The Federal Energy Regulatory Commission on Jan. 15 approved market-based rate authority for Covanta Fairfax Inc., which now needs to sell power on the open market due to the expiration in May of this year of its long-term power supply contract with Virginia Electric and Power d/b/a Dominion Virginia Power.
Covanta Fairfax on Dec. 5 had sought needed approvals from FERC related to market-based rate authority. Covanta Fairfax is a wholly-owned subsidiary of Covanta Energy LLC, which is a wholly-owned subsidiary of Covanta Holding Corp. Covanta Holding is engaged in the energy and insurance businesses through its subsidiaries. Covanta Holding’s indirect energy subsidiaries are engaged in the business of developing, constructing, owning and/or operating projects for the conversion of waste to energy and independent power production both domestically and abroad and providing related infrastructure services.
Covanta Fairfax is engaged in the ownership and operation of the Fairfax (I-95) Energy/Resource Recovery Facility, a 108-MW municipal solid waste-fired facility (called the “Fairfax Facility”) located in Lorton, Virginia, just south of Washington DC, within the PJM Interconnection balancing authority area. The Fairfax Facility is also located within the AP South submarket of the PJM BAA. Covanta Fairfax is an exempt wholesale generator (EWG).
“Covanta Fairfax currently sells the entire output of the Fairfax Facility to Virginia Electric and Power Company d/b/a Dominion Virginia Power (‘Dominion’) pursuant to a Power Purchase and Operating Agreement (‘PPOA’)” said the Dec. 5 filing. “The PPOA with Dominion is scheduled to expire, pursuant to its own terms, on May 31, 2015. In order to facilitate Covanta Fairfax’s future participation in the PJM market, Covanta Fairfax hereby submits for filing the Proposed Market-Based Rate Tariff.”
A company contact is: Kirk J. Bily, Covanta Energy Corporation, Vice President & Deputy General Counsel, 445 South Street, Morristown, NJ 07960, 862-345-5045, firstname.lastname@example.org.