FERC okays market authority for revived Danskammer plant

In a key approval for reviving a New York power plant shut since late 2012, the Federal Energy Regulatory Commission on Aug. 1 approved Danskammer Energy LLC to sell power at market-based rates out of the Danskammer power plant.

FERC also found that Danskammer Energy meets the criteria for a Category 1 seller in the Northwest, Southwest, Southeast, Central, and Southwest Power Pool regions and a Category 2 seller in the Northeast region.

Danskammer Energy told FERC that, upon approval by the New York Public Service Commission, it will own, commence to repair, and operate the Danskammer Generating Facility. This facility has a capacity rating of approximately 537 MW and is located in Newburgh, N.Y., within the New York ISO market.

The facility has six units: two natural gas- and coal-fired units with a combined capacity rating of about 387 MW; two oil- and natural gas-fired units with a combined capacity rating of around 146 MW; and two emergency diesel generators, each with a capacity rating of approximately 3 MW. Danskammer Energy has assured parties that for clean-air reasons it will only fire gas in the coal-capable units.

The facility sustained flood damage in October 2012 in Superstorm Sandy and is currently an inoperable, non-jurisdictional facility, considered mothballed by NYISO. At one point it was to be sold for salvage.

Danskammer Energy was formed for the sole purpose of acquiring and returning the facility to service. Mercuria Energy America Inc. owns the controlling interest in Danskammer Energy. Mercuria Energy is a power marketer authorized by FERC to make sales of energy, capacity, and ancillary services at market-based rates.

In approving this market-based rate authority, FERC ruled that technical complaints raised by market competitor Entergy Nuclear are beyond the scope of this proceeding.

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.