Duke companies seek market-based authority for 50 MW of solar capacity

Duke Energy (NYSE: DUK) affiliates Seville Solar One LLC, Tallbear Seville LLC and Seville Solar Two LLC on Oct. 13 asked the Federal Energy Regulatory Commission for approval to sell energy, capacity, and ancillary services at market-based rates.

These companies have companion solar projects in California. 

Seville Solar One LLC 

Seville Solar One is an indirect subsidiary of Duke Energy and has exempt wholesale generator status and has self-certified for qualifying facility (QF) status. Seville Solar One is engaged in the development and construction of a 20-MW (nameplate) solar facility located in Imperial County, California, within the balancing authority area (BAA) of the Imperial Irrigation District (IID). The Seville Solar One Facility will consist of First Solar thin film solar modules interconnected by a series of utility grade transmission facilities, and will interconnect to IID.

Seville Solar One will be leasing this facility to Tallbear Seville LLC. The Lease Agreement has a 20-year term. Tallbear Seville will sell the entire electrical output of the Seville Solar One Facility under a Power Purchase Agreement with San Diego Gas & Electric (SDG&E).

Seville Solar Two LLC

Seville Solar Two is also an indirect subsidiary of Duke Energy, and has applied for exempt wholesale generator status and has self-certified for QF status for its generating facility. Seville Solar Two is engaged in the development and construction of a 30 MW (nameplate) solar facility located in Imperial County within the IID BAA. The Seville Solar Two facility will consist of First Solar thin film solar modules interconnected by a series of utility grade transmission facilities, and will interconnect to IID. The Seville Solar Two Facility is located within one mile of the Seville Solar One Facility.

Seville Solar Two is party to a Power Purchase Agreement with IID, dated May 27, 2014, as amended. Under the agreement, Seville Solar Two will sell 100% of the net electric energy produced by the Seville Solar Two Facility, as well as associated environmental attributes and ancillary services to IID. The Seville Solar Two-IID PPA has a term of 25 years from June 1, 2016.

Tallbear Seville LLC

Tallbear Seville is a partially-owned indirect subsidiary of Duke Energy. Tallbear Seville has exempt wholesale generator status. Tallbear Seville has leased the Seville Solar One Facility from Seville Solar One and will be selling the power generated by the facility to SDG&E under a 20-year PPA.

Seville Solar Investments owns 49% of the membership interests in Tallbear Seville. Seville Solar Investments is in turn an indirect, wholly-owned subsidiary of Duke Energy. The remaining 51% interest in Tallbear Seville is owned by Richard Tallbear Westerman. Westerman is an entrepreneur who also owns certain hospitality- and energy-related companies.

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.