80 FR 38679 - Kingfisher Wind, LLC; Order Granting Market-Based Rate Authorization and Request for Waivers and Providing Guidance on Vertical Market Power Representations

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 80, Issue 129 (July 7, 2015)

Page Range38679-38684
FR Document2015-16589

Federal Register, Volume 80 Issue 129 (Tuesday, July 7, 2015)
[Federal Register Volume 80, Number 129 (Tuesday, July 7, 2015)]
[Notices]
[Pages 38679-38684]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16589]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. ER15-1308-000; ER15-1308-001]


Kingfisher Wind, LLC; Order Granting Market-Based Rate 
Authorization and Request for Waivers and Providing Guidance on 
Vertical Market Power Representations

Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, 
Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable.

    1. In this order, we grant Kingfisher Wind, LLC (Kingfisher Wind) 
authority to make wholesale sales of electric energy, capacity, and 
ancillary services at market-based rates, effective June 30, 2015, as 
requested. Also, as discussed below, we grant Kingfisher Wind's request 
for waiver of the Commission's requirements to file an Open Access 
Transmission Tariff (OATT), to establish and maintain an Open Access 
Same-Time Information System (OASIS), and to comply with the 
Commission's Standards of Conduct. In addition, as discussed below, we 
provide guidance with regard to interconnection facilities that qualify 
for the blanket OATT waiver provided in Order No. 807.\1\ We also grant 
Kingfisher Wind's request for other waivers commonly granted to market-
based rate sellers, except as noted herein.
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    \1\ Subsequent to the filing of this application, the Commission 
issued Order No. 807, which will be effective June 30, 2015. In 
Order No. 807, the Commission amended its regulations to waive the 
OATT requirements of 18 CFR 35.28, the OASIS requirements of part 
37, and the Standards of Conduct requirements of part 358, under 
certain conditions, for entities that own interconnection 
facilities. See Open Access and Priority Rights on Interconnection 
Customer's Interconnection Facilities, Order No. 807, FERC Stats. & 
Regs. ] 31,367 (2015).
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    2. Additionally, we find that Kingfisher Wind meets the criteria 
for a Category 1 seller in the Northwest, Northeast, Southwest, 
Southeast, and Central regions and a Category 2 seller in the Southwest 
Power Pool (SPP) region, and is so designated. Kingfisher Wind must 
file updated market power analyses for the SPP region in compliance 
with the regional reporting schedule adopted in Order No. 697.\2\
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    \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 PP 848-850, clarified, 121 
FERC ] 61,260 (2007) (Clarification Order), 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. Mont. Consumer Counsel v. 
FERC, 659 F.3d 910 (9th Cir. 2011), cert. denied, 133 S. Ct. 26 
(2012).

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[[Page 38680]]

I. Background

    3. On March 17, 2015, as amended May 18, 2015, pursuant to section 
205 of the Federal Power Act (FPA),\3\ Kingfisher Wind filed an 
application for market-based rate authority with an accompanying tariff 
providing for the sale of electric energy, capacity, and ancillary 
services at market-based rates.\4\
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    \3\ 16 U.S.C. 824d (2012).
    \4\ Kingfisher Wind requests authorization to sell ancillary 
services in the markets administered by PJM Interconnection, L.L.C., 
New York Independent System Operator, Inc., ISO New England Inc., 
California Independent System Operator Corp., Midcontinent 
Independent System Operator, Inc. (MISO), and SPP, as well as 
authorization to engage in the sale of certain ancillary services as 
a third-party provider in other markets.
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    4. Kingfisher Wind states that it owns a 298 megawatt (MW) wind 
generation facility located in Canadian and Kingfisher Counties, 
Oklahoma (the Project), within the SPP market.
    5. Kingfisher Wind states that it will also own limited 
interconnection facilities which will consist of 34.5 kilovolt (kV) 
collection lines and related facilities, including a collection 
substation, transformers and disconnect switches, and a share of a 25-
mile, 345 kV generator tie line and related equipment and facilities 
(Shared Facilities) \5\ that are necessary to interconnect the Project 
to the 345 kV Cimarron substation owned by OG&E and the transmission 
system operated by SPP.
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    \5\ Kingfisher Wind states that it will acquire 30 percent 
tenancy-in-common interests of the Shared Facilities from Canadian 
Hills Wind, LLC (Canadian Hills). Kingfisher adds that Canadian 
Hills is an exempt wholesale generator which owns and operates a 
wind generation facility that is interconnected with the Oklahoma 
Gas and Electric Company (OG&E) transmission system via the Shared 
Facilities. Kingfisher Wind states that the Commission granted 
Canadian Hills waiver of the OATT requirement. See Canadian Hills 
Wind, LLC, 143 FERC ] 61,261 (2013); see also Canadian Hills Wind, 
LLC, Docket No. ER15-1372-000 (May 14, 2015) (delegated letter 
order).
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    6. Kingfisher Wind states that it will utilize the interconnection 
facilities solely to interconnect the Project to the transmission 
system operated by SPP. Kingfisher Wind states that the interconnection 
facilities do not comprise an integrated transmission system and are 
limited and discrete. Kingfisher Wind requests that the Commission 
waive the requirements under Order Nos. 888,\6\ 889,\7\ 890,\8\ 
2004,\9\ and 717,\10\ and section 35.28,\11\ and Parts 37 \12\ and 358 
\13\ of the Commission's regulations for all of the limited 
interconnection facilities, including but not limited to, the Shared 
Facilities.
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    \6\ Promoting Wholesale Competition Through Open Access Non-
Discriminatory Transmission Services by Public Utilities; Recovery 
of Stranded Costs by Public Utilities and Transmitting Utilities, 
Order No. 888, FERC Stats. & Regs. ] 31,036 (1996), order on reh'g, 
Order No. 888-A, FERC Stats. & Regs. ] 31,048, order on reh'g, Order 
No. 888-B, 81 FERC ] 61,248 (1997), order on reh'g, Order No. 888-C, 
82 FERC ] 61,046 (1998), aff'd in relevant part sub nom. 
Transmission Access Policy Study Group v. FERC, 225 F.3d 667 (D.C. 
Cir. 2000), aff'd sub nom. New York v. FERC, 535 U.S. 1 (2002).
    \7\ Open Access Same-Time Information System and Standards of 
Conduct, Order No. 889, FERC Stats. & Regs. ] 31,035 (1996), order 
on reh'g, Order No. 889-A, FERC Stats. & Regs. ] 31,049, reh'g 
denied, Order No. 889-B, 81 FERC ] 61,253 (1997).
    \8\ Preventing Undue Discrimination and Preference in 
Transmission Service, Order No. 890, FERC Stats. & Regs. ] 31,241, 
order on reh'g, Order No. 890-A, FERC Stats. & Regs. ] 31,261 
(2007), order on reh'g, Order No. 890-B, 123 FERC ] 61,299 (2008), 
order on reh'g, Order No. 890-C, 126 FERC ] 61,228, order on 
clarification, Order No. 890-D, 129 FERC ] 61,126 (2009).
    \9\ Standards of Conduct for Transmission Providers, Order No. 
2004, FERC Stats. & Regs. ] 31,155 (2003), order on reh'g, Order No. 
2004-A, FERC Stats. & Regs. ] 31,161, order on reh'g, Order No. 
2004-B, FERC Stats. & Regs. ] 31,166, order on reh'g, Order No. 
2004-C, FERC Stats. & Regs. ] 31,172 (2004), order on reh'g, Order 
No. 2004-D, 110 FERC ] 61,320 (2005), vacated and remanded as it 
applies to natural gas pipelines sub nom. National Fuel Gas Supply 
Corp. v. FERC, 468 F.3d 831 (D.C. Cir. 2006); see Standards of 
Conduct for Transmission Providers, Order No. 690, FERC Stats. & 
Regs. ] 31,237, order on reh'g, Order No. 690-A, FERC Stats. & Regs. 
] 31,243 (2007).
    \10\ Standards of Conduct for Transmission Providers, Order No. 
717, FERC Stats. & Regs. ] 31,280 (2008), order on reh'g, Order No. 
717-A, FERC Stats. & Regs. ] 31,297, order on reh'g, Order No. 717-
B, 129 FERC ] 61,123 (2009), order on reh'g, Order No. 717-C, 131 
FERC ] 61,045 (2010), order on reh'g, Order No. 717-D, 135 FERC ] 
61,017 (2011).
    \11\ 18 CFR 35.28 (2014).
    \12\ 18 CFR 37 (2014).
    \13\ 18 CFR 358 (2014).
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    7. Kingfisher Wind states that it is a wholly-owned subsidiary of 
FR Kingfisher Holdings II LLC, which is an indirect subsidiary of First 
Reserve Energy Infrastructure Fund II, L.P. (Fund II), which is 
controlled by senior officers of First Reserve, a global private equity 
firm focused on the energy industry. Kingfisher Wind states that Fund 
II is managed and controlled by its general partner, First Reserve 
Energy Infrastructure GP II, L.P., which in turn, is managed and 
controlled by its general partner, First Reserve Energy Infrastructure 
G.P. II Limited (First Reserve GP II). Kingfisher Wind states that its 
affiliates that own or control generation facilities in the United 
States are either exempt wholesale generators or owners of qualifying 
facilities under the Public Utility Regulatory Policies Act of 
1978.\14\ Kingfisher Wind represents that it is affiliated with 
approximately 918 MW of generation capacity in the SPP market, all of 
which is fully committed under long-term power purchase agreements.


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    \14\ 16 U.S.C. 2601 et seq. (2012).
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II. Notice of Filings

    8. Notices of Kingfisher Wind's filings were published in the 
Federal Register,\15\ with interventions and protests due on or before 
June 9, 2015. None was filed.
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    \15\ 80 FR 15,779 (2015); 80 FR 30,223 (2015).
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    9. Notice of Kingfisher Wind's request for blanket authorization 
under part 34 of the Commission's regulations was separately published 
in the Federal Register,\16\ with interventions or protests due on or 
before April 7, 2015. None was filed.
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    \16\ 80 FR 15,784 (2015).
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III. Discussion

    10. As discussed below, we will grant Kingfisher Wind's request for 
authorization to make wholesale sales of electric energy, capacity, and 
ancillary services at market-based rates and we will accept its market-
based rate tariff, effective June 30, 2015, as requested.\17\ We will 
also grant Kingfisher Wind's request for certain waivers.
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    \17\ We note that Kingfisher Wind is not being granted authority 
to make third-party sales of operating reserves to a public utility 
that is purchasing ancillary services to satisfy its own open access 
transmission tariff requirements to offer ancillary services to its 
own customers. If Kingfisher Wind seeks such authority, it must make 
the required showing and receive Commission authorization prior to 
making such sales. See Third-Party Provision of Ancillary Services; 
Accounting and Financial Reporting for New Electric Storage 
Technologies, Order No. 784, FERC Stats. & Regs. ] 31,349, at PP 
200-202 (2013), order on clarification, Order No. 784-A, 146 FERC ] 
61,114 (2014).
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A. Market-Based Rate Authorization

    11. The Commission allows power sales at market-based rates if the 
seller and its affiliates do not have, or have adequately mitigated, 
horizontal and vertical market power.\18\
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    \18\ Order No. 697, FERC Stats. & Regs. ] 31,252 at PP 62, 399, 
408, 440.
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1. Horizontal Market Power

    12. The Commission has adopted two indicative screens for assessing 
horizontal market power: the pivotal supplier screen and the wholesale 
market share screen.\19\ The Commission has stated that passage of both 
screens establishes a rebuttable presumption that the applicant does 
not possess

[[Page 38681]]

horizontal market power, while failure of either screen creates a 
rebuttable presumption that the applicant has horizontal market 
power.\20\
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    \19\ Id. P 62.
    \20\ Id. PP 33, 62-63.
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    13. Kingfisher Wind represents that it relies on Westar Energy, 
Inc.'s recently accepted market power analysis to demonstrate that 
Kingfisher Wind passes both the pivotal supplier and the wholesale 
market share screens for the SPP market.\21\
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    \21\ See Westar Energy, Inc., Docket No. ER14-724-000 (Feb. 28, 
2014) (delegated letter order). Kingfisher Wind relies on historical 
data for the SPP market for the study period of December 2011 
through November 2012 contained in the Westar pivotal supplier and 
market share screens study. Kingfisher Wind states that the use of 
more recent data (i.e., December 2012 through November 2013) would 
not result in significantly higher market shares because conditions 
would not change materially over one year. See Clarification Order, 
121 FERC ] 61,260 at P 12.d.
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    14. Based on Kingfisher Wind's representations, we find that 
Kingfisher Wind satisfies the Commission's requirements for market-
based rates regarding horizontal market power.

2. Vertical Market Power

    15. In cases where a public utility, or any of its affiliates, 
owns, operates, or controls transmission facilities, the Commission 
requires that there be a Commission-approved OATT on file or that the 
seller has received waiver of the OATT requirement before granting a 
seller market-based rate authorization.\22\ Kingfisher Wind states that 
neither Kingfisher Wind nor its affiliates owns transmission facilities 
other than those limited and discrete facilities that are necessary to 
interconnect generation facilities to the transmission grid. As 
discussed more fully below, the Commission will grant Kingfisher Wind's 
request for waiver of the requirement to have an OATT on file for the 
interconnection facilities.
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    \22\ Order No. 697, FERC Stats. & Regs. ] 31,252 at P 408.
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    16. The Commission also considers a seller's ability to erect other 
barriers to entry as part of the vertical market power analysis.\23\ 
The Commission requires a seller to provide a description of its 
ownership or control of, or affiliation with an entity that owns or 
controls, intrastate natural gas transportation, intrastate natural gas 
storage or distribution facilities; sites for new generation capacity 
development; and physical coal supply sources and ownership of or 
control over who may access transportation of coal supplies 
(collectively, inputs to electric power production).\24\ The Commission 
also requires sellers to make an affirmative statement that they have 
not erected barriers to entry into the relevant market and will not 
erect barriers to entry into the relevant market.\25\ The Commission 
adopted a rebuttable presumption that the ownership or control of, or 
affiliation with any entity that owns or controls, inputs to electric 
power production does not allow a seller to raise entry barriers but 
will allow intervenors to demonstrate otherwise.\26\
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    \23\ Id. P 440.
    \24\ Order No. 697-A, FERC Stats. & Regs. ] 31,268 at P 176.
    \25\ Order No. 697, FERC Stats. & Regs. ] 31,252 at P 447.
    \26\ Id. P 446.
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    17. Regarding other barriers to entry, Kingfisher Wind states that 
neither it nor any of its affiliates owns or controls physical coal 
supply sources, entities that may access transportation of coal 
supplies, or sites to develop new generation capacity. Kingfisher Wind 
states that it has affiliates that own or control intrastate natural 
gas transportation, storage or distribution facilities, but that these 
assets will not allow Kingfisher Wind to erect barriers to entry.\27\
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    \27\ Kingfisher Wind states that it is affiliated with: (1) 
Crestwood Midstream Partners, LP, which owns gathering pipelines and 
natural gas storage facilities located in a number of geographic 
regions, including some gathering pipelines located in or near SPP; 
(2) the Arthur C. Nielsen Pipeline System and Clearfield Pipeline 
System, intrastate natural gas pipelines located within 
Pennsylvania; and (3) FREIF Caliber Holdings, which owns gathering 
pipelines located in MISO. See Kingfisher Wind May 18 Supplement at 
2-3.
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    18. Finally, consistent with Order No. 697, Kingfisher Wind 
affirmatively states that it and its affiliates have not erected, and 
will not erect, barriers to entry in SPP.
    19. Based on Kingfisher Wind's representations, we find that 
Kingfisher Wind satisfies the Commission's requirements for market-
based rates regarding vertical market power.

B. Waiver Requests

1. OATT, OASIS, and Standards of Conduct
    20. Kingfisher Wind seeks waiver of the requirements to file an 
OATT, establish and maintain an OASIS, and abide by the Standards of 
Conduct with respect to the interconnection facilities that it 
owns.\28\ In support, Kingfisher Wind represents that the 
interconnection facilities are limited and discrete and that it will 
utilize them solely to interconnect the Project to the transmission 
system operated by SPP. Kingfisher Wind further states that the 
interconnection facilities do not comprise an integrated transmission 
system.
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    \28\ Notwithstanding the issuance of Order No. 807, Kingfisher 
Wind requests that the Commission rule on its requested waiver 
herein. Kingfisher Wind May 18 Supplement at n.5.
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    21. Order Nos. 888 and 890 and section 35.28 of the Commission's 
regulations require public utilities that own, operate, or control 
facilities used for the transmission of electric energy in interstate 
commerce to file an OATT. Order No. 889 and part 37 of the Commission's 
regulations require public utilities to establish and maintain an 
OASIS. Order Nos. 889, 2004, and 717 and Part 358 of the Commission's 
regulations require public utilities to abide by certain Standards of 
Conduct.\29\ In prior orders, the Commission has enunciated the 
standards for exemption from some or all of the requirements of Order 
Nos. 888, 889, and 890.\30\ The Commission has stated that the criteria 
for waiver of the requirements of Order No. 890 and Order No. 2004 are 
unchanged from those used to evaluate requests for waiver under Order 
Nos. 888 and 889.\31\ Order No. 717 did not change those criteria.\32\
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    \29\ Order No. 889, FERC Stats. & Regs. ] 31,035 at 31,590; 
Order No. 2004, FERC Stats. & Regs. ] 31,155 at P 16; Order No. 717, 
FERC Stats. & Regs. ] 31,280 at P 313.
    \30\ See, e.g., Black Creek Hydro, Inc., 77 FERC ] 61,232, at 
61,941 (1996) (Black Creek); Entergy Mississippi, Inc., 112 FERC ] 
61,228, at P 22 (2005) (Entergy).
    \31\ See Alcoa Power Generating Inc., 120 FERC ] 61,035, at P 3 
(2007); Alcoa Power Generating Inc., 108 FERC ] 61,243, at P 27 
(2004).
    \32\ See Order No. 717, FERC Stats. & Regs. ] 31,280 at PP 31-
33.
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    22. The Commission may grant requests for waiver of the obligation 
to file an OATT to public utilities that can show that they own, 
operate, or control only limited and discrete transmission facilities 
(facilities that do not form an integrated transmission grid), until 
such time as the public utility receives a request for transmission 
service. Should the public utility receive such a request, the 
Commission has determined that the public utility must file with the 
Commission a pro forma tariff within 60 days of the date of the 
request, and must comply with any additional requirements that are 
effective on the date of the request.\33\
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    \33\ Black Creek, 77 FERC at 61,941.
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    23. The Commission has also determined that waiver of the 
requirement to establish an OASIS and abide by the Standards of Conduct 
would be appropriate for a public utility if the applicant: (1) Owns, 
operates, or controls only limited and discrete transmission facilities 
(rather than an integrated transmission grid); or (2) is a small public 
utility that owns, operates, or controls an integrated transmission 
grid, unless other circumstances are

[[Page 38682]]

present that indicate that a waiver would not be justified.\34\ The 
Commission has held that waiver of Order No. 889 will remain in effect 
until the Commission takes action in response to a complaint to the 
Commission that an entity evaluating its transmission needs could not 
get the information necessary to complete its evaluation (for OASIS 
waivers) or an entity complains that the public utility has unfairly 
used its access to information about transmission to benefit the 
utility or its affiliate (for Standards of Conduct waivers).\35\
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    \34\ Id. Although the Commission originally precluded waiver of 
the requirements for OASIS and the Standards of Conduct for a small 
public utility that is a member of a tight power pool, in Black 
Hills Power, Inc., 135 FERC ] 61,058, at PP 2-3 (2011) (Black 
Hills), the Commission explained that membership in a tight power 
pool is no longer a factor in the determination for waiver of 
Standards of Conduct. Moreover, Black Hills did not affect waivers 
based on a public utility disposing of no more than 4 million 
megawatt-hours annually.
    \35\ Entergy, 112 FERC ] 61,228 at P 23 (citing Cent. Minn. Mun. 
Power Agency, 79 FERC ] 61,260, at 62,127 (1997) (Central 
Minnesota); Easton Utils. Comm'n, 83 FERC ] 61,334, at 62,343 (1998) 
(Easton)).
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    24. Based on the statements in Kingfisher Wind's application, we 
find that its interconnection facilities qualify as limited and 
discrete. Kingfisher Wind will use the facilities solely to 
interconnect the Project to the transmission grid. Accordingly, we will 
grant Kingfisher Wind waiver of the requirements of Order Nos. 888 and 
890 and section 35.28 of the Commission's regulations to have an OATT 
on file with respect to the interconnection facilities. However, if 
Kingfisher Wind receives a request for transmission service, it must 
file with the Commission a pro forma OATT within 60 days of the date of 
the request.\36\
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    \36\ Black Creek, 77 FERC at 61,941.
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    25. The Commission will also grant Kingfisher Wind waiver of the 
requirements of Order No. 889 and part 37 of the Commission's 
regulations with respect to OASIS and Order Nos. 889, 2004, and 717 and 
Part 358 with respect to the Standards of Conduct. We note that 
Kingfisher Wind's waiver of the requirement to establish an OASIS will 
remain in effect until the Commission takes action in response to a 
complaint to the Commission that an entity evaluating its transmission 
needs could not get the information necessary to complete its 
evaluation.\37\ Likewise, Kingfisher Wind's waiver of the Standards of 
Conduct will remain in effect unless and until the Commission takes 
action on a complaint by an entity that Kingfisher Wind has unfairly 
used its access to information to unfairly benefit itself or its 
affiliates.\38\
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    \37\ Entergy, 112 FERC ] 61,228 at P 23 (citing Central 
Minnesota, 79 FERC at 62,127; Easton, 83 FERC at 62,343).
    \38\ Id. Kingfisher Wind must notify the Commission if there is 
a material change in facts that affects its waiver within 30 days of 
the date of such change. Material Changes in Facts Underlying Waiver 
of Order No. 889 and Part 358 of the Commission's Regulations, 127 
FERC ] 61,141, at P 5 (2009).
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    26. Given that Order No. 807 will be effective June 30, 2015, we 
take this opportunity to explain how market-based rate applicants and 
sellers may demonstrate a lack of vertical market power once the 
blanket waiver provided for in 18 CFR 35.28(d)(2) takes effect. In 
Order No. 807, the Commission modified its policy to provide an 
additional method for obtaining waiver of the OATT requirements. 
Specifically, the Commission stated that a market-based rate seller or 
any of its affiliates that own, operate, or control transmission 
facilities may satisfy the vertical market power requirements in 18 CFR 
35.37(d) by one of the following: (1) Have a Commission-approved OATT 
on file; (2) receive waiver of the OATT requirement under 18 CFR 
35.28(d)(1); or (3) satisfy the requirements for a blanket waiver under 
18 CFR 35.28(d)(2).\39\
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    \39\ Order No. 807, FERC Stats. & Regs. ] 31,367 at P 57.
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    27. We provide guidance herein that an applicant that qualifies for 
the blanket OATT waiver under 18 CFR 35.28(d)(2) should affirm in its 
market-based rate application that it qualifies for the blanket OATT 
waiver. As the Commission stated in Order No. 807, ``[s]uch a waiver is 
justified because the usually limited and discrete nature of 
[Interconnection Customer's Interconnection Facilities (ICIF)] and 
ICIF's dedicated interconnection purpose means that such facilities do 
not typically present the concerns about discriminatory conduct that 
the Commission's OATT, OASIS, and Standards of Conduct requirements 
were intended to address.'' \40\ In accordance with Order No. 807, the 
waivers referenced in 18 CFR 35.28(d)(2) shall be deemed in effect 
unless revoked as of the date the public utility ceases to satisfy the 
qualifications of 18 CFR 35.28(d)(2), and also may be revoked by the 
Commission if the Commission determines that it is in the public 
interest to do so.\41\ Thus, applicants who attest that they qualify 
for the blanket authorization do not need to request, nor should they 
request, a waiver of the OATT, OASIS and Standards of Conduct 
requirements. We also note that the Commission stated in Order No. 807 
that an entity that has already been issued a waiver of the OATT, OASIS 
and Standards of Conduct requirements and that is eligible for the 
blanket waiver under Order No. 807 will be deemed to be operating under 
the blanket waiver without further filings necessary with respect to 
the previously-issued waiver.\42\
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    \40\ Id. P 55.
    \41\ Id. P 101 (``the [blanket] waiver would be deemed to be 
revoked as of the date the public utility ceases to satisfy the 
qualifications for such waiver. . . . [I]f the ICIF that are covered 
by a blanket waiver become integrated into a transmission system 
such that they can no longer be considered ICIF, the blanket waiver 
would be deemed to be revoked.''). After revocation of its waivers, 
the public utility must comply with the requirements that had been 
waived within 60 days of revocation. Id. at regulatory text (to be 
codified at 18 CFR 35.28(d)(2)(i)).
    \42\ Id. P 176 (referencing P 89, which states, in part, that 
``if an entity has previously received a specific waiver of the OATT 
and related obligations pursuant to the Commission's `limited and 
discrete' or `small entity' standards, the blanket waiver will 
supersede the existing waiver'').
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    28. As stated above, Kingfisher Wind specifically requests that the 
Commission rule on its requested OATT waiver, and we hereby grant this 
waiver.
2. Other Waivers and Authorizations
    29. Kingfisher Wind also requests the following waivers and 
authorizations: (1) Waiver of the filing requirements of subparts B and 
C of part 35 of the Commission's regulations, except sections 35.12(a), 
35.13(b), 35.15, and 35.16; (2) waiver of the accounting and other 
requirements of parts 41, 101, and 141 of the Commission's regulations, 
except sections 141.14 and 141.15; and (3) blanket authorization under 
section 204 of the FPA \43\ and Part 34 of the Commission's regulations 
for all future issuances of securities and assumptions of liability.
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    \43\ 16 U.S.C. 824c (2012).
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    30. The Commission will grant the requested waivers and 
authorizations consistent with those granted to other entities with 
market-based rate authorizations.\44\ Notwithstanding the

[[Page 38683]]

waiver of the accounting and reporting requirements, the Commission 
expects Kingfisher Wind to keep its accounting records in accordance 
with generally accepted accounting principles.
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    \44\ We note that the Commission has examined and approved the 
continued applicability of the waiver of its accounting and 
reporting requirements in parts 41, 101, and 141 of the Commission's 
regulations, as well as the continued applicability of the blanket 
authorization for the issuance of securities and the assumption of 
liabilities in part 34 of the Commission's regulations. See Order 
No. 697, FERC Stats. & Regs. ] 31,252 at PP 984-985 (regarding 
waiver of parts 41, 101, and 141) and PP 999-1000 (regarding blanket 
approval under part 34). However, waiver of the provisions of part 
101 that apply to hydropower licensees is not granted with respect 
to licensed hydropower projects. Hydropower licensees are required 
to comply with the requirements of the Uniform System of Accounts 
pursuant to 18 CFR part 101 to the extent necessary to carry out 
their responsibilities under part I of the FPA. We further note that 
a licensee's status as a market-based rate seller under part II of 
the FPA does not exempt it from its accounting responsibilities as a 
licensee under part I of the FPA. See Seneca Gen., LLC, 145 FERC ] 
61,096, at P 23 n.20 (2013) (citing Trafalgar Power Inc., 87 FERC ] 
61,207, at 61,798 (1999) (noting that ``all licensees are required 
to comply with the requirements of the Uniform System of Accounts to 
the extent necessary to carry out their responsibilities under 
[s]ections 4(b), 10(d) and 14 of the FPA'')).
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C. Reporting Requirements

    31. An entity with market-based rate authorization must file an 
Electric Quarterly Report (EQR) with the Commission, consistent with 
Order Nos. 2001 \45\ and 768,\46\ to fulfill its responsibility under 
FPA section 205(c) \47\ to have rates on file in a convenient form and 
place.\48\ Kingfisher Wind must file EQRs electronically with the 
Commission consistent with the procedures set forth in Order No. 
770.\49\ Failure to timely and accurately file an EQR is a violation of 
the Commission's regulations for which Kingfisher Wind may be subject 
to refund, civil penalties, and/or revocation of market-based rate 
authority.\50\
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    \45\ Revised Public Utility Filing Requirements, Order No. 2001, 
FERC Stats. & Regs. ] 31,127, reh'g denied, Order No. 2001-A, 100 
FERC ] 61,074, reh'g denied, Order No. 2001-B, 100 FERC ] 61,342, 
order directing filing, Order No. 2001-C, 101 FERC ] 61,314 (2002), 
order directing filing, Order No. 2001-D, 102 FERC ] 61,334, order 
refining filing requirements, Order No. 2001-E, 105 FERC ] 61,352 
(2003), order on clarification, Order No. 2001-F, 106 FERC ] 61,060 
(2004), order revising filing requirements, Order No. 2001-G, 120 
FERC ] 61,270, order on reh'g and clarification, Order No. 2001-H, 
121 FERC ] 61,289 (2007), order revising filing requirements, Order 
No. 2001-I, FERC Stats. & Regs. ] 31,282 (2008).
    \46\ Electricity Mkt. Transparency Provisions of Section 220 of 
the Fed. Power Act, Order No. 768, FERC Stats. & Regs. ] 31,336 
(2012), order on reh'g, Order No. 768-A, 143 FERC ] 61,054 (2013).
    \47\ 16 U.S.C. 824d(c) (2012).
    \48\ See Revisions to Electric Quarterly Report Filing Process, 
Order No. 770, FERC Stats. & Regs. ] 31,338, at P 3 (2012) (citing 
Order No. 2001, FERC Stats. & Regs. ] 31,127 at P 31).
    \49\ Order No. 770, FERC Stats. & Regs. ] 31,338.
    \50\ The exact filing dates for these reports are prescribed in 
18 CFR 35.10b (2014). Forfeiture of market-based rate authority may 
require a new application for market-based rate authority if the 
applicant wishes to resume making sales at market-based rates.
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    32. Additionally, Kingfisher Wind must 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.\51\
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    \51\ Reporting Requirement for Changes in Status for Public 
Utilities with Market-Based Rate Authority, Order No. 652, FERC 
Stats. & Regs. ] 31,175, order on reh'g, 111 FERC ] 61,413 (2005); 
18 CFR 35.42 (2014).
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    33. In Order No. 697, the Commission created two categories of 
sellers.\52\ Category 1 sellers are not required to file regularly 
scheduled updated market power analyses. Category 1 sellers are 
wholesale power marketers and wholesale power producers that own or 
control 500 MW or less of generation in aggregate per region; that do 
not own, operate, or control transmission facilities other than limited 
equipment necessary to connect individual generation facilities to the 
transmission grid (or have been granted waiver of the requirements of 
Order No. 888); that are not affiliated with anyone that owns, 
operates, or controls transmission facilities in the same region as the 
seller's generation assets; that are not affiliated with a franchised 
public utility in the same region as the seller's generation assets; 
and that do not raise other vertical market power issues.\53\ Sellers 
that do not fall into Category 1 are designated as Category 2 sellers 
and are required to file updated market power analyses.\54\
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    \52\ Order No. 697, FERC Stats. & Regs. ] 31,252 at P 848.
    \53\ 18 CFR 35.36(a) (2014).
    \54\ Order No. 697, FERC Stats. & Regs. ] 31,252 at P 850.
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    34. Kingfisher Wind requests Category 1 seller status in the 
Northwest, Northeast, Southwest, Southeast, and Central regions, and 
Category 2 seller status in the SPP region. Kingfisher Wind states that 
it is located in the SPP region, where it and its affiliates own or 
control more than 500 MW of generation capacity. Kingfisher Wind 
represents that it does not own or control generation in any other 
region. Kingfisher Wind further represents that neither it nor its 
affiliates own, operate or control transmission facilities other than 
limited facilities necessary to connect individual generating 
facilities to the transmission grid. Kingfisher Wind also represents 
that it is not affiliated with any entity that owns, operates or 
controls transmission facilities in the same region as its generation 
assets nor with a franchised public utility in the same region as its 
generation assets. Finally, Kingfisher Wind represents that neither it 
nor its affiliates raise other vertical market power concerns.
    35. Based on Kingfisher Wind's representations, we grant Kingfisher 
Wind Category 1 seller status in the Northwest, Northeast, Southwest, 
Southeast and Central regions and Category 2 seller status in the SPP 
region. Kingfisher Wind must file an updated market power analysis for 
the SPP region in compliance with the regional reporting schedule 
adopted in Order No. 697.\55\ The Commission also reserves the right to 
require such an analysis at any time for any region.\56\
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    \55\ Id.
    \56\ Id. P 853.
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    The Commission orders:
    (A) Kingfisher Wind's market-based rate tariff is hereby accepted 
for filing, effective June 30, 2015, as requested, as discussed in the 
body of this order.
    (B) Kingfisher Wind's request for waiver of the requirements to 
file an OATT, to establish and maintain an OASIS, and to comply with 
the Standards of Conduct is hereby granted, as discussed in the body of 
this order.
    (C) Waiver of the provisions of subparts B and C of part 35 of the 
Commission's regulations, with the exception of sections 35.12(a), 
35.13(b), 35.15, and 35.16, is hereby granted.
    (D) Waiver of part 101 of the Commission's regulations is hereby 
granted, with the exception that waiver of the provisions of Part 101 
that apply to hydropower licensees is not granted with respect to 
licensed hydropower projects. Waiver of parts 41 and 141 of the 
Commission's regulations is hereby granted, with the exception of 
sections 141.14 and 141.15.
    (E) Blanket authorization under part 34 of the Commission's 
regulations for all future issuances of securities and assumptions of 
liability is hereby granted. Kingfisher Wind is hereby authorized to 
issue securities and assume obligations or liabilities as guarantor, 
indorser, surety, or otherwise in respect of any security of another 
person; provided that such issue or assumption is for some lawful 
object within the corporate purposes of Kingfisher Wind, compatible 
with the public interest, and reasonably necessary or appropriate for 
such purposes.
    (F) The Commission reserves the right to modify this order to 
require a further showing that neither the public nor private interests 
will be adversely affected by continued Commission approval of 
Kingfisher Wind's issuance of securities or assumptions of liability.
    (G) Kingfisher Wind is hereby required to file EQRs in compliance 
with Order Nos. 2001 and 768. If the effective date of Kingfisher 
Wind's market-based rate tariff falls within a quarter of the year that 
has already expired, Kingfisher Wind's EQRs for the expired quarter are 
due within 30 days of the date of this order.
    (H) The Secretary is hereby directed to publish a copy of this 
order in the Federal Register.

    By the Commission.


[[Page 38684]]


    Issued: June 30, 2015.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2015-16589 Filed 7-6-15; 8:45 am]
BILLING CODE 6717-01-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 38679 

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