Duke Energy Florida on May 27 filed with the Federal Energy Regulatory Commission for an approval related to its planned buy of the gas-fired Osprey power plant of Calpine Corp. (NYSE: CPN).
Duke Energy Florida (DEF) filed with FERC its “Mitigation Tariff for Day-Ahead Cost-Based Energy Sales” from the Osprey Energy Center. This Duke Energy (NYSE: DUK) subsidiary requests that the commission issue an order accepting the Mitigation Tariff to be effective on July 27, which is sixty-one days from the date of this filing.
On March 13, DEF and Osprey Energy Center LLC jointly submitted an application under Section 203 of the Federal Power Act (FPA) and Part 33 of the commission’s regulations for the approvals required for a transaction pursuant to which DEF will acquire the Osprey Energy Center and certain associated assets. The Osprey Energy Center is an approximately 590 MW (summer rating) natural gas-fired generation facility located in the Balancing Authority Area (BAA) of Tampa Electric Co. (TEC) in Auburndale, Florida.
Osprey currently holds a 249-MW firm partial path point-to-point transmission reservation over the TEC system for delivery of a portion of the output of the Osprey Energy Center to the border of the DEF BAA that Osprey will assign to DEF as part of the purchase transaction. Following DEF’s acquisition of the Osprey Energy Center, DEF plans to build transmission network upgrades by 2020 that will directly connect the Osprey Energy Center to DEF’s system so that DEF may deliver the entire output of the Osprey Energy Center into the DEF BAA.
DEF said this mitigation proposal is tailored to address the limited screen failures identified in a market power analysis related to its pending buy of the Osprey plant. DEF would implement this proposal only if the commission conditioned approval of the purchase transaction on DEF offering this mitigation.
The tariff will be in effect for a period commencing on Jan. 2, 2017, and terminating on Dec. 31, 2018, unless DEF consummates its purchase of the Osprey Energy Center on a date other than Jan. 2, 2017, in which case the tariff will be in effect for a period commencing on that consummation date and terminating on a date that is twenty-four months after that consummation date.