FERC Filings
Motion for Leave to Intervene and Comments of the Electric Power Supply Association re: AES Somerset, LLC v. Niagara Mohawk Power Corporation
Comments
EPSA supports the Somerset complaint against Niagara Mohawk and reiterates the support and comments contained in the Independent Power Producers’ of New York (IPPNY) filing in this proceeding. In support of its complaint, Somerset refers to the Commission’s Station Power Orders which set forth the ability of a generator to self supply its station power requirements and make clear that this self-supply is not subject to a state jurisdictional retail delivery service rate when it provides positive net output to the grid as there is no “sale” when a generator engages in self supply. Further, the Station Power Orders approved the implementation of station power rules for both the PJM Interconnection, LLC (PJM) and NYISO control areas. The NYISO Commission-approved tariff includes the Station Power Netting Tariff, which provides that a generator is deemed to have self-supplied its station power if it has a positive net output over a monthly period.
EPSA agrees with Somerset’s assertion that Niagara Mohawk’s attempt to bill the generator for its self-supplied station power requirements is improper, unlawful, discriminatory and in clear violation of the Commission’s orders and policies. As stated in the PJM II Station Power Order,
Thus, when a generator self-supplies its station power requirements and accounts for station power by netting its requirements against gross output, there is no sale (for end use or otherwise) in the first instance...We [the Commission] believe that this determination is consistent with the FPA, will better ensure comparable treatment, and will address the concerns of the merchant generators that some vertically-integrated utilities are favoring their own or affiliated generating facilities to the competitive disadvantage of merchant generators.
The Commission correctly settled both the jurisdictional and equity debates in its Station Power Orders, which required the fair and equitable treatment of all competitive generators under non-discriminatory rules and terms. As EPSA has stated in numerous previous cases on the Station Power issue, the requirement for such non-discriminatory treatment levels the playing field between merchant generation and generation owned and operated by vertically integrated utilities (which have historically netted their own power supply output to allow for Station Power self-supply without distribution or transmission charges). This level playing field is an absolute prerequisite for the continued development of competitive wholesale electricity markets. However, by its actions following the Station Power Orders, Niagara Mohawk has not yet heeded the Commission’s station power precedent. The Commission should use this complaint to further clarify for Niagara Mohawk the Commission’s station power rules.