Constellation readies for imminent retirements of two Maryland power units

Constellation Power Source Generation LLC (CPSG) on Jan. 19 filed with the Federal Energy Regulatory Commission its FERC Rate Schedule No. 2, which revises CPSG’s cost-based annual revenue requirement (Revised ARR) for providing Reactive Supply and Voltage Control from Generation Sources Service to PJM Interconnection.

This filing is submitted due to the upcoming retirement of CPSG’s Perryman Unit CT 2, scheduled for Feb. 1, 2016, and in anticipation of the subsequent retirement of Riverside Unit 4, which is scheduled for June 1, 2016.

CPSG is an indirect, wholly owned subsidiary of Exelon Generation Co LLC and an affiliate of Baltimore Gas and Electric (BGE). CPSG currently owns and operates the following generation facilities located in the BGE Zone of the PJM balancing authority area:

  • Gould Street Unit 3;
  • Notch Cliff (Units CT 1–CT 8);
  • Perryman (Units CT 1–CT 4);
  • Perryman (Unit CT 6);
  • Perryman (Unit 51);
  • Philadelphia Road (Units CT 1–CT 4);
  • Riverside (Unit 4);
  • Riverside (Units CT 7–CT 8); and
  • Westport Unit CT 5.

These CPSG Units were previously owned by CPSG’s affiliate, BGE, and have a combined generation capacity of approximately 968 MW (summer rating).

CPSG previously experienced changes in its fleet in the BGE Zone with the retirement of the Riverside Unit CT 6 in June 2014, and more recently with the addition of the Perryman Unit CT 6 in June 2015. None of those changes resulted in revisions to the Current ARR, because the retirement of Riverside Unit CT 6 predated the new Schedule 2 requirements as well as the Show Cause Order in which the commission first expressed concerns about the tariff’s failure to address changes in reactive power compensation when generators sell or retire units.

On Oct. 1, 2015, CPSG notified PJM of its intent to retire Perryman Unit CT 2 and identified Jan. 1, 2016, as the target date for deactivation. By letter dated Oct. 27, 2015, PJM notified CPSG that Perryman Unit CT 2 is not required for system reliability beyond the proposed deactivation date. CPSG currently expects that Perryman Unit CT 2 will be retired on Feb. 1, 2016. In addition, on Dec. 1, 2013, CPSG notified PJM of its intent to retire Riverside Unit 4 and identified June 1, 2016, as the target date for deactivation.

Perryman is made up of six units, fired by oil and gas, with 463 MW of net capacity. Those figures include: Perryman Unit 2, with 51 MW of net capacity, which is the one due to retire; and the new Perryman Unit 6 (110 MW net), which went into commercial operation in June of 2015.

Riverside has three units, is fired by oil and gas, and has 113 MW of net capacity. Those figures include Riverside Unit 4 (74 MW net), which is the one due to be retired.

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.