The Ohio Edison, Cleveland Electric Illuminating and American Transmission Systems Inc. units of FirstEnergy (NYSE: FE) on Jan. 6 asked the Ohio Power Siting Board to let them intervene in a case opened Dec. 19 by the NRG Ohio Pipeline Co. LLC unit of NRG Energy (NYSE: NRG).
NRG plans to construct, own, and operate an approximately 20-mile high-pressure natural gas pipeline in Lorain County, Ohio, that is intended to serve the Avon Lake generating plant in Avon Lake, Ohio – a 753-MW coal-fired facility whose owner (NRG Power Midwest LP) intends to convert to a natural gas fuel source to facilitate continued operation. All three FirstEnergy companies said they have electrical infrastructure that could be impacted along the proposed pipeline route.
“The Avon Lake Power Plant is a 734 MW coal-fired electricity generating facility,” the Dec. 19 application noted. “The plant is owned by NRG Power Midwest LP, which is an indirect subsidiary of NRG Energy, Inc. (‘NRG’). The Power Plant was slated for retirement by the facility’s prior owner as a result of significant expenditures required to meet increasingly stringent environmental requirements. NRG Power Midwest has decided to move ahead with a gas addition project, which will keep the facility in operation on natural gas beyond its planned deactivation date. The Avon Lake Gas Addition Project will provide natural gas as a fuel source to the Avon Lake Power Plant.”
The expected commercial operation date of the pipeline project is April 2016 and the ultimate commercial operation date of the Avon Lake Power Plant with natural gas as a fuel source is June 2016. The Avon Lake Plant has a PJM Interconnection capacity obligation for the 2016/17 delivery year which commences on June 1, 2016.