Texas Staff Recommend Denying Self-Generator Application Due to Wholesale Sales

Staff of the Public Utility Commission of Texas have recommended denying the application of Constellation EG LLC for registration as a self-generator

Constellation EG has stated in its application that it is building a behind-the-meter backup generation system in Plano, Texas to provide emergency power to an end customer co-located at the site (Aligned Data Center, LLC), and to be operated by Constellation EG for participation in load management programs. Constellation EG is not a REP, and said that it will sell the output of the 12.5 MW generator to Constellation NewEnergy Inc., a REP, for resale to the end customer.

"After reviewing the application filed in this docket, Staff has determined that Applicant does not qualify as a self-generator. Applicant has proposed to use a distributed energy (behind-the-meter) diesel reciprocating engine with a total capacity of up to 12.5 megawatts to sell electricity to Constellation NewEnergy, Inc. (Constellation New Energy) a retail electric provider that will resell the electricity generated by Applicant to Aligned Energy, a data center operator. Applicant and Constellation New Energy are affiliate companies. Applicant and Aligned Energy are not affiliated companies," Staff said.

"As defined in 16 TAC § 25.109, a self-generator is a person that owns an electric generating facility rated at one megawatt or more and is not a power generation company. A power generation company is defined by reference to 16 TAC § 25.5 and is, in relevant parts, a person that generates electricity that is intended to be sold at wholesale. Applicant cannot register as a self-generator because the capacity of its generating facility is greater than one megawatt and it will be generating electricity that is intended to be sold at wholesale," Staff said.

Docket 44682