Luminant Justifies Reliance On Statutory Exemption In Determining MW Used For Market Share Calc.
January 11,2018
In a response to an RFI from Staff of the Texas PUC, Luminant has provided justification for its exclusion from the numerator, in a calculation of its market share following a proposed acquisition of Dynegy, certain megawatts
PURA § 39.154(e) provides that, in determining the percentage shares of installed generation capacity owned and controlled by a power generation company under this section and Section 39.156, the commission shall, for purposes of calculating the numerator, reduce the installed generation capacity owned and controlled by that power generation company by the installed generation capacity of any "grandfathered facility" within an ozone nonattainment area as of September 1, 1999, for which that power generation company has commenced complying or made a binding commitment to comply with Section 39.264.
Luminant had in its original application stated that the 915 MWs from its Lake Hubbard Power Plant is statutorily exempt, and thus excluded from the numerator, under PURA § 39.154(e). Staff had noted that the exclusion in subsection 39.154(e), "only applies to a power generation company that is affiliated with an electric utility that owned and controlled more than 27% of the installed generation capacity in the power region on January 1, 1999," and had directed Luminant to identify the electric utility that owned and controlled more than 27% of the installed generation capacity in ERCOT on January 1, 1999 with which Luminant is currently affiliated.
Luminant in its RFI response provides support for its contention that PURA § 39.154(e) continues to apply to Luminant
"TXU Electric Company (TXU Electric) is the bundled, vertically integrated electric utility that owned and controlled more than 27% of the installed generation capacity in ERCOT on January 1, 1999 and with which Luminant is currently affiliated as a successor in interest to TXU Electric's generation assets as described further below. Therefore, the grandfathered exception in PURA § 39.154(e) has always applied, and continues to apply, to Luminant and only Luminant," Luminant said
Luminant provides further support for its stance in its RFI response