New Ormat geothermal company seeks market rate authority from FERC

Heber Geothermal Co. LLC (HGC) on Oct. 21 requested that the Federal Energy Regulatory Commission accept a market-based rate tariff under which HGC will sell electric energy, capacity, and ancillary services at market-based rates.

HGC is a recently-created, wholly-owned indirect subsidiary of Ormat Technologies, a publicly-traded company. Ormat designs, develops, manufactures, constructs, owns, and operates geothermal and recovered energy-based power plants around the world.

HGC was established by Ormat for the sole and exclusive purpose of owning and operating two qualifying small power production facilities (QFs): the Heber 1 facility and the Gould 1 facility, located near Heber, California. Until HGC’s establishment, the facilities were previously owned and operated by another subsidiary of Ormat. In total, the two QFs have a maximum gross power production capacity of 62.5 MW.

The plants operate as variable energy resources. As such, the nameplate capacities do not reflect the actual net capacity after the plants supply their own Station Power and Fuel Delivery System. In addition, net generation varies over time depending primarily on the ambient weather conditions. Due to the factors mentioned above, the expected yearly average net capacity of the plants is 41 MW-42 MW and the maximum net capacity in extreme cold weather is estimated to be approximately 52 MW. The plants are located in the balancing authority area of the Imperial Irrigation District (IID) and interconnect to transmission facilities owned by IID.

To date, sales from both QFs have been made pursuant to a single power purchase agreement. HGC anticipates commencing sales under a new power purchase agreement beginning on Dec. 16, 2015. Other than Heber 1 and Gould 1, HGC does not own or control any other electric generation facilities in the United States, nor does it own, operate, or control any transmission facilities in the United States (other than limited interconnection facilities). 

A company contact is: Steven Henricksen, Asset Manager, Ormat Nevada Inc., 6225 Neil Road, Reno, NV 89511, Telephone: (775) 356-902, Extension: 32319, shenricksen@ormat.com.

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.