Sempra affiliate seeks FERC approval related to Mexico wind project

Energia Sierra Juarez U.S. LLC (ESJ US) and InterGen N.V. on April 22 requested from the Federal Energy Regulatory Commission all authorizations necessary for the acquisition of 50% of the membership interests in ESJ US by IG Sierra Juárez S. de R.L. de C.V. (IG Sierra Juárez), a newly-formed, wholly-owned indirect subsidiary of InterGen.

ESJ US is a marketing entity that will sell power from a wind generation facility (the “ESJ Facility”) under development in northern Mexico by its affiliate, Energia Sierra Juárez, S. de R.L. de C.V. (ESJ Mexico). ESJ US will acquire title to the output of the ESJ Facility in Mexico, and resell the power to its regulated utility affiliate, San Diego Gas & Electric (SDG&E), under a long-term wholesale contract. ESJ US does not currently own or control any generation or transmission facilities.

InterGen is a global power generation company whose only jurisdictional assets in the U.S. are a six-mile segment of transmission tie-line (and an associated interconnection services agreement) owned by its Baja California Power (Baja Power) subsidiary. That short segment of line (the “Baja Line”) is used to deliver power from InterGen’s affiliated generating facilities in Mexicali, Mexico, to a delivery point on the SDG&E system in the California Independent System Operator Balancing Authority Area (CAISO BAA) market.

InterGen is also affiliated through one of its parent companies with several merchant generating plants, most of the output of which is fully committed under long-term power sale agreements and is thus considered to be under the control of unaffiliated third-parties.

ESJ US is an indirect, wholly-owned subsidiary of Sempra Mexico, which in turn is a subsidiary controlled by Sempra Energy (NYSE: SRE), a public utility holding company based in San Diego, Calif.

ESJ US itself does not, and will not, own or operate electric generation or transmission facilities. ESJ US will sell energy, capacity and/or ancillary services into the CAISO balancing area from the ESJ Facility under development in Mexico. Upon completion, the ESJ Facility will be capable of producing up to 156 MW. ESJ US has received blanket authority to sell energy, capacity and/or ancillary services at market-based rates.

ESJ US’s affiliate, ESJ Mexico, is developing the ESJ Facility, to be situated south of the U.S.-Mexico border near the town of La Rumorosa, Baja California Norte. The generator interconnection facilities located in Mexico will consist of a collector substation located approximately two miles south of the U.S.-Mexico border, and associated interconnection facilities consisting primarily of two 230-kV generation tie-lines extending two miles northward from the collector substation to the U.S.-Mexico border.

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.