Pennsylvania Utility Files Application To Make Market-Based Electricity Sales

June 29, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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Peoples Natural Gas Company LLC, a natural gas distribution utility serving western Pennsylvania, applied for FERC market-based rate authority for electricity sales

Peoples Natural Gas Company said in its FERC application that it is completing development of five natural gas-fueled generators that will have a total output of 21.8 MW (the 'Facilities'). The Facilities are part of a microgrid designed to primarily serve the electricity needs of the, "Pittsburg [sic] International Airport", and on-site businesses. The Facilities are connected to the transmission system operated by PJM

Peoples Natural Gas Company said in its FERC application that, "Applicant began pre-commercial testing on April 21, 2021, and commercial operation on June 7, 2021, which has resulted in de minimis amounts of power being delivered to the PJM Interconnection, L.L.C. ('PJM')-operated transmission grid prior to Applicant filing for market-based rate authorization."

"Because of the nature of the operations of the Facilities, Applicant hereby informs the Commission that during testing of the Facilities a de minimis of power was injected into the PJM grid and a de minimis amount of power can be injected onto the PJM controlled grid today, both without Commission authorization. Applicant began pre-commercial testing on April 21, 2021 and began operating the Facilities on June 7, 2021. The power from the Facilities is primarily used to serve the needs of the Pittsburgh International Airport and therefore the primary function of the Facilities is not subject to FERC jurisdiction. To the extent that Pittsburgh International Airport operations do not require the use of all the power produced, a de minimis amount of power is put onto the PJM-controlled grid. Such de-minimis injections incurred during testing and are occurring today. Applicant was and is not being compensated for these injections. Applicant failed to recognize, however, that such non-compensated injections still required Commission authorization. Upon discovery of the need for Commission authorization, Applicant (1) accelerated the timeline for filing this Application; (2) self-reported the non-compensated sales to FERC Enforcement; (3) is in process of determining what refunds, if any, are required and, in the unlikely event that refunds are due, commits to pay any required refunds and file the necessary refund report; and (4) reviewing the activities required to comply with FERC’s market-based rate holders to ensure future compliance," Peoples Natural Gas Company said in its FERC application

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