Virginia Power has three non-utility power purchase deals to expire in 2017

Virginia Electric and Power has six non-utility generator (NUG) power purchase deals dating back to the 1990s, with three of those contracts due to expire next year.

In an integrated resource plan filed April 29 at the Virginia State Corporation Commission and the North Carolina Utilities Commission, the utility outlined these NUG contracts, with plant locations, fuels, MW ratings and contract dates:

  • Spruance Genco, Facility 1 (Richmond 1), Richmond, Va., Baseload, Coal, 115.5 MW (summer), contract start 8/1/1992, contract expiration 7/31/2017;
  • Spruance Genco, Facility 2 (Richmond 2) Richmond, Va., Baseload, Coal, 85 MW summer, contract start 8/1/1992, contract expiration 7/31/2017;
  • Doswell Complex, Ashland, Va, Intermediate, Natural Gas, 605 MW summer, contract start 5/16/1992, contract expiration 5/5/2017;
  • Roanoke Valley II, Weldon, N.C., Baseload, Coal, 44 MW summer, contract start 6/1/1995, contract expiration 3/31/2019;
  • Roanoke Valley Project, Weldon, N.C., Baseload, Coal, 165 MW summer, contract start 5/29/1994, contract expiration 3/31/2019; and
  • SEI Birchwood, King George, Va., Baseload, Coal, 217.8 MW summer, contract start 11/15/1996, contract expiration 11/14/2021.

The IRP says this Dominion Resources (NYSE: D) subsidiary may or may not re-up with any of these power suppliers when the contracts expire. It said generally about NUGs: “A portion of the Company’s load and energy requirements is supplemented with contracted NUG units and market purchases. The Company has existing contracts with fossil-burning and renewable NUGs for capacity of 1,277 MW. These NUGs are considered firm generating capacity resources and are included in the 2016 Plan.

“NUG units are obligated to provide firm generating capacity and energy at the contracted terms during the life of the contract. The firm generating capacity from NUGs is included as a resource in meeting the reserve requirements. For modeling purposes, the Company assumed that its NUG capacity will be available as a firm generating capacity resource in accordance with current contractual terms. These NUG units also provide energy to the Company according to their contractual arrangements.

“At the expiration of these NUG contracts, these units will no longer be modeled as a firm generating capacity resource. The Company assumed that NUGs or any other non-Company owned resource without a contract with the Company are available to the Company at market prices; therefore, the Company’s optimization model may select these resources in lieu of other Company-owned/sponsored supplyor demand-side resources should the market economics dictate.

“Although this is a reasonable planning assumption, parties may elect to enter into future bilateral contracts on mutually agreeable terms. For potential bilateral contracts not known at this time, the market price is the best proxy to use for planning purposes.”

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.