Algonquin files for market authority for 20-MW solar project in California

Algonquin SKIC 20 Solar LLC on July 8 requested that the Federal Energy Regulatory Commission accept for filing its Market-Based Rate Tariff and also grant a blanket authorization to make wholesale sales of electric energy, capacity, and ancillary services at market-based rates.

The company is developing a 20-MW project in the California Independent System Operator region. It is a qualifying small power production facility (QF). While the applicant would not normally require market-based rate authority because its project is too small, an affiliate, Algonquin SKIC 10 Solar LLC, is developing a 10-MW solar project that will be located within one mile of the applicant’s project. As a result, the combined total capacity of the two projects is approximately 30 MW, which may trigger the need for both projects to obtain market-based rate approval.

The 20-MW solar project is located in Kern County, Calif. Applicant has executed a long-term Power Purchase Agreement (PPA) with Pacific Gas & Electric (PG&E) for the entire capacity of the facility. The PPA expires May 31, 2035. The facility has executed an Interconnection Agreement with PG&E and CAISO.

Applicant’s sole managing member is Algonquin Power (Bakersfield Holdings) LLC. Bakersfield Holdings holds 100% of the Class B membership interests in the applicant. One hundred percent of the passive, non-managing Class A membership interests of applicant are held by Firstar Development LLC. Bakersfield Holdings is a wholly owned subsidiary of Algonquin Power Fund (America) Inc., which is a wholly owned indirect subsidiary of Algonquin Power Co., a trust formed under the laws of Ontario, Canada. Algonquin Power Co.’s ultimate parent is Algonquin Power & Utilities Corp. (APUC), a diversified electric power generation and utility infrastructure company with a principal place of business in Oakville, Ontario. APUC is a publicly traded company on the Toronto Stock Exchange.

The applicant requested waiver by FERC of the 60-day prior notice requirement to allow its Tariff to become effective July 14, 2016. Applicant has been in operation since last year. However, its affiliate, Algonquin SKIC 10 Solar, will commence testing on or about July 31, 2016, thus triggering the need for the market-based rate approval.

A project contact is: Danielle Waldman, Senior Corporate Counsel, Algonquin SKIC 20 Solar LLC, 354 Davis Road, Suite 100, Oakville, Ontario L6J 2X1, Phone: (905) 465-6115, Danielle.waldman@algonquinpower.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.