Invenergy Nelson LLC ) Docket No
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20141015-5076 FERC PDF (Unofficial) 10/15/2014 1:38:48 PM UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION ____________________________________ ) Invenergy Nelson LLC ) Docket No. ER15-___-000 ____________________________________) APPLICATION FOR MARKET-BASED RATE AUTHORIZATION, REQUEST FOR RELATED WAIVERS AND REQUEST FOR BLANKET APPROVAL UNDER 18 C.F.R. PART 34 OF ALL FUTURE ISSUANCES OF SECURITIES Pursuant to Section 205 of the Federal Power Act ("FPA"), 16 U.S.C. § 824d, and Part 35 of the Federal Energy Regulatory Commission's ("Commission") Rules of Practice and Procedure, 18 C.F.R. Part 35, Invenergy Nelson LLC ("Applicant" or “Nelson”) requests that the Commission: (i) grant it authorization to make market-based wholesale sales of energy, capacity, and ancillary services pursuant to the market-based rate tariff ("Tariff") attached hereto as Exhibit A; (ii) accept the Tariff for filing with an effective date of December 15, 2014; (iii) grant it waivers of Order Nos. 8881 and 8902 and 18 C.F.R. §35.28 to file an Open Access Transmission Tariff, the requirements under Order No. 8893 and 18 C.F.R. 1 Promoting Wholesale Competition Through Open Access Non-Discriminatory Transmission Services by Public Utilities; Recovery of Stranded Costs by Public Utilities and Transmitting Utilities, Order No. 888, FERC Stats. & Regs. ¶ 31,036 (1996), order on reh’g, Order No. 888-A, FERC Stats. & Regs. ¶ 31,048, order on reh’g, Order No. 888-B, 81 FERC ¶ 61,248 (1997), order on reh’g, Order No. 888-C, 82 FERC ¶ 61,046 (1998), aff’d in relevant part sub nom. Transmission Access Policy Study Group v. FERC, 225 F.3d 667 (D.C. Cir. 2000), aff’d sub nom. New York v. FERC, 535 U.S. 1 (2002). 2 Preventing Undue Discrimination and Preference in Transmission Service, Order No. 890, FERC Stats. & Regs. ¶ 31,241, order on reh’g, Order No. 890-A, FERC Stats. & Regs. ¶ 31,261 (2007), order on reh’g, Order No. 890-B, 123 FERC ¶ 61,299 (2008), order on reh’g, Order No. 890-C, 126 FERC ¶ 61,228, order on clarification, Order No. 890-D, 129 FERC ¶ 61,126 (2009). 3 Open Access Same-Time Information System and Standards of Conduct, Order No. 889, FERC Stats. & Regs. ¶ 31,035 (1996), order on reh’g, Order No. 889-A, FERC Stats. & Regs. ¶ 31,049, reh’g denied, Order No. 889-B, 81 1 DCACTIVE-29348883.6 20141015-5076 FERC PDF (Unofficial) 10/15/2014 1:38:48 PM Part 37 to establish an Open Access Same-Time Information System, and the requirements under Order Nos. 889, 2004,4 and 717,5 and Part 18 C.F.R. Part 358 to comply with the Standards of (“Open Access Waivers”) for the reasons set forth in Section VII of this Application that are routinely granted to generation companies that own discrete interconnection facilities; and (iv) grant it the other waivers and pre-approvals described in Section VIII of this Application, which the Commission routinely grants to entities with market-based rate authority. Section VI of this Application sets forth the Applicant’s status as a Category 2 Seller, as that term is defined in 18 C.F.R. §35.36(a) of the Commission’s regulations, for the Northeast Region and a Category 1 Seller, as that term is defined in 18 C.F.R. §35.36(a), for the Central, Northwest, Southwest, Southwest Power Pool, and Southeast regions established in Market- Based Rates for Wholesale Sales of Electric Energy, Capacity and Ancillary Services by Public Utilities, Order No. 697, 72 Fed. Reg. 39904 (Jul. 20, 2007) (hereafter referred to as “Order No. 697”) for purposes of a market-based rate seller’s triennial update reporting obligations or exemptions thereto. As discussed in Section VII of this Application, the Applicant requests a blanket authorization under Section 204 of the FPA and Part 34 of the Commission’s regulations to issue FERC ¶ 61,253 (1997). 4 Standards of Conduct for Transmission Providers, Order No. 2004, FERC Stats. & Regs. ¶ 31,155 (2003), order on reh’g, Order No. 2004-A, FERC Stats. & Regs. ¶ 31,161, order on reh’g, Order No. 2004-B, FERC Stats. & Regs. ¶ 31,166, order on reh’g, Order No. 2004-C, FERC Stats. & Regs. ¶ 31,172 (2004), order on reh’g, Order No. 2004-D, 110 FERC ¶ 61,320 (2005), vacated and remanded as it applies to natural gas pipelines sub nom. National Fuel Gas Supply Corp. v. FERC, 468 F.3d 831 (D.C. Cir. 2006); see Standards of Conduct for Transmission Providers, Order No. 690, FERC Stats. & Regs. ¶ 31,237, order on reh’g, Order No. 690-A, FERC Stats. & Regs. ¶ 31,243 (2007); see also Standards of Conduct for Transmission Providers, Notice of Proposed Rulemaking, FERC Stats. & Regs. ¶ 32,611 (2007); Notice of Proposed Rulemaking, FERC Stats. & Regs. ¶ 32,630 (2008). 5 Standards of Conduct for Transmission Providers, Order No. 717, FERC Stats. & Regs. ¶ 31,280 (2008), order on reh’g, Order No. 717-A, FERC Stats. & Regs. ¶ 31,297, order on reh’g, Order No. 717-B, 129 FERC ¶ 61,123 (2009), order on reh’g, Order No. 717-C, 131 FERC ¶ 61,045 (2010), order on reh’g, Order No. 717-D, 135 FERC ¶ 61,017 (2011). 2 DCACTIVE-29348883.6 20141015-5076 FERC PDF (Unofficial) 10/15/2014 1:38:48 PM securities and assume liabilities. In order to ensure that it timely obtains such authorization, the Applicant requests that the Commission issue a notice concerning the request for such blanket authorization under Section 204 and Part 34 of the Commission’s regulations at the same time, and with the same comment period, as that issued for the notice of the Applicant’s Section 205 application for market-based rate authorization.6 The Applicant further requests that the Commission grant the Applicant’s request for blanket authorization to issue securities and assume liabilities (without imposing any additional notice period) in the same order and at the same time it issues the order granting the Applicant market-based rate authority so that such blanket authorization will be fully effective at the time of the order.7 I. LIST OF DOCUMENTS SUBMITTED WITH THIS FILING The Applicant has included the following exhibits to this filing: Exhibit A - Tariff8 Exhibit B – Applicant’s Upstream Owner Chart Exhibit C - List of Applicant’s and Energy Affiliates’ Assets Exhibit D - Pivotal and Market Share Screen Analyses 6 See, e.g., Notice Announcing Combined Notice of Initial Market-Based Rate Authorization Filings issued by the Commission on April 3, 2008; Saracen Energy Partners, L.P., Docket Nos. ER08-901-000, et al., Supplemental Notice that Initial Market-Based Rate Filing Includes Request For Blanket Section 204 Authorization issued May 22, 2008. 7 See, e.g., Saracen Energy Partners, L.P., Docket Nos. ER08-901-000, et al., Letter Order (June 12, 2008). (Commission granted blanket authorization under Part 34 of the Commission’s regulations that was fully effective at the time the order granting market-based rate authority was issued and did not impose any additional notice period for the Section 204 and Part 34 blanket authority because notice of that request was issued contemporaneously with market-based rate request.). 8 The Applicant is submitting the Tariff in accordance with Electronic Tariff Filings, Order No. 714, 73 Fed. Reg. 57515 (Oct. 3, 2008). 3 DCACTIVE-29348883.6 20141015-5076 FERC PDF (Unofficial) 10/15/2014 1:38:48 PM Exhibit E - List of MBR Affiliates’ Quarterly Site Reports Exhibit F - Portions of AlphaGen Filing II. COMMUNICATIONS Copies of all communications concerning this Application should be addressed to the following: Laura V. Szabo Joseph Condo Crowell & Moring LLP General Counsel 590 Madison Ave. Invenergy LLC 20th Floor One South Wacker, Suite 1900 New York, NY 10022-2524 Chicago, IL 60606 Phone: (212) 895-4271 Tel.: (312) 582-1465 Fax: (212) 223-4134 [email protected] [email protected] The foregoing persons are designated for service pursuant to 18 C.F.R. § 385.2010. III. DESCRIPTION OF THE APPLICANT A. The Applicant’s Activities Nelson is constructing and will own and operate a 738 MW (nameplate) natural gas-fired generation project that will be located near Rock Falls, Illinois (the “Nelson Project”). Nelson will sell electric energy, capacity and/or ancillary services from the Nelson Project at wholesale. The Nelson Project could possibly begin generating test power as early as December 15, 2014. Nelson is an exempt wholesale generator ("EWG") under the Public Utility Holding Company Act of 2005 and the Commission's promulgating regulations.9 Nelson will also own interests in radial electric interconnection facilities that will consist of a 345 kV switchyard, transformers, disconnect switches, circuits, an approximately 1 mile 9 See Docket No. EG08-42-000. 4 DCACTIVE-29348883.6 20141015-5076 FERC PDF (Unofficial) 10/15/2014 1:38:48 PM 345 kV generator-tie line and related facilities, which are necessary to effectuate Nelson’s wholesale power sales from the Nelson Project. Through interconnection facilities in which Nelson will own interests, the Nelson Project will be interconnected with the transmission system owned by Commonwealth Edison Company (“ComEd”). ComEd's transmission system is controlled by PJM Interconnection, L.L.C. ("PJM"). The Nelson Project, including the interconnection facilities in which Nelson will hold interests, will be located on land which Nelson owns or that is owned by third-parties but which Nelson has rights to use pursuant to easements or other land use arrangements entered into with such third-parties. B. The Applicant’s Relevant Affiliates 1. The Applicant’s Upstream Owners As described below, the Applicant is an indirect, wholly-owned subsidiary of Invenergy Investment Company LLC (“Invenergy Investment”).