The NRG Delta LLC unit of NRG Energy (NYSE: NRG) on Sept. 19 submitted a notice at the Federal Energy Regulatory Commission of self-certification of exempt wholesale generator (EWG) status.
NRG Delta is an existing EWG, but is making this filing to inform the commission of additional activities that are incidental to NRG Delta’s exclusive business of owning and/or operating eligible facilities and selling electric energy at wholesale. That would be the sale of surplus equipment from a recently-shut power plant.
NRG Delta owns the Pittsburg Power Plant, which is a three-unit 1,311-MW natural gas-fired plant located in Pittsburg, Calif. NRG Delta also owns the Contra Costa Power Plant, which is a two-unit 674-MW natural gas-fired plant located in Antioch, Calif. Contra Costa was taken out of service on April 30 of this year and replaced at the site by a 760-MW natural gas-fired facility, called Marsh Landing, owned by NRG Marsh Landing LLC.
NRG Delta owns and operates the 1,311 MW Pittsburg facility and the deactivated Contra Costa facility. The “eligible facilities” are comprised of these facilities, related real property and equipment necessary for the generation of electricity, including step-up transformers, and related 115 kV and 230 kV transmission interconnection components necessary to connect the generation facility to the transmission system administered by the California Independent System Operator and to make wholesale power sales.
NRG Delta said it intends to sell certain spare parts and equipment items (such as transformers, steel, ammonia tanks, oil and other equipment) from the shut Contra Costa facility. These parts and equipment are in excess to NRG Delta’s business of owning and operating eligible facilities and selling power at wholesale. NRG Delta will retain the proceeds from the sales of its excess parts.
It noted that the commission has permitted EWGs to sell excess spare parts and retain the proceeds without violating the exclusivity requirement. In a prior case, the commission found that an EWG’s sale of surplus turbines to non-affiliates did not violate the exclusivity requirement where the turbines were not purchased for the purpose of resale but rather became excess due to a change in conditions. The commission recognized that such sales avoid economic waste.