Parties agree on schedule for review of Entergy power capacity buy

There was a status conference on Feb. 13 in front of an administrative law judge at the Louisiana Public Service Commission where a review schedule was worked out related to Entergy Gulf States Louisiana LLC‘s (EGSL) Jan. 13 application for approval for it to buy two of the four power blocks at the Union Power Station (UPS) in Arkansas.

Other Entergy Corp. (NYSE: ETR) subsidiaries in Arkansas and Texas would get the other two blocks as part of a larger transaction, and those subsidiaries are also before their state commissions for needed approvals.

The buy would be from Union Power Partners LP (UPP). The two power blocks that EGSL seeks to acquire would provide about 990 MW (summer rating) of modern, combined-cycle gas turbine (CCGT) capacity and energy. Once acquired, EGSL will sell to Entergy New Orleans (ENO) 20% of the output of the two power blocks on a life-of-unit basis pursuant to Service Schedule MSS-4 of the Entergy System Agreement.

UPS is located in southern Arkansas on approximately 330+ acres in Union County. It began commercial operation in July 2003 and is composed of four CCGT blocks in 2×1 configuration for a total of eight natural gas-fired combustion turbines and four steam turbines. Each power block consists of two combustion turbine generators, two heat recovery steam generators, a condensing steam turbine, and other items. Each power block has the same design and capacity rating, which is 495 MW (summer) and 538 MW (nominal).

Phillip R. May, President and Chief Executive Officer of Entergy Louisiana LLC (ELL) and Entergy Gulf States Louisiana, said in the Jan. 13 application: “To sum up, the acquisition of Power Blocks 3 and 4 represents an excellent opportunity to obtain cost-effective, modern CCGT capacity that will economically and reliably serve EGSL’s current and future customers. EGSL is committed to providing its customers with reliable service at the lowest reasonable cost, and the acquisition of Power Blocks 3 and 4 advances EGSL’s continuing pursuit of this goal in multiple ways.”

The parties at the Feb. 13 meeting with the ALJ worked out a schedule for flling of testimony by the parties that culminates with an Aug. 5-7 hearing in front of the commission.

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.