BHE, National Grid Dismiss Concerns Regarding PPAs with Participants in Participant Funded Transmission Line

July 12, 2011
Email This Story

Bangor Hydro-Electric Company and National Grid Transmission Services Corporation have sought a declaratory order from FERC affirming that a participant funded transmission line, to be subscribed by First Wind Holdings, Inc., meets the Commission's policy and precedent (EL11-49).

BHE and National Grid seek to build a 1,100 MW transmission line from Orrington, Maine, to Tewksbury, Massachusetts (the Northeast Energy Link). First Wind Holdings would fund the line under negotiated, cost-based rates, and it is contemplated that First Wind Holdings would fully subscribe to the line's capacity.

BHE and National Grid said that the participant-funded transmission agreement does not include any Power Purchase Agreements. However, both BHE and National Grid reserve the right to purchase energy from any participants using the line, and both companies said that they could well purchase such energy, "if such a purchase will cost-effectively assist in compliance with renewable portfolio standards."

"Any power purchase agreement between an NEL Participant and an affiliate of an NEL Party will of course be subject to approval by the state utility commission that regulates the purchaser's recovery of the costs of the agreement in its retail rates," BHE and National Grid said.

BHE and National Grid said that any such PPAs, "would likely provide important credit support for the project."

"Nonetheless, any power purchase arrangement will be independent of the transaction that is the subject of this petition," BHE and National Grid said.

"This fact eliminates issues of rate-bundling or potential affiliate abuse that concerned some commenters," regarding a similar participant-funded line built by Nstar and Northeast Utilities, BHE and National Grid said.

BHE and National Grid said that if First Wind Holdings does not fully subscribe to the line's capacity, it will offer other interested parties the opportunity to become funding participants on non-discriminatory terms that are consistent with FERC policy. Additionally, any portion of the line not scheduled by funding participants shall be available to ISO New England to schedule.

Email This Story

HOME

Copyright 2010-11 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Be Seen By Energy Professionals in Retail and Wholesale Marketing

Run Ads with Energy Choice Matters

Call Paul Ring

954-205-1738

 

 

 

 

 

Energy Choice
                            

Matters