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FERC Issues Letter Order Accepting Bayonne Energy Center, LLC's 6/26/14 Filing of an Updated Market Power Analysis for the Northeast Region in...(Targeted News Service Via Acquire Media NewsEdge) FERC Issues Letter Order Accepting Bayonne Energy Center, LLC's 6/26/14 Filing of an Updated Market Power Analysis for the Northeast Region in Compliance with the Regional Reporting Schedule Adopted in Order No. 697 etc Under ER11-3460 WASHINGTON, Oct. 15 -- The U.S. Department of Energy's Federal Energy Regulatory Commission issued the text of the following delegated order: In Reply Refer To: Bayonne Energy Center, LLC Docket No. ER11-3460-004 October 15, 2014 Mr. Earle H. O'Donnell Attorney for Bayonne Energy Center, LLC WHITE & CASE LLP 701 Thirteenth Street, N.W. Washington, DC 20005 Reference: Updated Market Power Analysis in Compliance with Order No. 697 Dear Mr. O'Donnell: On June 26, 2014, you filed on behalf of Bayonne Energy Center, LLC (Bayonne Energy) an updated market power analysis for the Northeast region in compliance with the regional reporting schedule adopted in Order No. 697 and pursuant to the Commission's order granting Bayonne Energy authority to sell electric energy and capacity at market-based rates in the New York City submarket. Your filing was noticed on June 27, 2014, with comments, protests or interventions due on or before August 25, 2014. None was filed. Pursuant to the authority delegated to the Director, Division of Electric Power Regulation - West, under 18 C.F.R. section 375.307, your submittal filed in the referenced docket is accepted for filing. You state that Bayonne Energy is a Delaware limited liability company that owns and operates a 512 megawatt (MW) natural gas-fired electric generating plant located in Bayonne, New Jersey. You state that Bayonne Energy is equally owned by Hess Bayonne, LLC, a wholly owned subsidiary of Hess Corporation; PER-D Bayonne I, Inc. and PER-D Bayonne II, LLC which are wholly owned subsidiaries of AL Bayonne Holdings, LLC. You further state that AL Bayonne Holdings, LLC is a wholly owned subsidiary of ArcLight Energy Partners Fund III, L.P. (ArcLight Fund III). You state that the Commission has granted waiver of its Open Access Transmission Tariff (OATT) requirements with respect to Bayonne Energy's ownership of a 345 kV alternating current submarine electric cable routed from Bayonne, New Jersey to Brooklyn, New York. You also state that the Commission has granted waiver of its OATT requirements for ArcLight Fund III's' transmission lines located in the California Independent System Operator Corporation (CAISO) market, Terra-Gen Dixie Valley, LLC's generator lead line located in the Southwest region, and a transmission line located in the CAISO owned by Sagebrush, a California partnership. Further, you affirmatively state that Bayonne Energy has not erected barriers to entry and will not erect barriers to entry into the relevant market. Market-Based Rate Authorization The Commission allows power sales at market-based rates if the seller and its affiliates do not have, or have adequately mitigated, horizontal and vertical market power. You state that Bayonne Energy relies on a recently accepted market power analysis to demonstrate that Bayonne Energy passes the indicative screens in the New York City submarket. Accordingly, Bayonne Energy's submittal satisfies the Commission's requirements for market-based rate authority regarding horizontal market power. Based on your representations, Bayonne Energy's submittal also satisfies the Commission's requirements for market-based rate authority regarding vertical market power. Bayonne Energy must file electronically with the Commission Electric Quarterly Reports. Bayonne Energy further must timely report to the Commission any change in status that would reflect a departure from the characteristics the Commission relied upon in granting market-based rate authority in accordance with Order No. 697. This action does not constitute approval of any service, rate, charge, classification, or any rule, regulation, or practice affecting such rate or service provided for in the filed documents; nor shall such action be deemed as recognition of any claimed contractual right or obligation affecting or relating to such service or rate; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against any of the applicants. This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R section 385.713. Questions regarding the above order should be directed to: Federal Energy Regulatory Commission Attn: Michelle Barnaby Phone: (202) 502-8407 Office of Energy Market Regulation 888 First Street, N.E. Washington, D.C. 20426 Sincerely, Steve P. Rodgers, Director Division of Electric Power Regulation - West TNS 18EstebanLiz-141016-30FurigayJane-4900093 30FurigayJane (c) 2014 Targeted News Service |