FERC accepts 2014 reliability deal for AES Huntington Beach units

The Federal Energy Regulatory Commission on Dec. 11 accepted an Oct. 24 filing by AES Huntington Beach LLC of a new Reliability Must-Run (RMR) agreement for calendar 2014 for Huntington Beach Generating Station Units 3 and 4.

The RMR is with the California Independent System Operator, which needs these units in operation for grid stability purposes. The Oct. 24 filing didn’t draw any protests or adverse comments.

RMRs are needed when a power generator wants to shut capacity, but the local grid operator, in this case CAISO, wants to keep it running for a while longer while compensating grid fixes are completed. In a Jan. 4 order, the commission accepted the current RMR agreement, effective as of Jan. 9, which expires at the end of this year. The RMR agreement provides CAISO the ability to dispatch Units 3 and 4 to provide voltage support when required for local reliability.

In the meantime, AES Southland is working on the gas-fired, 939-MW Huntington Beach Energy Project as a replacement for the existing plant.

The existing plant has five steam generating units (units 1, 2, 3, 4, and 5). Units 1 and 2 are currently operational. Effective October 2012, Units 3 and 4 ceased commercial operation. In September 2012, the California ISO approved a must-run contract on Units 3 and 4 to convert to synchronous condensers to provide voltage support to southern Orange County and San Diego. Unit 5, a 133-MW peaker, was retired in 2002.

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.