ArcelorMittal Cleveland seeks market authority for outside power sales

ArcelorMittal Cleveland LLC (AM Cleveland), part of international steel producer ArcelorMittal, on May 12 petitioned the Federal Energy Regulatory Commission for acceptance of its Market-Based Rate Tariff and a grant of such waivers and blanket authorizations given to entities engaged in the wholesale sales of electricity at market-based rates.

AM Cleveland owns and operates steel manufacturing, processing and related facilities located in Cleveland, Ohio. It owns on-site generating facilities with a total nameplate capacity of 90 MW (15 MW of which is currently out of service). AM Cleveland is in the process of interconnecting its Warren generating facility, which has a nameplate capacity of 20 MW, to the grid to allow it to make wholesale sales of power into the markets administered by PJM Interconnection, when such power is in excess of its steel manufacturing requirements.

AM Cleveland intends to make sales of test power under its interconnection agreement by July 1, 2016. As a result, AM Cleveland seeks the commission’s acceptance of its Tariff effective on June 30, 2016, in order to complete its interconnection process and commence sales into PJM’s wholesale power markets.

AM Cleveland and its affiliates own or control approximately 495 MW of generating capacity, including 170 MW of generating capacity (95 MW of which is currently out of service) within the PJM balancing authority area (BAA), and 325 MW of generation capacity within the Midcontinent Independent System Operator BAA.

Other affiliated generating facilities in the PJM and MISO BAAs are:

  • ArcelorMittal Burns Harbor LLC owns facilities with a nominal capacity of 176 MW located in Burns Harbor, Indiana (MISO BAA);
  • ArcelorMittal Indiana Harbor LLC owns facilities with a nominal capacity of 80 MW, and leases and operates an on-site cogeneration facility with a nominal capacity of 50 MW, located in East Chicago, Indiana (MISO BAA); and
  • ArcelorMittal Weirton Inc. owns facilities (currently out of service) with a nominal capacity of 80 MW, located in Weirton, West Virginia (PJM BAA).

Said the ArcelorMittal website about the Warren site: “Warren is a coke plant where metallurgical-grade coal is converted into coke. It is located in the city of Warren, in northeastern Ohio. The Warren facility site dates back to the 1920s, with the current coke battery having been commissioned in 1979. Its location allows for easy access to coal fields in the Appalachian region as well as to the steel mills from Pennsylvania to Indiana. Warren produces coke for supply primarily to ArcelorMittal Cleveland. The facility has the capability to produce 550,000 tons of coke annually.”

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.