Pima Energy Storage System LLC applied Oct. 27 at the Federal Energy Regulatory Commission for authorization to make market-based sales of energy, capacity and certain ancillary services under a market-based rate tariff.
Pima will own and operate an energy storage system with a nameplate capacity of approximately 10 MW located in Tucson, Arizona, within the Tucson Electric Power (TEP) balancing authority area. Applicant will submit a notice of self-certification as an exempt wholesale generator to the commission shortly.
The storage facility may start producing capacity as early as Nov. 1, 2016. Applicant has entered into a long-term energy storage agreement with TEP, which provides TEP with the sole right to dispatch the facility in exchange for a capacity payment. The agreement has a 10-year term, although the effective date and termination date under the agreement are not yet known.
Applicant is a wholly-owned direct subsidiary of Energy Storage Systems Holdings LLC, which in turn is a wholly-owned direct subsidiary of ESI Energy LLC, which is a wholly-owned direct subsidiary of NextEra Energy Resources LLC, which is part of NextEra Energy (NYSE: NEE).