Footprint lines up Salem Harbor financing, gives construction go-ahead

Footprint Power Salem Harbor Development LP told the Federal Energy Regulatory Commission in a Jan. 14 update that on Jan. 9 it closed on the financing necessary to proceed with construction of the new Salem Harbor Facility.

“The Commission’s issuances of the Deferral Order and the Footprint Deferral Order were critical to Footprint’s ability to achieve this milestone,” said the filing, in reference to commission orders related to needed changes in ISO New England commitments for this delayed project. “As a result of Footprint’s success in procuring the necessary financing, Footprint has now issued a Final Notice to Proceed to its engineering, procurement and construction contractor, Iberdrola Energy Projects, Inc.

In a Sept. 12, 2014, FERC order referenced in the Jan. 14 notice, FERC approved ISO New England revisions to its Transmission, Markets and Services Tariff to allow a non-commercial capacity resource to file with the commission a request for a one-year deferral of its Capacity Supply Obligation under certain circumstances. The commission on Dec. 5, 2014, then approved Footprint’s individual application for a deferral under that program.

On Oct. 7, 2014, Footprint had filed a request for a one-year deferral of its Capacity Supply Obligation obtained in ISO-NE’s seventh Forward Capacity Auction (FCA 7) for the Capacity Commitment Period beginning on June 1, 2016. Footprint in 2012 bought the venerable, oil- and coal-fired Salem Harbor Power Station in Massachusetts and now plans to repower it with two state-of-the art, quick-start natural gas turbine generators; two steam-turbine generators; and two heat-recovery steam generators. It will have an aggregate capacity of 674 MW and be located on a roughly 20-acre portion of the 65-acre Salem Harbor site.

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.