SPP does disputed termination of deal for 89-MW Cottonwood project

The Southwest Power Pool filed with the Federal Energy Regulatory Commission on April 5 a notice of cancellation of the Generator Interconnection Agreement (GIA) with Cottonwood Wind Project LLC and interconnecting transmission owner Nebraska Public Power District.

The project has gone through a number of delays and GIA amendments. SPP said that Cottonwood has met the financial milestones included in Appendix B of the Fourth Revised Cottonwood GIA. However, after granting Cottonwood a number of extensions to accommodate Cottonwood’s regulatory requirements with the Nebraska Power Review Board (PRB), SPP said it understands that on Dec. 11, 2015, when NPPD requested confirmation to proceed with substation construction, Cottonwood notified NPPD not to proceed until Cottonwood provided further notice. Cottonwood previously utilized the entirety of the 18-month suspension period provided in Article 5.16 of the Fourth Revised Cottonwood GIA; therefore, Cottonwood no longer had the option under the Fourth Revised Cottonwood GIA to suspend work of the needed Network Upgrades, SPP said.

SPP added: “On January 12, 2016, SPP sent a letter to Cottonwood informing Cottonwood that its failure to proceed with the construction of the upgrades required under the Fourth Revised Cottonwood GIA was a breach of the Fourth Revised Cottonwood GIA. Pursuant to Article 17.1.1 of the Fourth Revised Cottonwood GIA, Cottonwood had 30 days to cure the breach. On February 1, 2016, Cottonwood notified SPP that it disagreed with SPP’s assertion that Cottonwood was in default of the Fourth Revised Cottonwood GIA. Cottonwood stated that the December 11, 2015 communication between NPPD and Cottonwood indicated that the timing of the work had not yet been resolved and was not a request by Cottonwood to suspend the work on the project. However, Cottonwood did not provide notice to NPPD to proceed with the construction of the required upgrades. Because Cottonwood did not cure the breach, on March 10, 2016, SPP notified Cottonwood in writing that, pursuant to Article 17.1.2 of the Fourth Revised Cottonwood GIA, SPP was terminating the Fourth Revised Cottonwood GIA effective March 10, 2016.” 

The project is to consist of 48 General Electric 1.715 MW Wind Turbine Generators (WTGs) and an additional four GE 1.79 MW WTGs for a combined total of 89.48 MW. The Point of Interconnection was NPPD‘s Rosemont 115-kV substation to be located on the Pauline-Guide Rock 115-kV transmission line.

A project contact is: Daryl Hart, Project Developer, Cottonwood Wind Project LLC c/o NextEra Energy Resources, FEW/JB 700, Universe Blvd., Juno Beach, FL 33408, Phone: (561) 304-5415, daryl.hart@nexteraenergy.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.