Chubu TT, with Japanese ownership, plans power marketing in the U.S. and Canada

Chubu TT Energy Management, a power marketer, told the Federal Energy Regulatory Commission on Feb. 12 that while it is affiliated with several Canadian and U.S. power plants and power plant projects, it has no market power issues in any of the affected regions.

Chubu TT asked the commission to accept its proposed market-based rate tariff, to be effective April 15, and to otherwise grant Chubu TT the authority to sell energy, capacity and ancillary services as a Category 2 Seller in the Northeast region, and as a Category 1 Seller in the Central region.

This is a Canadian Corporation with its principal place of business in Brampton, Ontario, Canada. Chubu TT intends to trade and market electricity in the United States and Canada and is in the process of becoming a licensed competitive electricity provider in Ontario. Chubu TT currently has pending electricity export authorization applications before the U.S. Department of Energy and the National Energy Board of Canada.

Chubu TT said it plans to trade and market electricity in northeastern North America; specifically, in the regions managed by the Ontario Independent Electricity System Operator (IESO), Midcontinent Independent System Operator (MISO), PJM Interconnection, New York Independent System Operator (NYISO) and ISO New England (ISO-NE).

The company is a joint venture between Chubu Electric Power and Toyota Tsusho Corp. In addition to each having a 50% ownership stake in Chubu TT, Chubu Electric and Toyota Tsusho each have a 50% indirect ownership stake in the Goreway Power Station, an 875-MW combined cycle gas turbine plant located near Toronto, Ontario. Over 90% of Goreway’s capacity is committed to the IESO under a 20-year Power Purchase Agreement.

Chubu Electric is a Japanese electric utility, and is Japan’s third-largest power company, as measured by power generation capacity, electric generation sold, operating revenues and total assets. Chubu Electric is active worldwide in the power generation business, including in the United States through its wholly-owned subsidiary, Chubu Electric Power Company U.S.A. Inc. Accordingly, Chubu Electric has indirect ownership interests in five generating facilities throughout the United States. These interests include:

  • a 17.5% stake in the 1,220 MW natural gas-fired, combined-cycle Kiamichi Generating Station in Pittsburg, Oklahoma;
  • a 17.5% stake in the 885 MW natural gas-fired, combined-cycle Tenaska Central Alabama Generating Station in Autauga County, Alabama;
  • an 11.1% stake in the 845 MW natural gas-fired, combined cycle Gateway Generating Station in Rusk County, Texas;
  • a 17.5% stake in the 945 MW natural gas-fired Georgia Generating Station in Heard County, Georgia; and
  • a 17.5% in the 926 MW natural gas- and No. 2 fuel oil-fired Virginia Generating Station in Fluvanna County, Virginia.

Toyota Tsusho is a multinational trading company, organized under the laws of Japan. Its largest shareholder is Toyota Motor Corp., which owns an approximately 21% interest in Toyota Tsusho. Through its wholly-owned subsidiary, Toyota Tsusho Power USA Inc. (TT-USA), Toyota Tsusho has indirect ownership stakes in various power generation assets in the United States. These interests include:

  • a 50% stake in the 440 MW Oyster Creek Cogeneration Power Plant, a natural gas-fired combined cycle facility, located in Freeport, Texas;
  • a 31% stake in the proposed 785 MW Woodbridge Energy Center, a natural gas-fired combined cycle facility, located in Woodbridge, New Jersey;
  • a 25% stake in the proposed 726 MW St. Charles Energy Center, a natural gas-fired combined cycle facility, located in Charles County, Maryland; and
  • a 12.5% stake in the proposed 716 MW Salem Harbor Generating station, a natural gas-fired combined cycle facility, located in Salem, Massachusetts.

Toyota Tsusho also has a 60% stake in Eurus Energy Holdings Corp., which, through its wholly-owned subsidiary, Eurus Energy America Corp. (EEA), is affiliated with several renewable energy generating assets in the United States.

Except for the generation assets owned by CPV Shore, CPV Maryland, and Crescent Ridge LLC, all of the energy assets affiliated with EEA are located in the Northwest, Southwest and Southwest Power Pool (SPP) regions. Within the Northeast region, Crescent Ridge owns and operates an approximately 54.5 MW wind project located in Bureau County, Illinois, in the PJM Balancing Authority Area (BAA). EEA does not own or control, directly or indirectly, any generation, transmission, or inputs to electric power production in the Central region.

Chubu TT requests authorization to sell electric energy, capacity, and ancillary services at market-based rates in the markets operated by MISO (Central region), and ISO-NE, NYISO and PJM (Northeast region), pursuant to the attached Market-Based Rate Tariff. It noted that the total uncommitted capacity of Chubu TT’s affiliates is approximately 716 MW in the ISO-NE market and 2,576 MW in the PJM market. In contrast, the net uncommitted supply in ISO-NE is 6,695 MW and in PJM is 47,611 MW. The company said it will have no undue market power in any of the regions where it plans to market electricity.

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.