FERC okays market authority for 10-MW Pima Energy Storage project in Arizona

Pima Energy Storage System LLC won a Dec. 15 approval from the Federal Energy Regulatory Commission on its Oct. 27 application 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. It said in the application that 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).

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.