Thursday, August 16, 2007

RBC to Enter US Wholesale Power Markets

Bloomberg, Tina Seeley, 16 August 2007

Royal Bank of Canada, which got U.S. approval last month to trade wholesale power, is seeking permission to export electricity from the U.S. to Canada.

RBC Energy Services LP, a unit of the bank, asked the U.S. Energy Department for the authority under a five-year term to send power from the U.S. to Canada, according to a notice today in the Federal Register.

The Toronto-based bank won permission last month from the U.S. Federal Energy Regulatory Commission to trade power at market rates. It plans to buy and sell power in the California, New England, New York and mid-Atlantic markets. It's proposing to use power lines in the U.S. Northwest, Midwest and Northeast for the exports.

The bank said in a June 27 filing to the commission that it ``is currently evaluating opportunities related to launching its trading business. Due to current conditions in the wholesale power markets, time is of the essence.''

Under U.S. law, the Energy Department must determine that any power exports will not harm the U.S. power-supply system. The bank told U.S. regulators that none of its affiliates own or control any power plants in the U.S., Canada or Mexico.