Linden Seeks FERC Order to Pass-Through Transmission Costs to Marketers

Linden VFT, LLC has filed a complaint at FERC seeking an order directing Brookfield Energy Marketing, LP and Cargill Power Markets, LLC to pay Linden VFT for certain PJM costs that Linden argues are allowed to be passed-through to the marketers under certain Transmission Scheduling Rights Purchase (TSR) Agreements.

Specifically, Linden VFT sought an order directing the marketers to: (i) reimburse Linden VFT in full, with interest, for past invoices for transmission service across Linden VFT's transmission facility that include costs billed to Linden VFT by PJM Interconnection, L.L.C. associated with such transmission service, and (ii) timely pay Linden VFT in full all future invoices for the duration of their Transmission Scheduling Rights Purchase (TSR) Agreements.

Linden VFT owns and operates a variable frequency transformer facility and, through a 345 kilovolt (kV) underground transmission line, interconnects the Linden Cogeneration Facility (located in Linden, New Jersey) to the Goethals Substation (located in Staten Island, New York).

The Facility creates approximately 315 megawatts of electric transfer capability between the PJM and NYISO balancing areas. Service over the facility is provided pursuant to the PJM Tariff, Linden said.

The PJM Transmission Service Costs in dispute are costs assessed by PJM for use of its transmission system, including Transmission Enhancement Charges (TECs, or Regional Transmission Expansion Plan-RTEP costs) and PJM Service Administration Charges.

Linden VFT argued that payment by the Respondents to Linden VFT of these PJM Transmission Service Costs, "is expressly provided for by operation of PJM Tariff Schedule 12, required under the TSR Agreements and Schedule 16, and wholly consistent with the Commission's policy and precedent regarding the pass-through to wholesale transmission customers of PJM transmission service-related charges."

Each Respondent disputes Linden VFT's right to pass through a share of the PJM Transmission Service Costs, and argue that the only charges they are required to pay Linden VFT are the TSR Charges described in Section 4.1.

Section 4.1(b) establishes Buyer's obligation to pay Linden VFT for the right to use TSRs (the TSR Charge) as follows: "The Charges for TSRs shall be an amount equal to the product of the number of Buyer's TSRs expressed in kW multiplied by the Rate set forth in Schedule 1 hereto."

The marketers have paid and continue to pay the disputed PJM Transmission Service Cost amounts into an interest-bearing escrow account.

Docket: EL13-40.