FERC ruled July 25 that New Brunswick Energy Marketing does not appear to have horizontal market power in the New Brunswick (NB) balancing authority area, concluding a Section 206 proceeding that came out of a failed market share screening test (ER14-225-008, et al.).

The NB balancing authority includes parts of Northern Maine and Eastern Canada. NB Energy Marketing is a subsidiary of the crown corporation NB Power and is directly interconnected to the transmission systems of ISO-NE and the Northern Maine Independent System Administrator.

ISO-NE initiated a Section 206 proceeding after NB Energy Marketing failed a “wholesale market share indicative screen” in three of the four seasons in the 2020/21 study period, suggesting the presence of horizontal market power.

The proceeding aimed “to determine whether NB Energy Marketing’s market-based rate authority in the New Brunswick balancing authority area remains just and reasonable.” (See FERC Orders Section 206 Proceeding for New Brunswick Energy Marketing.)

Responding to FERC’s show cause order on horizontal market power, NB Energy Marketing made the case that the results of a delivered price test (DPT) and a sensitivity analysis indicate the company is not a pivotal supplier.

When accounting for NB Power’s capacity factors and average load, the company “has a market share generally less than 20% and does not contribute significantly to market concentration,” NB Energy Marketing wrote in its filing.

Based on this evidence, FERC terminated the Section 206 proceeding, concluding that “on balance, NB Energy Marketing has successfully rebutted the presumption of horizontal market power in the New Brunswick balancing authority area.”