Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

FERC Seeks More Info on Dynegy/Atlas Acquisition of GDF Suez Plants, Capacity Market Impacts

June 9, 2016

Email This Story
Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

FERC Staff have directed that Atlas Power, the joint venture between Dynegy and Energy Capital Partners, provide additional information concerning its application to acquire various plants from GDF SUEZ Energy North America

As previously reported, Atlas Power entered an agreement to acquire 8,731 megawatts of generation capacity located in ERCOT, PJM, and ISO-New England from Atlas Power (click here for background)

FERC Staff noted that, in the analysis of the effect of the proposed transactions on horizontal competition included with their FERC application, Applicants explain that the proposed transactions raise no competitive concerns in the capacity markets that may be affected by the proposed transactions. Applicants study the PJM capacity market as a whole, but also include an analysis of the EMAAC Local Deliverability Area (LDA). With respect to ISO-NE, Applicants assert that the RTO-wide capacity market is the only relevant market because import-constrained capacity zones did not clear at a separate price in previous auctions, FERC Staff noted

"Commission staff requires more information to determine whether the Proposed Transactions will have an adverse effect on competition in capacity markets if import-constrained capacity zones in fact do price separate from the market in future auctions," FERC Staff said

FERC Staff directed the applicants to supplement their application with the following:

• Please provide Delivered Price Tests of the capacity product with the destination markets as the RTO-wide market and any relevant submarkets (for all RTOs and submarkets in which generators subject to the Proposed Transactions are located), using generator going forward costs in order to determine which units would respond to a five percent increase in capacity market price. Please justify and explain the estimates used to construct your model.

• Please calculate whether Applicants would have been a pivotal supplier needed to meet zonal demand requirements (i.e., Local Sourcing Requirement in SENE in ISO-NE) in each of the aforementioned submarkets in the most recent auction. If applicable, please use the tariff definition of pivotal supplier (such as Section III.A.23.1 for ISO-NE).

• Other than Brayton Point, please describe any plans to retire or export from their host RTO any portion of the units currently operated or controlled by Dynegy, or subject to the Proposed Transactions.

• Please state whether Applicants have planned any retrofits or environmental upgrades that will increase the going-forward costs for the units currently operated or controlled by Dynegy or subject to the Proposed Transactions. Also, state whether Applicants have any power purchase agreements or fuel supply agreements in place for the units currently operated or controlled by Dynegy or subject to the Proposed Transactions and when such agreements terminate.

Additionally, with respect to the performed Delivered Price Tests, FERC Staff noted that the Applicants’ generation dataset, "appears to include certain units that will not be competitors during the study period."

"For example, in the Northeast Markets Model, Applicants list Wabash River Unit 6 as 'operating' and providing approximately 300 megawatts (MW) of competitive supply, whereas Ventyx lists the unit as retired. Additionally, Applicants’ generation dataset includes plants listed as 'under construction' as providing energy before their commercial online dates. For instance, the Oregon Energy Center (OH) plant has a Commercial Online Date of July 1, 2017, but is modeled as providing over 600 MW of competitive supply during the 2017 winter season," FERC Staff said

"Please explain why the inclusion of such units is appropriate or submit a revised analysis that excludes such units from the Delivered Price Tests," FERC Staff directed

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Billing Analyst -- Retail Supplier
NEW! -- Pricing and Commercial Analyst -- Retail Supplier
NEW! -- Door to Door Sales Team Manager -- Retail Supplier
NEW! -- Power/Natural Gas Business Development Manager -- Retail Provider
NEW! -- Gas Scheduler -- Retail Supplier
NEW! -- Sales Channel Manager -- Retail Supplier
NEW! -- Billing Manager -- Retail Supplier -- Houston
NEW! -- Account Associate / Account Manager -- Retail Supplier
NEW! -- Director of Commercial Sales -- Retail Supplier -- Houston
NEW! -- VP, Business Development -- Retail Supplier

Email This Story

HOME

Copyright 2010-16 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search