Power sales deal for AltaGas Pomona expires on Jan. 1

AltaGas Pomona Energy Inc. on Dec. 23 requested that the Federal Energy Regulatory Commission issue an order that accepts its market-based rate schedule under which it will sell electric energy, capacity, and ancillary services at market-based rates.

This applicant company owns and operates a qualifying natural gas-fired cogeneration facility with a capacity of approximately 44.5 MW located in Pomona, California (called the “San Gabriel Facility”). The San Gabriel Facility is interconnected with Southern California Edison (SCE).

The entire output of the plant is fully committed under a PURPA power purchase agreement with SCE until Jan. 1, 2016, when that deal expires. Following expiration of the power purchase agreement, AltaGas Pomona will sell electricity into the California Independent System Operator (CAISO) market on a merchant basis.

Each of applicant’s affiliates in the CAISO market is committed to sell the full output of their generation capacity under long-term power purchase agreements. Applicant’s sole business is owning and operating the San Gabriel Facility.

Applicant is a wholly-owned subsidiary of AltaGas Power Holdings (U.S.) Inc., which is part of Canada-based AltaGas Ltd. AltaGas Ltd. is an energy infrastructure business that directly, and indirectly through its subsidiaries, focuses on natural gas and power assets, and regulated utilities, primarily located throughout Canada, but with some assets in the United States.

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.