FERC accepts Safe Harbor notice on Nine Mile Point uprate

The Federal Energy Regulatory Commission sent a Nov. 20 letter to the attorney for Safe Harbor Water Power Corp. accepting a notice about a 168-MW uprate of the Nine Mile Point nuclear power plant in New York.

“On July 25, 2012, you filed on behalf of Safe Harbor Water Power Corporation (Safe Harbor) a notice of change in status stating that Unit 2 of Nine Mile Point Nuclear Station, LLC’s generation facility was uprated by 168 megawatts,” said the FERC letter. “You also report new affiliations with subsidiaries of Exelon Corporation. You state that the uprate and new affiliations do not affect the conditions the Commission relied upon when granting Safe Harbor market-based rate authority. Your filing was noticed on July 26, 2012, with comments, protests or interventions due on or before August 15, 2012. None was filed.”

Safe Harbor said in the July 25 notice that it had learned from a June 29 filing by the “Exelon MBR Entities” that the generating capability of Nine Mile Point Unit 2 has been uprated by 168 MW during a unit outage that concluded with an initial return to service on June 7. Safe Harbor also reported that it had learned from the July 6 filing by the Exelon MBR Entities that it is affiliated with certain other subsidiaries of Exelon Corp. (NYSE: EXC).

Nine Mile Point Nuclear Station LLC is an affiliate of the Exelon MBR Entities, a group of entities affiliated with or subsidiaries of Exelon and who hold market-based rate authorizations from the commission. The Exelon MBR Entities state that, because Nine Mile Point Nuclear Station LLC owns 82% of the Nine Mile Unit 2 uprate and is an affiliate of the Exelon MBR Entities, 137.8 MW of the uprate is attributable to the Exelon MBR Entities.

Safe Harbor is owned by Constellation Power Source Generation (CPSG), and LSP Safe Harbor Holdings LLC (LSP Safe Harbor), which is an indirect subsidiary of LS Power Development LLC. CPSG owns 66 2/3% of the outstanding stock of Safe Harbor, and LSP Safe Harbor owns the remaining 33 1/3% of the outstanding stock. CPSG and LSP Safe Harbor purchase the facility’s entire output in proportion to their respective ownership shares.

The commission conditionally authorized the merger of Exelon and Constellation Energy Group and their respective public utility subsidiaries in its order issued March 9. Following consummation of the Exelon-Constellation merger, Safe Harbor continues to be owned by CPSG and LSP Safe Harbor. However, as a result of the Exelon-Constellation merger, Safe Harbor is now deemed to be affiliated with the subsidiaries and affiliates of Exelon, as reported in Safe Harbor’s approved Updated Market Power Analysis and Notice of Change in Status. Thus, because Safe Harbor is deemed to be an affiliate of the Exelon MBR Entities and Nine Mile, out of an abundance of caution Safe Harbor said it submitted this notice of change in status on its own accord.

Nine Mile Unit 2 is located in the New York Independent System Operator (NYISO) balancing authority area. Adding the 137.8 MW from the Nine Mile Unit 2 uprate to the Exelon MBR Entities uncommitted capacity of 1,309 MW in the NYISO market (for a total of 1,446.8 MW) does not cause the Exelon MBR Entities and their affiliates to become pivotal suppliers in the NYISO market, which a recently accepted pivotal supplier analysis indicates has 9,107 MW in net uncommitted supply, the July 25 filing noted.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.