ReEnergy Chateaugay power plant in New York sold, to be dismantled

ReEnergy Chateaugay LLC sent a June 9 letter to the New York State Public Service Commission saying it won’t be able to put its power plant up as as a “Maintenance Resource.”

The commission on July 22, 2015, had issued an order to that effect. “In the Order the Commission offered ReEnergy Chateaugay LLC (‘ReEnergy’) a maintenance resource contract under the Renewable Portfolio Standard (‘RPS’) program, and authorized the New York State Energy Research and Development Authority to enter into an RPS maintenance resource contract conditioned upon ReEnergy demonstrating that it had entered into a long term power purchase agreement (‘PPA’) with an independent third party that meets certain requirements set forth in the Order.

“After protracted efforts to secure a PPA as contemplated by the Order, ReEnergy regretfully informs the Commission that it has been unable to enter into a PPA that meets the requirements set forth in the Order. As a result, ReEnergy hereby declines the Commission’s offer of an RPS maintenance resource contract pursuant to the Order.

“For your information, earlier this week ReEnergy sold the Chateaugay facility, and the purchaser informed ReEnergy that it does not intend to resume operations at the facility. The purchaser’s plans are to dismantle the facility and repurpose the components thereof at other energy generation facilities.

“We would like to express our appreciation to the Commission for its support of the ReEnergy Chateaugay facility, and regret that this facility will not be able to contribute to New York State’s laudable fuel diversity and renewable energy RPS goals.”

The June 9 letter is signed by William Ralston, the company’s Chief Risk Officer, (518) 810-0206, wralston@reenergyholdings.com.

ReEnergy Chateaugay also sent a brief May 31 notice to the New York ISO about the official retirement of this facility. “This letter serves to provide notice that ReEnergy Chateaugay LLC hereby transitions the generator NEG NORTH_KES_CHATEGAY (PTID 23792) from its current mothball state to a retired state effective May 31, 2016,” said the notice, signed by Ralston.

ReEnergy Chateaugay, the owner and operator of the idled ReEnergy Chateaugay Biomass-to-Energy facility located at Chateaugay, N.Y., said in a June 2013 filing with the New York State Public Service Commission that it planned to mothball the 19-MW (net) facility. 

The facility opened in 1993 and ReEnergy’s parent company, ReEnergy Holdings LLC, acquired the ownership interests from Boralex Industries in December 2011.

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.