Algonquin Power Sanger to lose cogeneration QF status in early 2017

Algonquin Power Sanger LLC on Dec. 28 requested that the Federal Energy Regulatory Commission accept for filing Sanger’s Market-Based Rate Tariff and to grant Sanger blanket authorization to make wholesale sales of electric energy, capacity, and ancillary services at market-based rates pursuant to the terms and conditions of the tariff.

Sanger owns and operates a 60-MW natural gas-fired facility located in Sanger, California. The facility is located in the California Independent System Operator region and is interconnected to the transmission system of Pacific Gas & Electric (PG&E). It currently operates as a cogeneration Qualifying Facility (QF) and sells its electricity output to PG&E and the remaining capacity to its thermal host.

In early 2017, though, the facility will cease operating as a cogeneration QF and will instead sell 45 MW to 47 MW of its capacity to PG&E pursuant to a renegotiated long-term power purchase agreement. The remaining 13 MW-15 MW will be available for sale into the CAISO market.

Sanger’s sole and managing member is Algonquin Power Fund (America) Inc., which is a wholly owned subsidiary of Algonquin Power (America) Inc. (APA). APA is a wholly owned subsidiary of Algonquin Power (Canada) Holdings Inc. (APCH). APCH is a subsidiary of Algonquin Power Co. (APCo), a trust formed under the laws of the Province of Ontario, Canada. APCO’s 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 and the New York Stock Exchange.

Sanger has two public utility affiliates in first tier markets that own generation and/or provide retail service, including Luning Energy LLC, which is constructing and will own and operate an approximately 50-MW solar project (including limited, radial electric interconnection facilities necessary to effectuate its wholesale power sales) located in Mineral County, Nevada. The Luning Project will be interconnected with the transmission system owned by Sierra Pacific Power d/b/a NV Energy. Luning is an EWG and has been granted market-based rate authority.

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.