Ormat creates new company to control geothermal capacity

Mammoth Three LLC, which is a new unit of Ormat Technologies, on Sept. 20 told the Federal Energy Regulatory Commission that it is taking over an Ormat geothermal facility.

Mammoth Three asked the commission to: accept a tariff under which Mammoth Three will sell electric energy, capacity, and ancillary services at market-based rates; find that Mammoth Three qualifies as a Category 1 seller in all regions; grant other waivers and blanket authorizations generally granted to wholesale sellers; and waive the prior notice requirements in order to permit the requested authorizations and waivers to become effective as of Nov. 15, 2013.

Mammoth Three is a recently-created, wholly-owned indirect subsidiary of Ormat Technologies, a publicly-traded company. Ormat is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. Mammoth Three was formed by Ormat to acquire full control, but not ownership, of one of three qualifying small power production facilities (QF) that are currently owned by another Ormat subsidiary, Mammoth-Pacific LP, near Mammoth Lakes, Calif.

In total, the three QFs have a maximum gross power production capacity of approximately 40 MW and a net power production capacity (which excludes station power and certain losses) of approximately 29 MW.

To date, all sales made from the QF over which Mammoth Three is to acquire control have been made by Mammoth-Pacific pursuant to power purchase agreements that were executed prior to March 2006. As a result, all such sales qualified for a Section 205 exemption. Upon acquiring control of the QF, Mammoth Three anticipates commencing sales under a new power purchase agreement that does not qualify for that exemption beginning on Nov. 15, 2013. Accordingly, Mammoth Three is filing the instant petition in order to secure the authorization necessary to make such sales at market-based rates.

All of the generation capacity that will be owned or controlled by Mammoth Three is located in the balancing authority area of the California Independent System Operator (CAISO). Several affiliates of Mammoth Three also own or control generation resources within the CAISO balancing authority area.

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.