Dynegy seeks FERC okay related to three-year suspension of Baldwin 1 coal unit

Dynegy Midwest Generation LLC on Sept. 8 filed with the Federal Energy Regulatory Commission a revised Rate Schedule that takes into account the planned suspension of operation as of Oct. 17 of the coal-fired Unit 1 of the Baldwin power plant in Illinois.

DMG is amending its Reactive Service revenue requirement to reduce the annual revenue requirement for Reactive Service in connection with the suspension of Unit 1 at Baldwin. Baldwin is interconnected to the transmission system of Ameren Illinois, and located within the Midcontinent Independent System Operator (MISO) footprint.

The filing said: “DMG respectfully requests that the Commission accept the Revised Rate Schedule for filing and requests expedited treatment and any necessary waivers of the Commission’s regulations to permit an effective date of October 17, 2016, to coincide with the start of the Baldwin Suspension on that same date.”

The Baldwin plant is an approximately 1,892 MW (gross) coal-fired baseload facility. It has three units, each of which is about the same size. The Generation Hub database puts the Unit 1 net capacity at 586 MW. The Dynegy filing puts Unit 1’s “real power” capacity at 623 MW.

On April 21 of this year, Dynegy Marketing and Trade LLC (DMT) submitted to MISO an Attachment Y Notification of Potential Generation Resource/SCU Change of Status covering the proposed suspension of Baldwin Unit 1 effective Oct. 17, and the resumption of operations at Baldwin Unit 1 on Oct. 17, 2019. In a June 27 letter, MISO notified DMT that the proposed suspension would not result in violations of applicable reliability criteria and that the unit would not need to be designated as a System Support Resource unit needed for local grid support.

Dynegy (NYSE: DYN) had announced May 3 that it plans to shut down multiple Illinois coal-fueled units after they once again failed to recover their basic operating costs in the most recent MISO capacity auction. Units 1 and 3 at the Baldwin plant in Baldwin, and Unit 2 at the Newton Power Station in Newton, are expected to shut down operations over the next year. If MISO determines the units aren’t needed for reliability, Dynegy said May 3 that it expects to shut down operations at Newton Unit 2 in September 2016, Baldwin Unit 1 in October 2016, and Baldwin Unit 3 in March 2017.

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.