Hermiston seeks authority to sell power from Oregon power plant

Hermiston Generating Co. LP, due to the imminent expiration of a power sales deal with PacifiCorp, on May 27 requested that the Federal Energy Regulatory Commission approve its amended market-based rate tariff effective as of July 1, 2016.

Hermiston owns an undivided 50% interest in an approximately 474-MW facility located near Hermiston, Oregon. Hermiston currently makes cost-based sales of power to PacifiCorp, co-owner of the Hermiston Facility, pursuant to an Restated and Amended Long-Term Power Sales Agreement (LPTSA) dated Dec. 30, 1998. Hermiston’s current market-based rate authorization is limited to sales of energy and capacity (approximately 20 MW) in excess of that provided to PacifiCorp under the LTPSA.

“In light of the upcoming expiration of the LTPSA on July 1, 2016, Hermiston seeks to amend its Tariff to permit sales at market-based rates of the output associated with its 50 percent undivided interest in the Hermiston Facility,” said the May 27 application. “In addition, Hermiston is no longer affiliated with PG&E Company (‘PG&E’). Accordingly, the Code of Conduct governing Hermiston’s relationship with PG&E has been removed from the amended Tariff.”

The Hermiston Facility is an approximately 474-MW multi-unit, natural gas-fired combined cycle plant with automatic generation control and related transmission and interconnection equipment. Hermiston has entered into an agreement with Gridforce Energy Management LLC (GRID) to provide balancing authority area (BAA) services for its portion of the Hermiston Facility.

The Hermiston Facility is located within the service territory of Umatilla Electric Cooperative Association, about 12 miles from the Bonneville Power Association’s (BPA) McNary substation. The entire net electric generating capability of the Hermiston Facility is delivered to Umatilla by means of a 230-kV point of interconnection between the Hermiston Facility and Umatilla. Umatilla in turn delivers the output to BPA at the McNary substation.

PacifiCorp, a public utility, is the owner of the other undivided 50% interest in the Hermiston Facility. Hermiston and PacifiCorp have entered into the LTPSA, as well as an Ownership and Operating Agreement (OA) with respect to the Hermiston Facility. Pursuant to the LTPSA, all of Hermiston’s share of capacity and energy from the Hermiston Facility must be made available to PacifiCorp, and PacifiCorp has dispatch rights with respect to the output of the facility.

Perennial Power LLC owns 99% limited partnership interest in Hermiston, while Perennial HGC Inc. owns the remaining 1% general partnership interest. Perennial Power and Perennial HGC are wholly-owned subsidiaries of Perennial Power Holdings Inc., an independent power company that acquires, develops, and operates electric power plants in North America. Sumitomo Corp., an integrated trading and investment enterprise formed under the laws of Japan, holds a 40% interest in Perennial Holdings. The remaining 60% interest in Perennial Holdings is held by Sumitomo Corporation of America, a New York corporation that is wholly owned by Sumitomo and that is the principal operating subsidiary of Sumitomo in the Americas.

A company contact is: Shigenobu Hamada, President, Perennial Power Holdings Inc., 24 Waterway Avenue, Suite 740, The Woodlands, TX 77380, Tel: (347) 978-1472, shigenobu.hamada@perennialpower.net.

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.