning 90%, with the minority owner, Steve Marmon, owning the remaining 10%. Electron Hydro is concurrently filing with the commission a self-certification as a small power production qualifying facility (QF) and, because the project has a capacity of greater than 20 MW, an application seeking authorization to make wholesale sales of electricity at market-based rates.
Electron Hydro is affiliated with various companies, including Black Creek Hydro Inc., the owner and operator of the 3.8-MW (net) Black Creek Hydroelectric Project located in King County, Wash. The entire output of the Black Creek Project is sold to PSE under a long-term agreement.
JAVA Holdings is an investment company that, in addition to its ownership of JAVA Hydro Electric, holds non-controlling interests in public securities and interest bearing instruments, a real estate company in Canada, and less than 10% interest in Syntaris Power Corp. Ltd., an independent power producer in Canada that currently has no operating facilities.
Under this deal, Electron Hydro will acquire from PSE the transaction assets and consolidate them with its to-be-obtained market-based rate tariff. Upon completion of the transaction, Electron Hydro will own and operate the hydroelectric facility. PSE will in turn purchase the entire output of the facility pursuant to a long-term power purchase agreement.