MISO terminates interconnect deal for failed FutureGen 2.0 project

The Midcontinent Independent System Operator on Fen. 25 filed a notice of termination with the Federal Energy Regulatory Commission for a Generator Interconnection Agreement with the FutureGen Industrial Alliance and Ameren Services, as agent for interconnecting transmission owner Ameren Illinois.

In June 2015, MISO submitted the GIA for Project No. J239 to the commission, with FERC accepting it in August.

“Pursuant to Article 2.3.1 of the GIA, the Parties mutually agree to terminate the GIA, effective April 5, 2016,” said MISO in the Feb. 25 notice. “Terminating this GIA is appropriate, as the Interconnection Customer is no longer pursuing this Project.”

Exelon (NYSE: EXC) said in its Feb. 10 annual Form 10-K report that the FutureGen Industrial Alliance had recently ceased efforts to continue developing the coal-fired, 166-MW FutureGen 2.0 project in Illinois. The project, under orders of the Illinois Commerce Commission (ICC), was to supply power to Commonwealth Edison (ComEd), an Exelon subsidiary, something that ComEd had been fighting in court. The project was to be a partial repowering of the shut Meredosia power plant with oxy-combustion technology.

Exelon noted that in early February 2015, the U.S. Department of Energy suspended funding for the project until further clarity could be obtained on certain significant hurdles facing the project, including the outcome of the power contract litigation.

Exelon added: “On January 13, 2016, FutureGen informed the Illinois Supreme Court that it had ceased all development efforts on the FutureGen project and would soon be seeking to terminate the FutureGen supply agreements. Accordingly, FutureGen requested that the court dismiss the proceeding as moot. A decision from the Illinois Supreme Court dismissing the matter is expected in early 2016. In February 2016, FutureGen terminated its sourcing agreement with ComEd. As a result, ComEd is under no further obligation under this agreement.”

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.