Federal Energy Regulatory Commission Approves Market-Based Rate Tariff for Little Blue Wind Project

Strategic Insights -

The Federal Energy Regulatory Commission has issued a delegated order approving a market-based rate tariff for Little Blue Wind Project, LLC, a company owned by NextEra Energy Resources, LLC. The order, issued by the Commission on August 6, 2021, grants market-based rate authority to Little Blue, allowing it to sell energy, capacity, and ancillary services at market-based rates.

According to the order, Little Blue meets the criteria for a Category 2 seller in the Southwest Power Pool, Inc. (SPP) region, and a Category 1 seller in all other regions. The Commission found that Little Blue satisfies the requirements for market-based rate authority regarding both horizontal and vertical market power. The Commission also granted waivers for Little Blue's request to waive certain accounting and reporting requirements.

Key Takeaways:

  • The Federal Energy Regulatory Commission approved a market-based rate tariff for Little Blue Wind Project, LLC, a company owned by NextEra Energy Resources, LLC.
  • The order grants market-based rate authority to Little Blue, allowing it to sell energy, capacity, and ancillary services at market-based rates.
  • Little Blue meets the criteria for a Category 2 seller in the SPP region and a Category 1 seller in all other regions.
  • The Commission found that Little Blue satisfies the requirements for market-based rate authority regarding both horizontal and vertical market power.
  • The Commission granted waivers for Little Blue's request to waive certain accounting and reporting requirements.
  • Little Blue is required to file Electric Quarterly Reports (EQRs) with the Commission, consistent with Order Nos. 200111 and 768.
  • Little Blue must also timely report to the Commission any change in status that would reflect a departure from the characteristics the Commission relied upon in granting market-based rate authority.

Statistics:

  • Market-based rate tariff approved: Yes
  • Category 2 seller in SPP region: Yes
  • Category 1 seller in all other regions: Yes
  • Waivers granted for accounting and reporting requirements: Yes
  • EQRs required: Yes
  • Timeframe for reporting changes in status: As needed

Sources:

  • Federal Energy Regulatory Commission, Delegated Order, August 6, 2021
  • Federal Register, notice of protest period, August 2021
  • Commission regulations, 18 C.F.R. §§ 35.28, 35.28(d)(1), 35.42 (2020)
  • Order No. 697, 119 FERC P 61,295 (2007)
  • Order No. 816, 153 FERC P 61,065 (2015)
  • Order No. 784, 144 FERC P 61,056 (2013)
  • Order No. 2001, 99 FERC P 61,107 (2002)
  • Order No. 768, 140 FERC P 61,232 (2012)
  • Order No. 770, 141 FERC P 61,120 (2012)