FERC seeks more details on delay for Phase 2 of Mankato project

The Federal Energy Regulatory Commission on Dec. 12 asked the Midcontinent ISO for more details, including the reasons for delay of Phase 2 of the Mankato Energy Center project in Minnesota of Calpine Corp. (NYSE: CPN).

On Oct. 15, MISO submitted an Amended and Restated Generator Interconnection Agreement with Mankato Energy Center LLC and interconnecting transmission owner Northern States Power. MISO requested that the commission accept the Interconnection Agreement for filing effective Oct. 16, 2014.

The agreement details are deficient in several respects, said the Dec. 12 FERC letter to MISO, including: “With respect to the proposed new Commercial Operation Date of Phase 2 of the project, please provide an explanation for why the proposed extension of 11 years (June 1, 2007 to June 1, 2018) is appropriate under MISO’s Generation Interconnection Procedures and this agreement. In your response, please explain all factors that MISO took into consideration in reaching its conclusion that the proposed extension is appropriate.”

The agreement covers a 922 MVA facility, rated at 682 MW summer gross and 757 MW winter gross and 667 MW summer net and 740 MW winter net. This generating facility is composed of three units in a combined cycle configuration rated at 226 MVA for combustion turbine generator no. 1, 226 MVA for combustion turbine generator no. 2 and 470 MVA for the steam turbine generator.

The completed Phase 1 involved the installation of the first 226 MVA combustion turbine generator and the 470 MVA steam turbine generator. Phase 2 consists of installing the second 226 MVA combustion turbine.

The revised in-service dates are:

  • Phase 1 – July 1, 2006; and
  • Phase 2 – original date was June 1, 2007, and the expected new date is June 1, 2018.

A project contact is: Brett Kruse, Mankato Energy Center LLC, Calpine Energy Services, 717 Texas Ave., Suite 1000, Houston, TX 77002, Voice – 713-830-8732, Fax – 713-830-8705, Email – Brett.Kruse@calpine.com.

Calpine has been trying to bid this new capacity at Mankato into Northern States Power. But the utility told the Minnesota Public Utilities Commission in September that a recent downward revision in its power demand forecast calls into question the need in the near term for new purchased power agreements for gas-fired capacity, including the Mankato capacity.

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.