Duke Energy units report on affiliates with new market-based rate authority

Various wholly-owned subsidiaries and partially-owned affiliates of Duke Energy (NYSE: DUK) with market-based rate authority (MBR) on Jan 15 filed with the Federal Energy Regulatory Commission a notification of a change in status in connection with the affiliation with entities that recently obtained MBR pricing authority.

The new entities are:

  • On Dec. 16, 2015, the commission issued an unpublished letter order accepting the MBR tariffs of Seville Solar One LLC, Seville Solar Two LLC and Tallbear Seville LLC. Seville Solar One owns a 20-MW solar facility and Seville Solar Two owns a 30-MW solar facility, both in the Imperial Irrigation District (IID) balancing authority area. Tallbear leases the facility owned by Seville Solar One. Seville Solar One and Seville Solar Two are wholly-owned by Duke Energy, and Tallbear is owned by Duke Energy and an individual. Seville Solar One will lease the facility to Tallbear under a 20-year lease, and Tallbear will sell the entire output of the facility to San Diego Gas & Electric (SDG&E) under a 20-year power purchase agreement. Seville Solar Two will sell 100% of the output to IID under a power purchase agreement with a 25-year term that begins June 1, 2016.
  • On Dec. 21, 2015, the commission issued an unpublished letter order accepting the MBR tariff of Conetoe II Solar LLC. Conetoe owns and operates an 80-MW solar photovoltaic facility in North Carolina in the AP South submarket of the PJM Interconnection market. Conetoe is an indirect wholly-owned subsidiary of Duke Energy. Conetoe has entered into a long term power purchase agreement with Corning Inc. for the sale of 50 MW of the output of the facility, and began selling to Corning on Dec. 31, 2015. Conetoe expects to enter into a long-term power purchase agreement for the remaining 30 MW. Until that agreement is finalized, the uncontracted 30 MW is being sold into the PJM day ahead and real time spot markets.
  • On Jan. 6, the commission issued an unpublished letter order accepting the MBR tariff of Colonial Eagle Solar LLC. Colonial Eagle owns and operates three separate solar facilities in North Carolina, in the AP South submarket of the PJM market: the Kelford facility, the Pasquotank facility, and the Whitakers facility. The Pasquotank Facility began commercial operations in December 2014 and has a maximum capacity of 19.9 MW. The Whitakers Facility began commercial operations in December 2015 and has a maximum capacity of 12 MW. The Kelford Facility ultimately will have a capacity of 21.5 MW, and began commercial operations in December 2015. The Kelford, Pasquotank, and Whitaker Facilities are subject to long-term power purchase agreements with the George Washington University, George Washington University Hospital, and American University. An additional 1.5 MW from the Kelford Facility is being sold into the PJM day ahead and real time spot markets, although Colonial Eagle expects that the 1.5 MW ultimately will be subject to a long-term arrangement.
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.