FERC signs off on market power changes for ArcLight affiliates

The Federal Energy Regulatory Commission on June 2 approved an adjustment in the market power analysis for several ArcLight Capital Partners LLC affiliates related to a recent ArcLight buy of a hydropower company and a gas-fired power plant.

On April 24, the companies filed with FERC a notice of change in status stating that on March 25, their affiliate ArcLight Energy Partners Fund V LP (ArcLight Fund V) acquired 100% of the equity ownership interests in Miller Hydro Group Inc., which owns a 19.4-MW generation facility located within the ISO New England market. Also, on April 9, ArcLight Fund V acquired 100% of the membership interests in Mesquite Power LLC, which owns a 691.6-MW generation facility located within the Arizona Public Service balancing authority area.

The ArcLight companies said these new affiliations do not affect the conditions the commission relied upon when granting them market-based rate authority. In the June 2 order, FERC agreed.

Miller Hydro Group owns a 19.4-MW (nameplate) hydroelectric facility located in Maine (called the Worumbo Project). Following the transaction, Miller Hydro Group changed its name to Brown Bear II Hydro Inc., effective March 27. The Worumbo Project is a qualifying small power production facility under the Public Utility Regulatory Policies Act of 1978, as amended. It is interconnected to the transmission system owned by Central Maine Power and operated by ISO-NE. The entire output of the Worumbo Project is ultimately sold to municipal entities under long-term power purchase agreements.

Mesquite Power owns the 691.6-MW (nameplate) Block 2 of the Mesquite Generating Station located in Arizona. Mesquite Power is an exempt wholesale generator under the Public Utility Holding Company Act of 2005. Block 2 of the Mesquite Generating Station is interconnected to the Hassayampa Switchyard through shared interconnection facilities that are jointly owned as tenants-in-common by Mesquite Power, Mesquite Solar 1 LLC, SEP II LLC and the Salt River Project. Under a long-term power purchase agreement, Mesquite Power sells 271 MW from Block 2 to a group of unaffiliated wholesale purchasers, which are 21 members of the Southwest Public Power Resources Group, an association of 40 not-for-profit utilities in Arizona and southern Nevada. Mesquite Power sells the remaining output from Block 2 on a merchant basis into the wholesale market.

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.