Google has created a subsidiary called Google Energy and has applied to become an electricity marketer from the Federal Energy Regulatory Commission (FERC). Google want to have more flexibility in procuring power for Google’s own operations, including the data centers.
Google created the Google Energy subsidiary to identify and develop opportunities to contain and manage the cost of energy for Google. Google is asking FERC to allow Google Energy to act as a power marketer, purchasing electricity and reselling it to wholesale customers. Google may also engage in other activities to facilitate efficient trade in the bulk power market, such as arranging services in related areas such as transmission and fuel supplies.
Google Energy’s application requests acceptance of market-based rate tariff, under which Google Energy will engage in wholesale electric power and energy transactions as a marketer; the granting of certain blanket approvals, including the authority to sell electricity at market-based rates; andthe waiver of certain Federal Energy Regulatory Commission regulations.
If FERC grants the permission, Google will have the ability to buy and sell power in wholesale markets at market based rates. FERC is an independent U.S. federal government agency tasked with regulating U.S. interstate transmission of electricity, natural gas, and oil. [via cio]