FERC okays Southern Power to sell electricity to affiliate Georgia Power

The Federal Energy Regulatory Commission on Oct. 16 granted Southern Power’s request to make power sales to its affiliate, Georgia Power, under contracts that were worked out before Southern Power bought the related solar projects.

Southern Power, an independent power producer, and Georgia Power, a regulated utility, are both subsidiaries of Southern Co. (NYSE: SO).

On June 18, Southern Power and Georgia Power requested authority for Southern Power to make sales to Georgia Power under the terms of the Pawpaw power purchase agreement (Pawpaw PPA). On Aug, 28, those applicants also requested authority for Southern Power to make sales to Georgia Power under the terms of the Decatur Parkway PPA. The Pawpaw and Decatur Parkway PPAs are the products of a competitive solicitation/request for proposals issued by Georgia Power in 2014 (the Solar RFP).

LS-Pawpaw LLC (LS-Pawpaw) and Decatur Parkway Solar Project LLC were among the winning bidders in that RFP.

  • The Pawpaw PPA was executed in October 2014 by Georgia Power and LS-Pawpaw, an entity then unaffiliated with the applicants. The 30-year Pawpaw PPA provides for the delivery by Southern Power, as successor to LS-Pawpaw, and purchase by Georgia Power of energy and capacity benefits and the related Renewable Energy Credits (RECs) from the 30-MW Pawpaw solar project located in Butler, Georgia, that is currently under construction by Southern Power. On May 29, 2015, Southern Power acquired the upstream ownership of LS-Pawpaw from Longview Solar LLC
  • The Decatur Parkway PPA was also executed in October 2014 between Georgia Power and Decatur Parkway, an entity then unaffiliated with the applicants. The 25-year Decatur Parkway PPA provides for the delivery by Southern Power, as successor to Decatur Parkway, and purchase by Georgia Power of energy and capacity benefits and RECs from the 80-MW Decatur Parkway solar project located in Decatur County, Georgia, that is currently under construction by Southern Power. On February 19, 2015, Southern Power acquired the upstream ownership of Decatur Parkway from Tradewind Energy LLC.

“[T]he Commission concludes that the competitive solicitation described by Applicants satisfies the Commission’s concerns regarding affiliate abuse,” said the Oct. 16 FERC approval. “Accordingly, the Commission will grant Applicants’ requests for authorization for Southern Power to make affiliate sales to Georgia Power pursuant to the Pawpaw and Decatur Parkway PPAs, effective August 18, 2015, and October 12, 2015, respectively, as requested.”

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.