FERC approves rate authority for Novo BioPower

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.

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.