InterGen seeks FERC authority to market power out of Mexican plants

Filed Dec. 12 at the Federal Energy Regulatory Commission by InterGen Energy Solutions LLC was a request for authorization to make market-based wholesale sales of energy, capacity, and ancillary services pursuant to the market-based rate tariff.

InterGen Energy Solutions is an indirect wholly-owned subsidiary of InterGen NV, a global power generation company. InterGen Energy Solutions does not own, operate, or control electric generation facilities or transmission facilities. Instead, it anticipates marketing energy, capacity, and ancillary services from generation facilities located in northern Mexico that are owned by the following affiliates:

  • Energia Azteca X, S.A. de C.V. – Energia Azteca is an exempt wholesale generator (EWG) that owns and operates La Rosita I, a 750-MW generation facility located near the city of Mexicali, Mexico. La Rosita I is interconnected with the California Independent System Operator balancing authority area (BAA) by the 12-mile Baja Line, a 230-kV generation tie-line facility running from La Rosita I to San Diego Gas & Electric’s (SDG&E) Imperial Valley substation. Energia Azteca, jointly with its affiliate Energia de Baja California S. de R.L. de C.V. (“Energia Baja”), owns the six-mile segment of the Baja Line located in Mexico. The U.S. segment of the Baja Line is owned by InterGen Energy Solutions’ affiliate, Baja California Power Inc. (“Baja Power”).
  • Energia Baja – Energia Baja is an EWG that owns and operates La Rosita II, an approximately 337-MW facility located near the city of Mexicali, Mexico (together with La Rosita I called the “Mexicali Facilities”). Like La Rosita I, La Rosita II is interconnected with the CAISO BAA via the Baja Line.

Currently, Energia Azteca and Energia Baja have committed the energy and capacity of the Mexicali Facilities to unaffiliated third parties pursuant to various agreements. However, following expiration of these agreements, InterGen Energy Solutions anticipates assuming responsibility for marketing electric energy, capacity, and ancillary services from the Mexicali Facilities.

Baja Power is an EWG and an indirect, wholly-owned subsidiary of InterGen whose sole business is the ownership and operation of the six-mile, U.S. segment of the Baja Line. The sole purpose of the Baja Line is to interconnect the Mexicali Facilities to the CAISO BAA and the commission previously granted Baja Power waiver of the Open Access Transmission Tariff (OATT) requirement on the basis that the Baja Line constitutes a limited and discrete transmission facility. Other than the U.S. segment of the Baja Line, Baja Power does not own, operate, or control any generation, transmission, or distribution facilities.

InterGen also holds an indirect interest in Energia Sierra Juarez U.S. LLC (ESJ-US), a public utility that has been granted market-based rate authority by the commission. ESJ-US is a wholly-owned direct subsidiary of Energia Sierra Juarez S. de R.L. de C.V. (ESJ), 50% of the interests of which are held by indirect subsidiaries of InterGen. The remaining interests in ESJ are held by indirect subsidiaries of Sempra Energy.

ESJ-US does not directly own generation or transmission facilities. Instead, ESJ-US sells power from a 156-MW wind facility owned and operated in northern Mexico by ESJ. The output of the ESJ is fully committed to SDG&E, a subsidiary of Sempra, pursuant to a long-term power purchase agreement. The ESJ Facility is interconnected to the CAISO BAA at SDG&E’s East County Substation through a 230 kV generator-tie line that is owned and operated by ESJ-US’ wholly-owned subsidiary, Energia Sierra Juarez U.S. Transmission LLC. 

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.