FERC okays market authority for CPV Biomass Holdings

The Federal Energy Regulatory Commission on May 1 granted a Feb. 2 application by CPV Biomass Holdings LLC, which is taking over a biomass-fired power plant in Minnesota, for market-based rate authority with an accompanying tariff.

The market-based rate tariff provides for the sale of energy, capacity, and ancillary services at market-based rates.

CPV Biomass is the managing member of Benson Power LLC, which owns a 64-MW generation facility located in Benson, Minnesota, within the Midcontinent ISO market. CPV Biomass is a wholly-owned subsidiary of Competitive Power Ventures and is affiliated with several entities that own generation facilities in the PJM Interconnection and Southwest Power Pool markets.

CPV Biomass Holdings LLC on March 24 filed with FERC a notice of self-certification that it is an exempt wholesale generator. CPV Biomass will become the managing member of Benson Power, which, after receiving regulatory approvals and transaction consummation, will own a 64-MW (nameplate) poultry-litter and other biomass-fueled facility located in Benson, Minnesota. The entire output of the facility is sold to Northern States Power d/b/a Xcel Energy under an existing long-term power purchase agreement.

This facility has been owned and leased, respectively by PowerMinn 9000 LLC and Fibrominn LLC, and they, together with Benson and CPV Biomass, had filed an application with FERC requesting authorization for Benson to acquire the facility in a receivership sale.

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.