The Federal Energy Regulatory Commission on July 8 accepted an application by Imperial Valley Solar 1 LLC for its in-development 200-MW solar project in California.
On June 7, Imperial Valley Solar 1 (IVS-1) submitted a filing to address the compliance directives in a May 31 commission order. In the July 8 order, FERC accepted IVS-1’s alternate horizontal market power analysis and granted IVS-1 authority to make wholesale sales of electric energy, capacity, and ancillary services at market-based rates in the Southwest region, effective March 22, as requested, without further condition.
On March 21, as amended on April 17, IVS-1 filed an application for market-based rate authority with an accompanying tariff providing for the sale of electric energy, capacity, and ancillary services at market-based rates in the markets administered by the California ISO (CAISO). IVS-1 stated that it will own a 200-MW solar photovoltaic facility located in Imperial County, Calif. IVS-1 said all of the output from the facility will be sold to the San Diego Gas & Electric under a 25-year power purchase agreement.
On May 31, the commission conditionally accepted IVS-1’s market-based rate tariff for filing and suspended the tariff for a nominal period, to become effective March 22, as requested, subject to refund and subject to the outcome of the proceeding. The commission found that IVS-1 satisfied the commission’s requirements for market-based rates regarding vertical market power in the Southwest region. However, in regards to horizontal market power, since IVS-1 relied on a study pending before the commission, the commission stated that it would determine whether IVS-1 passes the indicative screens in the CAISO market upon completion of that pending case.
On June 7, IVS-1 submitted a compliance filing, noting that the conditional acceptance of its tariff and its associated refund obligation have raised significant issues for IVS-1, which would around July 1 commence the production of test power from the facility. Therefore, in order to expedite the removal of the conditional acceptance and refund obligation, IVS-1 proposed an alternative approach to address the commission’s concerns with respect to IVS-1’s initial horizontal market power analysis. Specifically, IVS-1 submitted as its compliance filing a revised horizontal market power analysis that relied on previously-accepted horizontal market power screens submitted by Agua Caliente Solar LLC for the CAISO market.
IVS-1 is a wholly-owned, indirect subsidiary of AES Solar Power LLC. AES Solar is a joint venture between AES Corp. (NYSE: AES) and Riverstone Holdings LLC.
IVS-1 told FERC that its facility will represent the first of four phases of a 600-MW photovoltaic installation.
- Imperial Valley Solar 2 LLC will own the second phase (150 MW of capacity expected to begin commercial operation by Dec. 31, 2015);
- Imperial Valley Solar 3 LLC will own the third phase (150 MW of capacity expected to begin commercial operation by March 31, 2016); and
- Imperial Valley Solar 4 LLC will own the fourth phase (100 MW of capacity expected to begin commercial operation by June 30, 2016).