Covanta Fairfax readies for end of contract to supply power to Dominion

Due to the expiration next May of a contract to supply power to Virginia Electric and PowerCovanta Fairfax Inc. on Dec. 5 sought needed approvals from the Federal Energy Regulatory Commission related to market-based rate authority.

Covanta Fairfax is a wholly-owned subsidiary of Covanta Energy LLC, which is a wholly-owned subsidiary of Covanta Holding Corp. Covanta Holding is engaged in the energy and insurance businesses through its subsidiaries. Covanta Holding’s indirect energy subsidiaries are engaged in the business of developing, constructing, owning and/or operating projects for the conversion of waste to energy and independent power production both domestically and abroad and providing related infrastructure services.

Covanta Fairfax is engaged in the ownership and operation of the Fairfax (I-95) Energy/Resource Recovery Facility, a 108-MW municipal solid waste-fired facility (called the “Fairfax Facility”) located in Lorton, Virginia, just south of Washington DC, within the PJM Interconnection balancing authority area. The Fairfax Facility is also located within the AP South submarket of the PJM BAA. Covanta Fairfax is an exempt wholesale generator (EWG).

“Covanta Fairfax currently sells the entire output of the Fairfax Facility to Virginia Electric and Power Company d/b/a Dominion Virginia Power (‘Dominion’) pursuant to a Power Purchase and Operating Agreement (‘PPOA’)” said the filing. “The PPOA with Dominion is scheduled to expire, pursuant to its own terms, on May 31, 2015. In order to facilitate Covanta Fairfax’s future participation in the PJM market, Covanta Fairfax hereby submits for filing the Proposed Market-Based Rate Tariff.”

A company contact is: Kirk J. Bily, Covanta Energy Corporation, Vice President & Deputy General Counsel, 445 South Street, Morristown, NJ 07960, 862-345-5045, kbily@covantaenergy.com.

This isn’t the only such contract to expire in the next few years for Virginia Electric and Power. The utility filed its latest integrated resource plan with the Virginia State Corporation Commission on Aug. 29. In it, this Dominion Resources (NYSE: D) subsidiary lists its various contracts with non-utility generators (NUGs) and when those contracts expire. These contracts all date back to various times in the 1990s.

The NUG plants with contracts to supply Dominion are:

  • Spruance Genco Facility 1, Richmond, Virginia, baseload, coal, 115.5 MW (summer), contract expires July 31, 2017;
  • Spruance Genco Facility 2, Richmond, Virginia, baseload, coal, 85 MW (summer), contract also expires July 31, 2017;
  • Edgecombe Genco (Rocky Mount), Battleboro, North Carolina, baseload, coal, 115.5 MW (summer), expires Oct. 14, 2015;
  • Doswell Complex, Ashland, Virginia, intermediate load, natural gas, 605 MW (summer), expires May 5, 2017;
  • Hopewell Cogen, Hopewell, Virginia, intermediate load, natural gas, 336.6 MW (summer), expires July 31, 2015;
  • Covanta Fairfax, Lorton, Virginia, baseload, municipal solid waste, 63 MW (summer), expires May 31, 2015;
  • Roanoke Valley II, Weldon, North Carolina, baseload, coal, 44 MW (summer), expires March 31, 2019;
  • Roanoke Valley Project, Weldon, North Carolina, baseload, coal, 165 MW (summer), expires March 31, 2019; and
  • SEI Birchwood, King George, Virginia, baseload, coal, 217.8 MW (summer), expires Nov. 14, 2021.
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.