Two Arizona gas-fired plants now affiliated with three Calif. gas plants

Arlington Valley LLC, the operator of a gas-fired power plant in Arizona, filed on May 31 at the Federal Energy Regulatory Commission some revisions to its Market-Based Rate Tariff to request clarification of its status as a Category 1 Seller.

Arlington Valley noted that it is a Category 2 Seller in the Southwest Region, but the category status of Arlington Valley in all other regions has not been specified within its Market-Based Rate Tariff. Accordingly, the revisions clarify that Arlington Valley is a Category 1 Seller in regions outside of the Southwest Region.

Arlington Valley owns and operates a 577-MW natural gas-fired combined cycle facility in Maricopa County, Ariz. This plant resides in its own, generation-only Balancing Authority Area (BAA), which is interconnected with the Salt River Project (SRP) BAA. Arlington Valley sells the capacity and energy output of the Arlington Valley Project to an unaffiliated purchaser during the summer months under a long-term tolling agreement. Arlington Valley is authorized to sell power at market-based rates and is an exempt wholesale generator (EWG).

Arlington Valley is affiliated with Griffith Energy LLC, which owns and operates a 570-MW natural gas-fired combined-cycle facility located in Mohave County, Ariz. Griffith Energy made a similar May 31 tariff filing at FERC. The Griffith Project resides in its own, generation-only BAA, which is interconnected with the Western Area Power Administration–Lower Colorado (WALC) BAA. Griffith Energy sells capacity and energy to an unaffiliated purchaser during the summer months under a long-term tolling agreement. Griffith Energy is authorized to sell power at market-based rates and is an EWG.

The most recent triennial market power analysis for Arlington Valley and Griffith Energy was filed with FERC in July 2010. The market power of Arlington Valley and Griffith Energy was evaluated together with the market power of LS Power Marketing LLC, Las Vegas Power Co. LLC, and certain generation owned by Calpine Corp. At the time of the triennial update filing, Arlington Valley and Griffith Energy were wholly-owned subsidiaries of LS Power Group and also were deemed to be affiliated with Calpine, necessitating a market power analysis that considered the relevant generation resources owned by LS Power Group and Calpine.

However, under a transaction approved by FERC, 100% of the ownership interests in Arlington Valley and Griffith Energy were acquired by Star West Generation LLC, which is majority owned indirectly and controlled by Highstar Capital GP IV LP (Highstar Capital).

Subsequently, under a transaction authorized by FERC, Highstar Capital acquired indirect ownership of about 87.5% of GWF Energy Holdings LLC, which indirectly owns 100% of GWF Energy LLC. GWF Energy LLC owns and operates three natural-gas fired facilities located in California:

  • the Tracy Project, a combined-cycle facility with a nameplate capacity of 335 MW that recommenced operations in November 2012 following conversion from a simple-cycle peaker to a combined-cycle facility;
  • the Hanford Project, a peaking facility with a nameplate capacity of 98 MW; and
  • the Henrietta Project, a peaker with a nameplate capacity of 98 MW.

These three generating facilities are interconnected with the transmission system owned by Pacific Gas and Electric (PG&E) and operated by the California Independent System Operator (CAISO), and each is located in the BAA operated by CAISO.

PG&E has entered into two new agreements under which it continues to dispatch and purchase the output of the Hanford and Henrietta projects for ten-year terms that commenced on Jan. 1, 2013, and will terminate on Dec. 31, 2022.

PG&E also has entered into an agreement pursuant to which it will dispatch and purchase the output of the uprated Tracy Project for a period of ten years from its commercial operation date (which occurred on Nov. 1, 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.