The Federal Energy Regulatory Commission on July 15 approved market-based rate authority for Novo BioPower LLC, which is buying a 24-MW, biomass-fired project in Arizona.
On June 11, as amended on June 18, 2013, Novo BioPower filed an application for market-based rate authority with an accompanying tariff. The proposed market-based rate tariff provides for the sale of energy, capacity, and ancillary services at market-based rates. Novo BioPower requested waivers commonly granted to similar market-based rate applicants.
The filings were noticed on June 12 and June 19, with no comments filed.
Novo BioPower will own and operate an existing 24-MW biomass facility located in Snowflake, Ariz., within the Arizona Public Service balancing authority area. The entire output of the facility is fully committed under two long-term power purchase agreements with Arizona Public Service and the Salt River Project.
Novo BioPower is 99.9% indirectly owned by three individuals and 0.1% owned by Snowflake Power LLC. Novo BioPower is not affiliated with any entity that owns or controls generation or transmission facilities. Novo BioPower meets all of the Category 1 seller criteria in all regions because it and its affiliates own or control less than 500 MW of generation in aggregate in each region; it and its affiliates do not own or control transmission facilities in any region; it is not affiliated with any franchised public utility; and it does not raise any other vertical market power issues.
