MISO files revised grid support deal for Presque Isle coal plant

The Midcontinent Independent System Operator (MISO), responding to a July 29 order from the Federal Energy Regulatory Commission, filed with FERC on Aug. 11 a revised System Support Resources (SSR) for the coal-fired Presque Isle power plant.

The aging plant, faced with new air emissions requirements and slack regional power demand, had lately been headed for shutdown. But MISO has needed it for grid support, prompting the SSR.

The July 29 order addressed a number of issues related to MISO’s designation of the Presque Isle Power Plant (PIPP), owned and operated by the Wisconsin Electric Power, as SSR units. The commission considered various protests that addressed the provisions of the PIPP SSR agreement. While most arguments were rejected, the commission directed MISO to make two adjustments to the text, which are the subject of this filing.

The commission required MISO to add the following provision to the end of Exhibit 2 to the SSR Agreement: “Whenever the SSR Unit operates in the MISO Market for purposes other than system reliability, the SSR Unit will be committed, dispatched, and settled pursuant to the MISO Tariff, except in those hours where the SSR Unit Compensation is less than the SSR Unit Energy and Operating Reserve Credit. Under this exception, MISO will debit Participant (such debit to be equal to the difference between the SSR Unit Energy and Operating Reserve Credit and the SSR Unit Compensation).”

In the July 29 order, the commission also directed that the effective date for the SSR agreement would be Feb. 1, 2014. Therefore, the revisions to the SSR agreement are submitted with that effective date.

The SSR covers Presque Isle Units 5-9, located in Marquette in Michigan’s western Upper Peninsula. These coal units are: Presque Isle Units 5 and 6 – 55-MW generators (each); and Presque Isle Units 7-9 – 78-MW generators (each).

The term of this agreement is twelve months from Feb. 1, 2014. MISO, in its sole discretion, may terminate this agreement for one or more units prior to the end of the term by giving at least 90 days advance written notice to Wisconsin Electric. This 12-month term may be extended by MISO if MISO provides at least 180 days advance notice of such extension to the utility.

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.