FERC approves tariff for Arlington Valley solar project in Arizona

The Federal Energy Regulatory Commission on July 5 conditionally accepted and suspended, for a nominal period, a proposed tariff filed by Arlington Valley Solar Energy II LLC for a partially-completed, 125-MW solar project in Arizona.

The proposed tariff would permit Arlington Valley to make wholesale sales of electric energy, capacity, and ancillary services at market-based rates in the Southwest region. The commission denied Arlington Valley’s request for waiver of prior notice and grants Arlington Valley’s request for other waivers commonly granted to market-based rate sellers.

FERC also found that Arlington Valley meets the criteria for a Category 2 seller in the Southwest region. Arlington Valley must file an updated market power analysis for the Southwest region in compliance with a regional reporting schedule .

On May 6, Arlington Valley 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 Southwest region.

Arlington Valley is an affiliate of LS Power Development LLC, which develops, owns, and operates independent power projects in the United States. GE Energy Financial Services is participating in Arlington Valley as a tax equity investor.

Arlington Valley is constructing a 125-MW solar photovoltaic facility located in Maricopa County, Ariz., with full commercial operations expected in December 2013. The entire output of the facility will be sold to San Diego Gas & Electric under a long-term power purchase agreement.

Arlington Valley told FERC that it had inadvertently conducted preliminary, pre- commercial testing of an initial, less than 20 MW, portion of the facility, beginning on April 9, without realizing that it was required to have a market-based rate tariff in effect prior to such testing. Arlington Valley explained that, upon discovering its oversight on April 29, it acted promptly and within an accelerated timeframe to prepare its market-based rate application and submit it to the commission.

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.