FERC grants waiver to gas-fired Oregon Clean Energy project

The members of the Federal Energy Regulatory Commission on May 10 approved an April 26 application Oregon Clean Energy LLC (OCE) for a one-time, limited waiver of the Competitive Entry Exemption deadline set forth in PJM Interconnection’s Open Access Transmission Tariff.

OCE also requested expedited action on its petition by May 10. “For the reasons discussed below, we grant OCE’s request for waiver,” said the FERC order.

PJM secures capacity commitments under the Reliability Pricing Model through a Base Residual Auction (BRA), held three years before a delivery year. PJM’s Minimum Offer Price Rule imposes minimum offer prices for new generation capacity resources participating in the BRA. A Capacity Market Seller can seek to qualify for a Competitive Entry Exemption to the Minimum Offer Price Rule for an upcoming BRA.

If a Capacity Market Seller seeks a Competitive Entry Exemption, it must fulfill the substantive criteria for a Competitive Entry Exemption set forth in the Tariff. Specifically, the Capacity Market Seller must submit its exemption request, along with supporting data and documentation, to the Market Monitoring Unit (MMU) and PJM’s Office of Interconnection at least 135 days before the commencement of the offer period for the BRA in which the Capacity Market Seller seeks to submit its offer. For the May 11, 2016, BRA, the deadline for requesting a Competitive Entry Exemption was Dec. 28, 2015.

OCE is undertaking a project to increase the capacity of an existing gas-fired combined cycle facility, identified as the Oregon Energy Center, from its current nameplate capacity of 799 MW to a total capacity of 845 MW – an addition of 46 MW. The 799 MW of capacity for the existing facility has already been offered into and cleared a prior auction. The additional 46 MW have not previously been offered into a Reliability Pricing Model auction.

OCE anticipates the project will commence commercial operation by June 2017.

OCE requested waiver of the Dec. 28, 2015, deadline to request a Competitive Entry Exemption for its project for the 2016 BRA for the 2019/2020 delivery year. OCE said expedited action was warranted to provide the MMU and PJM’s Office of Interconnection time for consideration of its Competitive Entry Exemption request in advance of the 2016 BRA.

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.