Hermiston contract to supply power to PacifiCorp expired on July 1

Filed on July 20 at the Federal Energy Regulatory Commission was a notice by Hermiston Generating Co. LP of a change in facts related to expiration of a long-term power contract.

Hermiston owns an undivided 50% interest in an approximately 474-MW facility located near Hermiston, Oregon. Previously, Hermiston made cost-based sales of power to PacifiCorp, the co-owner of the Hermiston Facility, pursuant to a Restated and Amended Long-Term Power Sales Agreement between Hermiston and PacifiCorp dated December 1998, which expired July 1, 2016.

Following this expiration of the LTPSA, Hermiston said it will sell power from the Hermiston Facility at market-based rates. This change does not affect Hermiston’s status as an exempt wholesale generator.

Hermiston noted that it has applied to the commission to amend its market-based rate tariff to permit sales of up to the full output from the Hermiston Facility at market-based rates, with a requested effective date of July 1, 2016.

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.

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.

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.