WPPI, Invenergy work on Illinois power project waiver at FERC

Sponsored by

Invenergy Nelson LLC is working at the Federal Energy Regulatory Commission (FERC) for approval of a waiver related to a 600 MW, gas-fired power project in Illinois.

The company on March 12 requested that the commission grant a waiver to allow Nelson to secure a partial exception from the requirement to offer the full amount of Nelson's facility's capacity into the Base Residual Auction (BRA) of PJM Interconnection's Reliability Pricing Model (RPM) Auction for the 2017/2018 Delivery Year.

Nelson is currently developing a nearly 600 MW combined-cycle gas turbine electric generating facility within PJM, which is expected to go into operation in 2015. The Nelson Facility offered into and cleared the PJM 2016/2017 RPM BRA. As a result, it is considered an Existing Generation Capacity Resource and is required to offer its capacity into the next BRA to be held in May 2014 for the 2017/2018 Delivery Year unless it requests and is granted an exception under Section 6.6(g) of Attachment DD of the PJM Tariff.

One of the available exceptions applies when the Existing Generation Capacity Resource has a financially and physically firm commitment to an external sale of its capacity.

On March 12, Nelson executed an agreement with WPPI Energy under which WPPI will purchase 15.6 percent of the Nelson Facility's output for a 20-year term, which commences June 1, 2017, at the beginning of the 2017-2018 Delivery Year. WPPI serves loads that are located in the Midcontinent Independent System Operator region, where it intends to designate this capacity as a firm network resource in support of its MISO resource adequacy requirements. The WPPI agreement results in a financially and physically firm commitment to an external sale from the Nelson Facility, Nelson said.

Said WPPI in a March 13 support brief: “WPPI urges the Commission to promptly grant Nelson the requested waiver to enable PJM to remove 15.6 percent (approximately 90 MW) of the 600 MW capacity of the Nelson facility from the BRA for the 2017/2018 Delivery Year because Nelson has entered a financially and physically firm commitment to sell that portion of its capacity to WPPI for use as a firm network resource to support its resource adequacy obligations in Midcontinent Independent System Operator, Inc. (MISO).”

PJM's Independent Market Monitor (IMM) said in its own March 26 brief: “The Market Monitor opposes the request for waiver because Nelson did not enter into the agreement for export until two months after the applicable deadline. Nelson has not indicated a valid reason for granting a waiver.”

Said Invenergy Nelson and WPPI in a March 28 joint reply brief: “The Commission should deny the IMM's request because Nelson has amply satisfied the requirements for waiver given the unusual circumstances.

As described below, grant of the limited, one-time, Waiver Request is needed to preserve a twenty-year contract that will enable a WPPI to meet its long-term load obligations and resource adequacy requirements, and will not appreciably diminish the capacity available to or otherwise adversely impact PJM's upcoming capacity market auction. The IMM has advanced no valid justification to deny the Waiver Request, even while at the same time choosing to not oppose a waiver request made by Dynegy Marketing and Trade, LLC (‘Dynegy') that has been triggered by the very same circumstances that are the predicate for the Nelson Waiver Request.”

Sponsored by

CURRENT ARTICLES

Nebraska nuclear power plant taken temporarily offline

12/18/2014

The Fort Calhoun nuclear plant in Nebraska has been taken temporarily offline due to a lockout of its main generator

North Carolina group wants Duke Energy to build fewer power plants

12/18/2014 Duke Energy responded in a statement that NC WARN is complaining after the company built natural gas and solar power units...

Revenue from zero energy buildings to total nearly $4.6 trillion through 2035

12/18/2014 Worldwide revenue from zero energy buildings is expected to total nearly $4.6 trillion from 2014 through 2035, according t...

SDG&E Sunrise Powerline transmission line delivers 1 GW of renewable energy

12/18/2014 San Diego Gas & Electric said more than 1,000 MW of renewable power is being delivered to the San Diego region made po...

Westinghouse, EDF sign nuclear fuel supply contract

12/18/2014 Westinghouse Electric Co. announced that it has been awarded a long-term contract to provide several thousand tons of fuel...

ITC energizes Kansas transmission line, substations

12/18/2014

The 122-mile double-circuit, 345 kV transmission line runs east of Medicine Lodge, Kan., to Spearville, Kan. 

Gunfire damages BPA transmission insulators

12/18/2014

Damaged insulators can put people nearby at risk of electric shock, serious injury or death

INDUSTRY STOCKS

ON DEMAND WEBCASTS

Benefits of a Managed Service System

Attend this webinar, sponsored by Itron, to understand how utilizing managed services can optimiz...

Architecting Communication Networks for Smart Grids

This webinar will provide the essentials of communication networking to meet the challenges of th...

The Power of Behavioral Design: Lessons for Energy Efficiency Providers

Behavioral design principles are key differentiators when it comes to influencing consumer behavi...

3D BIM for Substations—Driving Efficiency from Design Through Operation and Maintenance

In this webinar, PESTECH will describe their transition to intelligent substation design and its ...

High Availability Networks. Application of IEC6439-3 Protocols for IEC61850 Process Bus implementation

Networks can now be built for the first time with genuinely uninterrupted data communication betw...

EL&P BUYER'S GUIDE PRODUCTS

Resources on Demand

Manages resource requests, tracks personnel movements, and supports lodging/logistics during a power restoration event.

MITEM Corp

Provides CRM solutions for regulated U.S. public utilities. The product, MitemView integrates differently designed systems to share critical data a...

Smart Grids

Quanta is contributing to its customers' smart grid initiatives by installing technology on power networks to provide energy management solutions f...

Horizontal Directional Drilling

With 28 small, mid-sized and large drilling rigs, Quanta Pipeline Services is one of the largest horizontal directional contractors in the world fo...

POWERGRID PRODUCT LISTINGS

EtherMate® Industrial Ethernet - IO Modules

LioN-M ProfiNet device with 16 digital I/O channels, channels can be used universally as inputs or outputs, M12 socket, ro...

OFL280 FlexTester - Handheld OTDR

AFL's OFL280 FlexTester offers an unmatched combination of fiber test functions, ease-of-use, portability, and value.

TRM® 2.0 - Test Results Manager PC Analysis and Reporting

Test Results Manager 2.0 (TRM® 2.0) is an all-in-one analysis, viewer and reporting tool designed for use with NOYES fiber...

Low-Smoke Zero Halogen Premise Distribution Cable

AFL’s Low-Smoke Zero Halogen (LSZH) distribution cable offers all of the benefits of a traditional 900 µm based optical ca...

FEATURED ENERGY JOBS

View more Job Listings >>

POWERGRID International

October 2014
Volume 19, Issue 10
1410pg_C1digital

ELECTRIC LIGHT & POWER

October 2014
Volume 92, Issue 5
1409ELP-cover_digital