[Federal Register Volume 83, Number 90 (Wednesday, May 9, 2018)]
[Notices]
[Pages 21285-21287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09854]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission


Before Commissioners: Cheryl A. LaFleur, Neil Chatterjee, Robert 
F. Powelson, and Richard Glick

CinCap V, LLC................  Docket No. ER10-1325-008
Duke Energy Beckjord, LLC....  Docket No. ER17-1968-000
Duke Energy Carolinas, LLC...  Docket No. ER17-1967-000
Duke Energy Commercial         Docket No. ER17-1970-000
 Enterprises, Inc.
Duke Energy Florida, LLC.....  Docket No. ER17-1971-000
Duke Energy Progress, LLC....  Docket No. ER17-1964-000
Duke Energy Renewable          Docket No. ER17-1972-000
 Services, LLC.
Duke Energy SAM, LLC.........  Docket No. ER17-1973-000
Louisville Gas and Electric    Docket No. ER10-1511-007
 Company.
Kentucky Utilities Company...  Docket No. ER10-2231-006
LG&E Energy Marketing Inc....  Docket No. ER10-1714-009
Florida Power & Light Company  Docket No. ER10-1852-017
Live Oak Solar, LLC..........  Docket No. ER16-1354-003
NextEra Energy Marketing, LLC  Docket No. ER17-838-001
NEPM II, LLC.................  Docket No. ER11-4462-026
River Bend Solar, LLC........  Docket No. ER16-1913-002
White Oak Solar, LLC.........  Docket No. ER16-1293-003
White Pine Solar, LLC........  Docket No. ER16-1277-003
South Carolina Electric & Gas  Docket No. ER10-2498-004
 Company.
Alabama Power Company........  Docket No. ER10-2881-031
Southern Power Company.......  Docket No. ER10-2882-033
Mississippi Power Company....  Docket No. ER10-2883-031
Georgia Power Company........  Docket No. ER10-2884-031
Gulf Power Company...........  Docket No. ER10-2885-031
Oleander Power Project,        Docket No. ER10-2641-030
 Limited Partnership.
Southern Company-Florida, LLC  Docket No. ER10-2663-031
Mankato Energy Center, LLC...  Docket No. ER10-1874-005
Tampa Electric Company.......  Docket No. ER10-1437-006
 


[[Page 21286]]

Order Accepting Simultaneous Transmission Import Limit Values for the 
Southeast Region and Providing Clarification on Simultaneous 
Transmission Import Limit Studies

    1. In June 2017,\1\ CinCap V, LLC, Duke Energy Beckjord, LLC, Duke 
Energy Carolinas, LLC, Duke Energy Commercial Enterprises, Inc., Duke 
Energy Florida, LLC, Duke Energy Progress, LLC, Duke Energy Renewable 
Services, LLC, Duke Energy SAM, LLC; Louisville Gas and Electric 
Company, Kentucky Utilities Company, LG&E Energy Marketing Inc.; 
Florida Power & Light Company, Live Oak Solar, LLC, NextEra Energy 
Marketing, LLC, NEPM II, LLC, River Bend Solar, LLC, White Oak Solar, 
LLC, White Pine Solar, LLC; South Carolina Electric & Gas Company; 
Southern Company Services, Inc. (Southern Company), acting as agent for 
Alabama Power Company, Southern Power Company, Mississippi Power 
Company, Georgia Power Company, Gulf Power Company, and their 
affiliates, Oleander Power Project, Limited Partnership, Southern 
Company--Florida LLC, Mankato Energy Center, LLC; and Tampa Electric 
Company (collectively, the Southeast Transmission Owners) submitted 
updated market power analyses for the Southeast region in accordance 
with the regional reporting schedule.\2\ The Southeast Transmission 
Owners included Simultaneous Transmission Import Limit (SIL) values for 
the December 2014-November 2015 study period for balancing authority 
areas in the Southeast region.
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    \1\ We note that some of the Southeast Transmission Owners 
submitted amendments to their filings.
    \2\ See Market-Based Rates for Wholesale Sales of Electric 
Energy, Capacity and Ancillary Services by Public Utilities, Order 
No. 697, FERC Stats. & Regs. ] 31,252, at P 882, clarified, 121 FERC 
] 61,260 (2007), order on reh'g, Order No. 697-A, FERC Stats. & 
Regs. ] 31,268, clarified, 124 FERC ] 61,055, order on reh'g, Order 
No. 697-B, FERC Stats. & Regs. ] 31,285 (2008), order on reh'g, 
Order No. 697-C, FERC Stats. & Regs. ] 31,291 (2009), order on 
reh'g, Order No. 697-D, FERC Stats. & Regs. ] 31,305 (2010), aff'd 
sub nom. Montana Consumer Counsel v. FERC, 659 F.3d 910 (9th Cir. 
2011), cert. denied, 133 S. Ct. 26 (2012). See also Refinements to 
Policies and Procedures for Market-Based Rates for Wholesale Sales 
of Electric Energy, Capacity and Ancillary Services by Public 
Utilities, Order No. 816, FERC Stats. & Regs. ] 31,374, at P 353 
(2015), order on reh'g, Order No. 816-A, FERC Stats. & Regs. ] 
31,382 (2016).
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    2. In this order, the Commission accepts the SIL values identified 
in Appendix A (Commission-accepted SIL values). These Commission-
accepted SIL values will be used by the Commission to analyze updated 
market power analyses submitted by transmission owners for the 
Southeast region as well as any updated market power analyses filed by 
non-transmission owning sellers in the Southeast region for this study 
period. SIL studies are used as a basis for calculating import 
capability to serve load in the relevant geographic market when 
performing market power analyses. SIL values quantify a study area's 
simultaneous import capability from its aggregated first-tier area. The 
values accepted herein are based on SIL studies submitted by the 
Southeast Transmission Owners with their updated market power analyses. 
The Southeast Transmission Owners' updated market power analyses 
themselves, including any responsive pleadings, are being addressed in 
separate orders in the relevant dockets.
    3. We note that other transmission owners in the Southeast region 
also submitted updated market power analyses. The updated market power 
analyses for those transmission owners have been or will be addressed 
in separate orders in the relevant dockets.\3\
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    \3\ See, e.g., Alcoa Power Generating Inc., Docket No. ER10-
3069-007 (Dec. 1, 2017) (delegated order).
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    4. Additionally in this order, we provide clarification on the 
calculation of SIL values.

I. Background

    5. In Order No. 697, the Commission adopted a regional filing 
schedule for filing updated market power analyses.\4\ The Commission 
explained that the transmission-owning utilities have the information 
necessary to perform SIL studies and therefore determined that such 
utilities would be required to file their updated market power analyses 
in advance of other entities in each region.\5\
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    \4\ Order No. 697, FERC Stats. & Regs. ] 31,252 at P 882.
    \5\ Id. P 889.
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    6. In addition to providing SIL studies for their respective 
balancing authority areas, the Southeast Transmission Owners provided 
SIL studies for their respective first-tier balancing authority areas. 
Specifically, SIL studies were submitted for the following balancing 
authority areas that, collectively, are first-tier to the Southeast 
Transmission Owners: City of Tallahassee, Jacksonville Electric 
Authority, Midcontinent Independent System Operator, Inc. (MISO),\6\ 
PowerSouth Energy Cooperative, South Carolina Public Service Authority 
(Santee Cooper), Seminole Electric Cooperative, and the Tennessee 
Valley Authority.
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    \6\ This order does not address SIL values for the MISO market. 
The SIL values for the MISO market are addressed in a separate 
order. Entergy Arkansas, Inc., Docket No. ER10-1763-003 (Apr. 11, 
2018) (delegated order).
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II. Discussion

    7. We begin by commending the Southeast Transmission Owners for 
coordinating the preparation of their SIL studies. Such coordination 
leads to more accurate and consistent SIL study results. The SIL values 
we accept herein are based on calculations by the Southeast 
Transmission Owners.
    8. These calculations resulted in a few cases where there were 
conflicting SIL values for certain Florida balancing authority 
areas.\7\ In those cases, we have selected the values submitted by the 
Tampa Electric Company.\8\
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    \7\ Conflicting SIL values were submitted for the Florida Power 
& Light Company, Duke Energy Florida, and the Jacksonville Electric 
Authority balancing authority areas.
    \8\ Tampa Electric Company's SIL study utilized case studies 
based on models provided by the Florida Reliability Coordinating 
Council.
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    9. The Southeast Transmission Owners generally performed their SIL 
studies correctly. However, the review of these filings, as well as the 
review of filings for other regions, leads the Commission to conclude 
that it is appropriate to remind sellers of its expectations, and 
provide clarification, with respect to the calculation of SIL values. 
As the Commission has previously stated, each transmission owner should 
utilize the methodologies outlined in its Commission-approved Open 
Access Transmission Tariff (OATT) to calculate its simultaneous import 
capability that would have been available to suppliers in surrounding 
first-tier markets during each seasonal peak.\9\ The Commission has 
stated that transfer capability should also include any other limits 
(such as stability, voltage, capacity benefit margin (CBM), 
transmission reserve margin (TRM)) as defined in the OATT and that 
existed during each seasonal peak.\10\ In addition, the Commission has 
stated that the transmission owner must utilize the Open Access Same-
Time Information System (OASIS) practices consistent with the 
administration of its tariff.\11\ The Commission has clarified that the 
term ``OASIS practices'' refers to the operating practices historically 
used by the first-tier and study area transmission providers to 
calculate and post available transfer capability (ATC) and to evaluate 
requests for firm transmission service.\12\ The Commission has 
specified that the SIL study should

[[Page 21287]]

not deviate from and must reasonably reflect the seller's OASIS 
operating practices.\13\ The Commission emphasizes here that each 
transmission owner's SIL values must reflect TRM and CBM in the same 
manner as utilized to calculate and post ATC and to evaluate requests 
for firm transmission service.\14\
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    \9\ AEP Power Marketing, Inc., 107 FERC ] 61,018, at P 84, order 
on reh'g, 108 FERC ] 61,026 (2004).
    \10\ Id.
    \11\ Order No. 816, FERC Stats. & Regs. ] 31,374 at 154.
    \12\ Id.
    \13\ Order No. 697, FERC Stats. & Regs. ] 31,252 at P 354.
    \14\ The SIL values that Southern Company derived in its January 
16, 2018 sensitivity analysis for the Southern Company balancing 
authority area are consistent with the clarification provided in 
this order and therefore are the SIL values accepted by the 
Commission.
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    10. The Commission will use the Commission-accepted SIL values 
identified in Appendix A when reviewing the pending updated market 
power analyses submitted by transmission owners in the Southeast region 
as well as any updated market power analyses filed by non-transmission 
owning sellers in the Southeast region for this study period. Future 
filers submitting screens for the balancing authority areas and study 
period identified in Appendix A are encouraged to use these Commission-
accepted SIL values. In the alternative, a filer may propose different 
SIL values provided that the filer's accompanying SIL studies comply 
with Commission directives and that the filer fully supports the values 
used and explains why the Commission should consider a different SIL 
value for a particular study area other than the Commission-accepted 
SIL values provided in Appendix A. In the event that the results \15\ 
for one or more of a particular seller's screens differ if the seller-
supplied SIL value is used instead of the Commission-accepted SIL 
value, the order on that particular filing will examine the seller-
supplied SIL study and address whether the seller-supplied SIL value is 
acceptable. However, when the overall results of the screens would be 
unchanged, i.e., the seller would pass using either set of SIL values 
or fail using either set of SIL values, the Commission-accepted SIL 
values found in Appendix A will be used and the order would not address 
the seller-supplied SIL values.
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    \15\ Results refer to the results of the market share and/or 
pivotal supplier screens. For example, if a seller fails the market 
share screen for a particular season in a particular market using 
either SIL value, we would consider the result unchanged. Similarly, 
if the seller passes the screen using either value, the result is 
also unchanged.
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    The Commission orders:
    (A) The specific Commission-accepted SIL values identified in 
Appendix A to this order are hereby accepted for purposes of analyzing 
updated market power analyses for the Southeast region, as discussed in 
the body of this order.
    (B) The Secretary is hereby directed to publish a copy of this 
order in the Federal Register.

    By the Commission. Chairman McIntyre is not participating.

    Issued: May 1, 2018.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2018-09854 Filed 5-8-18; 8:45 am]
 BILLING CODE 6717-01-P