The Midcontinent ISO filed more details with the Federal Energy Regulatory Commission about why the second phase of Calpine’s (NYSE: CPN) Mankato Energy Center LLC project in Minnesota is lagging 11 years behind the original schedule.
FERC on Dec. 12 asked for the extra timing details, after MISO on Oct. 15 filed an Amended and Restated Generator Interconnection Agreement for Mankato. The first phase of this gas-fired power plant was built several years ago, with the original GIA calling for the second phase to to be commercially operating by June 1, 2007. The revised GIA calls for a new commercial operation target date of June 1, 2018. The commission asked for more details on that 11-year lag.
MISO said that there was an initial delay from the Calpine side of things, then a request earlier this decade by Calpine to proceed with the second phase, which triggered a need for MISO to restudy the transmission impacts of the second phase.
“The 2018 Commercial Operation Date is based on MISO’s recent restudies and the time when Phase II can reliably enter Commercial Operation due to the timing of other projects that must be in-service for Phase II to proceed,” MISO wrote to FERC. “As with all projects, MISO does not require a project to achieve Commercial Operation prior to the In-Service Dates of the full required Network Upgrades and Contingent Facilities for the project. While an interconnection customer may voluntarily choose to utilize MISO’s limited operations provisions in order to begin operations prior to the completion of other projects’ Network Upgrades (often with long-term In-Service Dates), MISO does not require interconnection customers to do so. As noted in Exhibit A10 of the GIA, the restudies found that Phase II of the project is conditional upon MISO Multi-Value Projects being completed. These projects have In-Service Dates in 2018. Consequently, the Interconnection Customer requested a 2018 Commercial Operation Date for the Phase II portion of the GIA, and MISO was agreeable with that date.”
Under this GIA, Calpine has install 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 facility is composed of three units in a combined cycle 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. Phase 1 installed 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.