Sustainable Power seeks market authority for California solar projects

67RK 8me LLC asked the Federal Energy Regulatory Commission on April 28 to issue an order that accepts its market-based rate schedule and a tariff under which it will sell electric energy, capacity, and ancillary services at market-based rates.

Applicant owns a solar photovoltaic project with a nameplate capacity rating of 16.7-MW (ac) located in Kern County, California (called the “Redcrest Project”). The Redcrest Project, which is located within the California Independent System Operator (CAISO) balancing authority area in the Southwest region, will self-certify with the commission as a qualifying facility (QF) and as an exempt wholesale generator (EWG). The Redcrest Project is expected to begin commercial operation during the summer of 2015. 

As a QF with a nameplate capacity rating of 16.7 MW (ac), the Redcrest Project is currently exempt from Section 205 of the Federal Power Act and is not required to have a market-based rate schedule on file with the commission to sell electric energy, capacity, and ancillary services at market-based rates.  However, affiliate 65HK 8me LLC is developing a separate 27 MW (ac) solar photovoltaic project that will be located less than one mile from the Redcrest Project. The Hayworth Project is also scheduled to be placed in service during summer 2015.

Because the Redcrest Project and the Hayworth Project will be located less than one mile apart, once the Hayworth Project is placed in service the two will be aggregated for purposes of determining the size of their QFs and the applicant is concerned that the Redcrest Project will no longer be exempt from Section 205 of the FPA. Therefore, in anticipation of the Hayworth Project being placed in service, in conjunction with Hayworth’s application for market-based rate authority filed concurrently with this application, and as a precautionary measure, this application is being filed.

Applicant’s sole business is developing, owning, and operating the Redcrest Project. Applicant is committed to sell the entire output from the Redcrest Project under a 20-year power purchase agreement with Southern California Edison. The Redcrest Project will interconnect with the California ISO-controlled grid at Pacific Gas & Electric‘s (PG&E) Lamont substation. Applicant will own no transmission facilities other than limited interconnection facilities needed to connect the Redcrest Project with the transmission system. 

Applicant is a wholly-owned subsidiary of 8minuteenergy Saferay Holdings 1 LLC, which in turn is a wholly-owned subsidiary of Sustainable Power Group LLC, which itself is a wholly-owned subsidiary of FTP Power LLC.

A company contact is: Sean McBride, General Counsel, Sustainable Power Group LLC, 2749 East Parleys Way, Suite 310, Salt Lake City, UT 84109, phone: (801) 679-3500, fax: (801) 679-3501, smcbride@spower.com.

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.