FERC last week denied a request by two energy companies to declare they were not affiliates of the investment management wing of Fidelity Investments (EL15-96).

The companies, Backyard Farms Energy and Devonshire Energy, are indirect subsidiaries of Fidelity parent company FMR.

Devonshire was formed to purchase wholesale power for FMR’s multiple operating companies; Backyard Farms Energy purchases wholesale energy for use by an affiliated greenhouse grower of tomatoes in Maine.

The two energy companies argued that the mutual fund accounts managed by subsidiary Fidelity Management & Research are not owned by the parent company itself but by shareholders and institutions.

Backyard and Devonshire said they made the request for a declaratory order because they were concerned that they would be required to file a change of status if their affiliates acquired more than 10% of another energy company.

FERC said that its regulations classify the companies as affiliates of Fidelity Management because they are under the common control of FMR.

“Regardless of the ownership of the Fidelity accounts themselves, the fact remains that the Fidelity advisers manage and control the investments that the Fidelity accounts make and also exercise voting rights for the Fidelity funds in some circumstances,” the commission said.

— Michael Brooks