FERC approves market-based authority for Allegany Generating

Allegany Generating Station LLC was approved on Sept. 25 by the Federal Energy Regulatory Commission on an application for market-based rate authority with an accompanying tariff.

Allegany Generating Station, a new company, filed with FERC on Aug. 21 a notice of self-certification as an exempt wholesale generator related to an about-to-be acquired power plant in New York. It filed for the market-based rate authority on Aug. 20.

Allegany was formed in 2013 for the purpose of consummating a transaction in which Allegany will acquire from Rochester Gas & Electric (RG&E) a 59 MW (summer rating) gas-fired combined-cycle plant located in Hume, N.Y. The Allegany facility is interconnected to the transmission system owned by RG&E. Upon completion of the transaction, Allegany Generating Station will operate the Allegany facility and will continue to sell its output into the New York ISO (NYISO) market.

Allegany is a direct, wholly-owned subsidiary of Alliance Energy New York LLC (AENY). AENY is in turn wholly-owned by Alliance Energy Group LLC (AEG). AEG is engaged in electric power generation, natural gas exploration, production and transportation, and energy technology research into various forms of renewable fuels such as biodiesel and hydropower. AEG is wholly-owned by an individual, Samuel Nappi.

FERC on Aug. 20 had approved the sale of two gas-fired power plants in New York state to affiliates of Alliance Energy Group.

On July 22, Carthage Energy LLC and Allegany Generating Station had filed a joint application for authorization for the disposition of jurisdictional facilities resulting from: the transfer of 100% of the ownership interests in Carthage from Cayuga Energy Inc. to Alliance Energy New York (AENY); and Allegany’s acquisition of the Allegany generating station and related assets from RG&E.

Carthage owns a 62.9 MW dual fuel (gas/oil) combined-cycle cogen located in Carthage, N.Y. The Carthage facility is interconnected to the transmission system owned by Niagara Mohawk Power d/b/a National Grid and under the operational control of the New York ISO. Carthage is owned by Cayuga, which in turn, is a subsidiary of Iberdrola USA Group LLC, which is a subsidiary of Iberdrola USA Inc.

RG&E is a direct, wholly-owned subsidiary of RGS Energy Group, which in turn, is a direct, wholly-owned subsidiary of Iberdrola USA. RG&E owns the Allegany facility.

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.