FERC okays power marketing deal for coal-fired Nelson Unit 6

Entergy Gulf States Louisiana LLC won a Dec. 11 approval from the Federal Energy Regulatory Commission for a Nelson Station Unit 6 power marketing agreement.

The Oct. 16 application for this approval was noticed on Oct. 17, with no protests or adverse comments filed.

The purpose of the agreement is to document a cooperative arrangement between EGSL and the joint owners of Nelson 6 whereby the parties will coordinate their participation in the Midcontinent Independent System Operator (MISO) Energy and Ancillary Services Market when EGSL becomes a member of the MISO Market.

Nelson 6 is a 378-MW, baseload coal unit that went commercial in 1982. Also at the same site are the oil- and gas-fired Units 3 and 4.

The agreement is among Entergy Gulf States, Entergy TexasEast Texas Electric CooperativeSam Rayburn G&T and EAM Nelson Holding LLC. Each of these parties is already a party to the other main agreement that governs the operation and coordination of service with respect to Nelson 6, called the Joint Ownership Participation and Operating Agreement.

In April 2011, various Entergy companies announced a proposal to join MISO. These Entergy companies submitted formal filings to their retail regulators with a target implementation date for joining MISO of December 2013.

In preparing for a transition to MISO, EGSL engaged the Nelson 6 co-owners in a series of discussions regarding how Nelson 6 may effectively participate in the MISO Market in a manner that provides the optimum benefits to each of the co-owners. EGSL and the co-owners agreed that developing multiple mechanisms for offering energy and ancillary services into the MISO Market was a preferable solution. EGSL and the co-owners subsequently developed procedures for two mechanisms.

The Nelson plant took coal earlier this year from mines in the Powder River Basin of Wyoming, including the Cordero and Antelope mines of Cloud Peak Energy and the Black Thunder mine of Arch Coal, according to U.S. Energy Information Administration data.

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.