NYSEG, Cayuga work out deal to prolong life of Cayuga coal plant

On Jan. 3, New York State Electric & Gas filed a new Reliability Support Services Agreement at the New York State Public Service Commission with Cayuga Operating Co. LLC which will keep the coal-fired Cayuga power plant operating a year or so longer.

Cayuga is a coal-fired station in Lansing, N.Y., which consists of two generating units; Unit 1, which has a 154 MW net capacity (winter), and Unit 2, which has a 158.7 MW net capacity (winter). NYSEG is the transmission owner to which the Cayuga facility is interconnected.

On July 20, 2012, Cayuga notified the New York State Public Service Commission (NYPSC) of its intent to mothball the Cayuga units by Jan. 16, 2013. NYSEG and the New York State Independent System Operator (NYISO) then worked together to determine the effects of the retirement of these units on electric system reliability and local reliability issues. That work showed that both units need for an extended period of time to be available and capable of being committed to maintain system reliability while system upgrades are made.

The reliability support agreement, dated Dec. 27, becomes effective on Jan. 16, 2013, and runs until Jan. 15, 2014 (the “Initial Term”). Upon 60 calendar days written notice, either party may terminate this agreement prior to Jan. 15, 2014, if any of the following events or circumstances materially and adversely affect either party during the Initial Term: a change in law; a change to the NYISO Tariff or other NYISO policy or rule; or an order of any governmental authority, other than as a result of an action or proceeding commenced by such party.

NYSEG agreed to provide written notice to Cayuga indicating the need for either or both of the Cayuga units after the expiration of the Initial Term. Upon receiving an extension notice, the parties will engage in good faith negotiations to establish a new written agreement.

Cayuga agreed to interface and comply with NYISO scheduling deadlines and requirements for maintaining the Cayuga units as eligible energy and capacity providers, as well as comply with NYSEG’s or NYISO’s dispatch instructions.

The NYPSC on Dec. 17 approved NYSEG and Cayuga to enter into this deal.

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.