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Electric utilities

Federal Energy Regulatory Commission Accepts Updated Market Power Analysis for Four Companies

Strategic Insights

— 2 min read

The Federal Energy Regulatory Commission (FERC) has accepted an updated market power analysis for four companies, Macquarie Energy LLC, Macquarie Energy Trading LLC, Clean Energy Future - Lordstown, LLC, and Cleco Cajun LLC. This analysis is a crucial step in determining whether these companies can operate at market-based rates in various wholesale energy markets.

The four companies, collectively referred to as Macquarie Companies, operate in different regions and engage in various aspects of the energy market. Macquarie Energy operates as a power marketer in several markets across the United States, while Macquarie Energy Trading engages in trading virtual products and holding financial transmission rights in all regional transmission organization and independent system operator markets. Clean Energy Future owns and operates a natural gas-fired combined cycle facility in Ohio, while Cleco Cajun is a power marketer that does not directly own or operate any electric generation, transmission, or distribution facilities.

The updated market power analysis was submitted by Macquarie Companies on June 30, 2020, as per the regional reporting schedule. The Commission accepted this analysis, finding that the companies meet the Commission's standards for market-based rate authority. This decision allows the companies to continue operating at market-based rates in various wholesale energy markets.

Key Takeaways:

  • Macquarie Energy LLC, Macquarie Energy Trading LLC, Clean Energy Future - Lordstown, LLC, and Cleco Cajun LLC submitted an updated market power analysis on June 30, 2020.
  • The companies operate in different regions and engage in various aspects of the energy market, including power marketing, trading, and generation.
  • The Commission accepted the updated market power analysis, finding that the companies meet the Commission's standards for market-based rate authority.
  • The companies are affiliated with a significant amount of generation capacity in various regions, including approximately 744.9 megawatts in the PJM balancing authority area and approximately 3,481 megawatts in the MISO market.
  • Cleco Cajun is affiliated with Cleco Power, an investor-owned utility that generates, purchases, transmits, distributes, and sells electricity in the MISO market.
  • The Commission granted Intervention and Protest motions filed by Monitoring Analytics, LLC and the New Jersey Board of Public Utilities in response to the updated market power analysis.

Statistics:

  • The companies submitted an updated market power analysis that included information on their operations, affiliation structures, and generation capacity.
  • The companies have a significant presence in various wholesale energy markets, with affiliations in the PJM and MISO regions.
  • The companies operate approximately 6,225 megawatts of generation capacity, with the majority coming from their affiliations in the MISO market.
  • The Commission accepted the updated market power analysis, allowing the companies to continue operating at market-based rates in various wholesale energy markets.

Sources:

  • Federal Energy Regulatory Commission, Order Accepting Updated Market Power Analysis (Issued August 18, 2021)
  • Refinements to Policies & Procedures for Market-Based Rates for Wholesale Sales of Elec. Energy, Capacity & Ancillary Servs. by Pub. Utils., Order No. 816, 153 FERC P 61,065 (2015), order on reh'g, Order No. 816-A, 155 FERC P 61,188 (2016)
  • Market-Based Rates for Wholesale Sales of Elec. Energy, Capacity & Ancillary Servs. by Pub. Utils., Order No. 697, 119 FERC P 61,295 (2007), order on reh'g, Order No. 697-A, 123 FERC P 61,055 (2008), order on reh'g, Order No. 697-B, 125 FERC P 61,326 (2009), order on reh'g, Order No. 697-C, 127 FERC P 61,284 (2010), order on reh'g, Order No. 697-D, 130 FERC P 61,206 (2011)

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