1 United States of America Before The

20160809-5208 FERC PDF (Unofficial) 8/9/2016 4:07:59 PM UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION The Goodyear Tire & Rubber Company, ) ) Docket No. EL16-___-000 Complainant, ) ) v. ) ) Entergy Texas, Inc. ) ) Respondent. ) COMPLAINT OF THE GOODYEAR TIRE & RUBBER COMPANY AGAINST ENTERGY TEXAS, INC., REQUEST FOR FAST TRACK PROCESSING, REQUEST FOR SHORTENED ANSWER PERIOD, AND MOTION FOR STAY Pursuant to Section 306 of the Federal Power Act,1 the Public Utility Regulatory Policies Act (“PURPA”),2 Section 206 of the Rules and Regulations of the Federal Energy Regulatory Commission (“Commission”),3 and Section 292.303 of the Commission’s regulations,4 The Goodyear Tire & Rubber Company (“Goodyear,” or “Complainant”) submits this Complaint against Entergy Texas, Inc. (“ETI”). For the reasons set forth below, Complainant requests that the Commission process this Complaint utilizing Fast Track procedures in accordance with Rule 206(h) of the Commission’s Rules of Practice and Procedure5 and issue an order (1) granting the Complaint and (2) finding that ETI’s proposed termination of the Agreement for 1 16 U.S.C. § 825e (2012). 2 16 U.S.C. § 824a-3(a). 3 18 C.F.R. § 385.206 (2016). 4 18 C.F.R. § 292.303. 5 18 C.F.R. § 385.206(h). 1 20160809-5208 FERC PDF (Unofficial) 8/9/2016 4:07:59 PM Purchased Power between Goodyear and ETI (the “PPA”)6 is contrary to ETI’s obligation to purchase energy and capacity from Goodyear pursuant to Section 292.303 of Commission’s regulations7 implementing PURPA, and the Commission’s January 21, 2016, order (“January 21 Order”) granting, in part, ETI’s application to terminate its mandatory purchase obligation.8 As further set forth below, ETI acknowledged in its Commission filings requesting the January 21 Order that the Goodyear qualifying facility (“QF”) subject to the PPA is an under-20 MW QF from which ETI remains obligated to purchase energy and capacity. However, ETI now seeks to revise its position after the January 21 Order issued and to improperly terminate the PPA; Goodyear respectfully requests an order granting this Complaint and preventing such termination. In addition, in the event the Commission does not issue an order granting the relief requested in the Complaint on or before August 31, 2016, Goodyear requests the Commission stay ETI’s proposed termination of the sales of QF energy by Goodyear described herein until such time as either (1) the Complaint is granted or (2) the Complaint is denied and Goodyear has had a reasonable opportunity to register with the Midcontinent Independent System Operator, Inc. (“MISO”) and enter into alternate arrangements for the sale of Goodyear’s QF energy in MISO. 6 The Agreement for Purchase of Energy from Qualifying Facilities was originally between Goodyear and Entergy Gulf States, Inc. (formerly Gulf States Utilities), and dated December 10, 1999, but fully executed as of December 14, 1999. ETI is the successor-in-interest to Entergy Gulf States, Inc. under the PPA. The PPA is provided herewith in confidential Attachment 1. The PPA contains privileged and confidential information consisting of commercial arrangements between Goodyear and ETI, and Goodyear respectfully requests that Attachment 1 be treated as confidential subject to the protective order provided herewith as Attachment 9. 7 Id. 8 Entergy Services, Inc., et al., 154 FERC ¶ 61,035 (2016) (“January 21 Order”). The application was filed by Entergy Services, Inc. on behalf of ETI and other subsidiaries; this complaint refers to the application as being filed by ETI. 2 20160809-5208 FERC PDF (Unofficial) 8/9/2016 4:07:59 PM I. SUMMARY Complainant and ETI are parties to a PPA pursuant to which ETI purchases QF energy from Goodyear as required by PURPA and the Commission’s rules and regulations implementing PURPA. On January 21, 2016, the Commission issued an order granting ETI’s September 29, 2014, application seeking to terminate, on a service territory-wide basis, the requirement imposed on ETI under PURPA and the Commission’s implementing rules and regulations to enter into new power purchase obligations or contracts to purchase electric energy and capacity from QFs and small power production facilities with a net capacity in excess of 20 MW. While ETI was thus relieved of its obligation to purchase energy and capacity from QFs with a net capacity in excess of 20 MW, the January 21 Order did not relieve ETI of its statutory obligation to purchase energy and capacity from QFs like Goodyear’s with a net capacity of 20 MW or less. Goodyear has engaged in multiple communications with ETI to inform ETI of Goodyear’s position that the net capacity of the Goodyear QF at issue is less than 20 MW and thus the January 21 order is not applicable to the PPA. Nevertheless, on June 1, 2016, ETI notified Goodyear of its unwarranted and therefore unexpected intent to terminate the PPA effective September 1, 2016, “in light of” the relief granted by the Commission in the January 21 Order.9 Goodyear now files this Complaint with the Commission to remedy ETI’s erroneous interpretation and application of the Commission’s order as relieving ETI of the obligation to purchase energy and capacity from Goodyear. In addition, at this point there is insufficient time for Goodyear to 9 The June 1, 2016, notice of termination, which was received by Goodyear on June 6, 2016, is included herewith as Attachment 7. 3 20160809-5208 FERC PDF (Unofficial) 8/9/2016 4:07:59 PM register with MISO and obtain Commission authorizations required in order to sell energy to other counterparties as of September 1.10 Accordingly, Goodyear seeks Fast Track processing of this Complaint pursuant to the Commission’s regulations and the issuance of an order on the Complaint on or before August 31, 2016. Finally, in the event the Commission does not issue an order granting the Complaint on or before August 31, 2016, Goodyear requests the Commission issue a stay of the application of its January 21 Order to sales of QF energy by Goodyear until such time as either (1) the Complaint is granted or (2) the Complaint is denied and Goodyear has had a reasonable opportunity to register with MISO and enter into alternate arrangements for the sale of Goodyear’s QF energy into MISO. II. COMMUNICATIONS Communications regarding this Complaint should be directed to the following individuals: John S. Decker Damien R. Lyster Vinson & Elkins LLP 2200 Pennsylvania Ave NW Suite 500 West Washington, DC 20037-1701 Tel: (202) 639-6599 [email protected] 10 As explained further below, due to the timing of the unexpected attempt by ETI to terminate the PPA, Goodyear is unable to become a participant in the MISO markets until December 1, 2016, at the earliest. 4 20160809-5208 FERC PDF (Unofficial) 8/9/2016 4:07:59 PM III. DESCRIPTION OF THE PARTIES A. The Goodyear Tire & Rubber Company (Complainant) The Goodyear Tire & Rubber Company is an Ohio corporation with its principal place of business located at 200 Innovation Way, Akron, Ohio 44316-0001. Goodyear is one of the world’s leading manufacturers of tires, engaging in operations in most regions of the world. As further explained herein, Goodyear owns and operates a chemical plant located in Beaumont, Texas, that produces synthetic rubber. As further explained below, the Beaumont plant is served by two QFs owned and operated by Goodyear: a cogeneration facility self-certified as a QF in Commission Docket No. QF87-116-000 and a separate cogeneration facility self-certified as a QF in Commission Docket No. QF99- 85-000. Goodyear’s Beaumont chemical plant and QFs are located within the area served by Entergy Texas, Inc. B. Entergy Texas, Inc. (Respondent) Entergy Texas, Inc. is a Texas corporation with its principal place of business located at 350 Pine Street, Beaumont, Texas, 77701. ETI is a vertically integrated electric utility located in the MISO regional transmission organization market and provides wholesale and retail electric power service in Texas, including Beaumont where Complainant’s QFs are located. Specifically, ETI is the successor-in-interest to Entergy Gulf States, Inc. (formerly Gulf States Utilities) under the PPA. ETI is a subsidiary and utility operating company of Entergy Corporation, which is an electric utility holding 5 20160809-5208 FERC PDF (Unofficial) 8/9/2016 4:07:59 PM company that consists of, in part, the Entergy Operating Companies11 and various service and support subsidiaries, including Entergy Services, Inc. (“ESI”). IV. BACKGROUND A. Goodyear QFs Goodyear owns and operates The Goodyear Tire & Rubber Company Chemical Plant in Beaumont, Texas, which produces a portion of Goodyear’s global synthetic rubber requirements. The Beaumont plant consists of the original western portion of the plant and, as discussed below, the Beaumont/East expansion. In addition, Goodyear owns and operates two QFs, a cogeneration facility self-certified as a QF in Commission Docket No. QF87-11612 (the “1987 Beaumont/West QF”) and a separate cogeneration facility self-certified as a QF in Commission Docket No. QF99-8513 (the “1999 Beaumont/East QF”). As explained in the 1987 Beaumont/West QF Self-certification, the 1987 Beaumont/West QF includes multiple direct-fired boilers that produce steam for use in Goodyear’s west chemical facility at Beaumont, Texas. Steam is delivered from the boilers, through a turbine, and on to the chemical plant for use in heat exchangers for hydrocarbon distillation. The 1987 Beaumont/West QF is wholly owned by Goodyear and all electricity generated by the cogeneration facility is utilized by the Beaumont chemical plant. This cogeneration facility is purely demand driven—it cannot operate 11 The Entergy Operating Companies are Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, Inc., ETI, and Entergy New Orleans, Inc.

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