AltaGas Ripon to supply power to Pacific Gas and Electric under a different deal

AltaGas Ripon Energy Inc., due to the fact its California power plant will now have to sell power on the open market, asked the Federal Energy Regulatory Commission on Feb. 2 to accept a tariff under which it will engage in wholesale sales of electricity, capacity, and ancillary services at market-based rates.

AltaGas Ripon owns and operates a qualifying natural gas-fired cogeneration facility with a capacity of approximately 49.5 MW located in Ripon, San Joaquin County, California. The Ripon Facility is interconnected with Pacific Gas & Electric (PG&E) within the California Independent System Operator (CAISO) balancing authority area (BAA).

Currently, the company operates the Ripon Facility as a qualifying cogeneration facility and is committed to sell the entire output of the Ripon Facility to PG&E under a power purchase agreement that was entered into under the Public Utility Regulatory Policies Act of 1978 (PURPA).  However, beginning in the first quarter of 2015, it will sell the entire output of the Ripon Facility to PG&E under a long-term tolling agreement that will expire on May 31, 2018. Because it will no longer be selling the Ripon Facility’s output to PG&E pursuant to a PURPA contract, AltaGas Ripon submits this application for authorization to make wholesale sales of electric energy, capacity, and ancillary services at market-based rates. Applicant will own no transmission facilities other than limited interconnection facilities needed to connect the Ripon Facility with the transmission system.

AltaGas Ripon is a wholly-owned subsidiary of AltaGas Power Holdings (U.S.) Inc., which is a wholly-owned subsidiary of AltaGas Services (U.S.) Inc. AltaGas Services is a wholly-owned subsidiary of AltaGas Ltd., a Canadian corporation that is publicly traded on the Toronto Stock Exchange with the symbol ALA. AltaGas Ltd. is an energy infrastructure business that directly, and indirectly through its subsidiaries, focuses on natural gas and power assets, and regulated utilities, primarily located throughout Canada, but with some assets in the U.S.

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.