FERC grants waiver for 337-MW gas project in Pennsylvania

The Federal Energy Regulatory Commission on Feb. 13 granted a break to Future Power PA LLC in the form of a limited, one-time waiver of the procedural deadlines in PJM Interconnection‘s Reliability Pricing Model (RPM) rules.

Future Power said in its Jan. 22 application that this waiver will allow it to apply for a Competitive Entry Exemption from the Minimum Offer Price Rule (MOPR) for a new 337-MW, natural gas-fired combined cycle plant currently under development in Pennsylvania by Future Power and its affiliates. The deadline for seeking a Competitive Entry Exemption under PJM’s RPM rules was Dec. 27, 2014. Future Power said it has been authorized to represent that the Independent Market Monitor (IMM) for PJM does not oppose this request for limited waiver.

Future Power moved for a shortened answer period and expedited consideration so that PJM and the PJM Market Monitoring Unit (MMU) are able to substantively review and grant Future Power’s requested Competitive Entry Exemption in time for the Base Residual Auction for the 2018/2019 Capacity Year (2018/2019 BRA), which begins May 11, 2015.

Future Power PA is indirectly 50% owned by EmberClear Corp., a developer of clean energy projects with its principal place of business at Houston, Texas, and 50% by Tyr Energy, a developer and independent power producer with its principal place of business at Overland Park, Kansas. Future Power owns the Good Spring Energy Center, a 337-MW natural gas combined cycle plant under development in Schuylkill County, Pa. Good Spring will connect to PPL Electric Utilities’ transmission facilities near the Frackville substation at a planned switchyard referred to as W3-022.

“Future Power missed the exemption request deadline for Good Spring for the upcoming 2018/2019 BRA because of uncertainty as to whether the project would be operational in time for the auction,” the application explained. “Recent events after the deadline have provided assurances that Good Spring will be operational and therefore able to meet any obligations arising out of the 2018/2019 BRA.”

Said the Feb. 13 FERC approval order: “We find that good cause exists to grant the request for the unopposed waiver. Future Power maintains that it failed to meet the deadline due to a good faith belief that it needed to be confident that its unit would be constructed in time for the Auction. We find that, while an incorrect reading of the tariff, Future Power acted in good faith in not timely seeking the exemption. Thereafter, Future Power has promptly sought the Competitive Entry Exemption for Good Spring. Second, the requested waiver is a one-time waiver, and is limited in scope, in that it is limited solely to procedural deadlines for a single Auction and does not relate to the substantive requirements for the Competitive Entry Exemption. Third, the waiver will remedy a concrete problem and enable Future Power to seek a MOPR exemption in time to allow its capacity into the Auction. Fourth, we find that granting the requested waiver will not lead to undesirable consequences for PJM or any third parties. According to Future Power, it has been authorized to represent that the Market Monitor does not oppose the request. We also note that no parties oppose the request.”

A project contact is: Nicholas M. Cohen, Chief Operating Officer, EmberClear Corp., 2700 Post Oak Blvd, Suite 1400 Galleria Tower I, Houston, TX 77056, Phone: (570) 840-5835, Fax: (570) 614-2255, ncohen@emberclear.com.

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.