Federal Energy Regulatory Commission Approves Market-Based Rate Authority for Sellers

The Federal Energy Regulatory Commission has issued a delegated order approving the market-based rate authority for Shell Energy North America (US), L.P.; Inspire Energy Holdings, LLC; MP2 Energy LLC; and MP2 Energy NE LLC, collectively referred to as Sellers. The Sellers have acquired generation capacity located within the Southern Company Services, Inc. and Tennessee Valley Authority balancing authority areas, resulting in a cumulative net increase of 100 MW or more in each market. The Commission accepted the Sellers' change in status for filing, citing that the acquisition does not affect the conditions relied upon when granting market-based rate authority.

Key Takeaways:

• The Federal Energy Regulatory Commission has approved the market-based rate authority for Shell Energy North America (US), L.P.; Inspire Energy Holdings, LLC; MP2 Energy LLC; and MP2 Energy NE LLC.
• The Sellers have acquired generation capacity totaling 100 MW or more in each of the Southern Company Services, Inc. and Tennessee Valley Authority balancing authority areas.
• The Commission has accepted the Sellers' change in status for filing, stating that the acquisition does not affect the conditions relied upon when granting market-based rate authority.
• The Sellers satisfy the Commission's requirements for market-based rate authority regarding horizontal market power.
• The change in status was filed on October 22, 2024, and was noticed on October 23, 2024, with comments, protests or interventions due on or before November 12, 2024.
• No comments, protests, or interventions were filed within the specified timeframe.

Statistics:

• 100 MW: The cumulative net increase in generation capacity for each market resulting from the Sellers' acquisition.
• 2: The number of balancing authority areas affected by the Sellers' acquisition.
• 1: The number of days for comments, protests, or interventions after the notice was published on the Federal Energy Regulatory Commission website.
• 30 days: The timeframe allowed for requests for rehearing by the Commission after the issuance of the delegated order.

Sources:

• Federal Energy Regulatory Commission, "Federal Energy Regulatory Commission Issues the following Delegated Order," (Washington, D.C.: May 12, 2025).
• 18 C.F.R. SS 375.307: The delegated authority to the Director, Division of Electric Power Regulation - West.
• 18 C.F.R. SS 385.713: The regulation for rehearing by the Commission.