FERC grants waiver to FirstEnergy over last retirement at Burger

The Federal Energy Regulatory Commission on Dec. 31 granted FirstEnergy (NYSE: FE) a waiver related to the timing for the planned retirement of the last unit at the R.E. Burger power plant in Ohio.

On Nov. 26, FirstEnergy Service Co. requested a waiver of the preliminary must-offer exception request deadline set under the PJM Interconnection Open Access Transmission Tariff. Specifically, FirstEnergy sought a waiver for its 6.3-MW combustion turbine located at the R.E. Burger power plant for the Base Residual Auction (BRA) commencing May 2015 for the 2018/2019 Delivery Year. FirstEnergy also requested that the commission grant the requested waiver by no later than Dec. 31, 2014.

FirstEnergy explained that in September 2011, it retired the existing generating capacity at the R.E. Burger plant, except for the 6.3 MW associated with the Burger CT. FirstEnergy asserted that the Burger CT has a capacity supply obligation through and including the 2017/2018 Delivery Year.

FirstEnergy stated that after Sept. 1, 2014, it made a business decision to decommission the Burger CT before the 2018/2019 Delivery Year. FirstEnergy stated that because of the timing of this decision, it was unable to submit a preliminary must-offer exception request to PJM by the Sept. 1, 2014, deadline. FirstEnergy asserted that it will, however, comply with the substantive deactivation requirements of the Tariff.

Said the FERC decision: “As FirstEnergy explains, it missed the September 1, 2014, deadline to submit a preliminary must-offer exception request due to the timing of a business decision to decommission the Burger CT, and it subsequently submitted a final exception request by the December 1, 2014, deadline. We therefore find that FirstEnergy’s choice to act after the September 1, 2014, deadline was made in good faith. We also find it appropriate to grant this one-time waiver of the deadline for submitting a preliminary must-offer exception request for Delivery Year 2018/2019 for the Burger CT because of the limited scope of FirstEnergy’s request and because the waiver will allow FirstEnergy and PJM to remedy a concrete problem.”

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.