FERC okays sale by NRG of 525-MW Seward coal plant in Pennsylvania

On Jan. 14, the Federal Energy Regulatory Commission approved a December application from NRG Wholesale Generation LP and Seward Generation LLC for Seward Generation’s purchase of a 525-MW coal plant in Pennsylvania.

NRG Wholesale is an exempt wholesale generator (EWG) that owns and operates a 525-MW waste coal-fired facility located in New Florence, Pennsylvania, and interconnected with the transmission grid controlled by PJM Interconnection. NRG Wholesale is part of NRG Energy (NYSE: NRG). Incidentally, the plant has a 585-MW nameplate rating and a 525-MW summer rating. 

Seward Generation was formed for purposes of acquiring the Seward Generating Station. Seward is controlled by two individuals, Judson L. Kroh and D. Scott Kroh. D. Scott Kroh is a longtime veteran of the Pennsylvania coal industry that has been supplying the Seward plant, which uses fluidized-bed combustion technology, for years with waste coal and other services through his Robindale Energy Services company.

Seward is affiliated with only one entity, Sunbury Generation LP, which owns or controls generation assets in the PJM market. Sunbury owns an approximately 436-MW coal-fired facility located in Shamokin Dam, Pennsylvania, that was retired in 2014. That power plant site is in the process of being converted to host a 1,000-MW natural gas-fired facility. Seward is also affiliated with Robindale Energy Services, Seward Operating LLC and RES Coal LLC. Seward Operating operates and maintains the Seward Generating Station’s material handling system. RES Coal is a surface coal mining company in central Pennsylvania.

On Jan. 12, FERC approved a December application from Seward Generation for market-based rate authority with an accompanying tariff. The market-based rate tariff provides for the sale of energy, capacity, and ancillary services at market-based rates.

NRG Energy announced Dec. 1 that it has agreed to sell the Seward plant to Seward Generation, with the deal to close in the first quarter of 2016, pending regulatory approvals.

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.