FERC okays waiver related to shutdown of six Virginia Electric coal units

ferc

The Federal Energy Regulatory Commission on March 26 granted a waiver to Virginia Electric and Power d/b/a Dominion Virginia Power related to the upcoming deactivation by the end of this year of coal-fired units at the Chesapeake and Yorktown power plants.

On Jan. 27, this Dominion Resources (NYSE: D) subsidiary filed a petition for limited waiver of the deadlines for the must-offer exception request set forth in Section 6.6(g) of Attachment DD of the PJM Interconnection Open Access Transmission Tariff. Specifically, VEPCO sought a waiver for Chesapeake Energy Center Units 1-4 and Yorktown Units 1-2 to secure an exception to the must-offer requirement for the units from the base residual auction commencing May 2014 and for the 2017-18 delivery year.

VEPCO is the owner of the Chesapeake Energy Center generation station, which includes four coal-fired units with a total rated net demonstrated capacity of 576 MW, located in Chesapeake, Va. VEPCO is also the owner of the Yorktown station, which includes two coal-fired units with a total rated net demonstrated capacity of 323 MW, located in Yorktown, Va.

VEPCO told FERC that it made the determination to deactivate the units because their operation is no longer economically justifiable, in part because they require additional environmental controls to comply with the U.S. Environmental Protection Agency's Mercury and Air Toxics Standards (MATS), which have an initial compliance deadline in April 2015.

VEPCO said it timely submitted and received an exemption for the units for the 2015-2016 base residual auction and for the 2016-2017 base residual auction. However, VEPCO said it inadvertently did not submit its request for exception for the 2017-2018 base residual auction until Jan. 17, 2014, so therefore it needs a limited waiver of Section 6.6(g) of Attachment DD of the Tariff.

VEPCO explained that this request reflects the deactivation filing submitted to PJM and the PJM Independent Market Monitor (IMM) stating that the units would be deactivated on or around Dec. 31, 2014, and that it is necessary to allow PJM and the IMM to process VEPCO's request for an exception for the units to the must-offer requirement for the 2017-2018 base residual auction.

Said the March 26 FERC approval: “After discovering its error, VEPCO timely submitted a final exception request for the Units. VEPCO plans to deactivate the Units on or around December 31, 2014 and has already submitted and received an exemption for the Units for both the 2015-2016 base residual auction and the 2016-2017 base residual auction. Therefore, we find that granting waiver will correct an error made in good faith. We also find it appropriate to grant this one-time waiver of the deadline for submitting a preliminary exception request for delivery year 2017-18 for the Units because of the limited scope of VEPCO's request and because the waiver will allow VEPCO and PJM to remedy a concrete problem of otherwise having to offer electric energy from its units that are to be deactivated. We further find that granting the waiver will have no undesirable consequences for PJM or any other third parties. We note that no party has opposed the request.”

VEPCO has said for some time that it plans to shut the Yorktown and Chesapeake coal units for MATS compliance. Also for clean-air reasons, it recently converted three small coal-fired plants to burning biomass, and is converting the Bremo Bluff coal plant to natural gas.

This article was republished with permission from GenerationHub.

Sponsored by FLSmidth

Related Articles

Slogging Through a Million-Plus Comments

The comment period on the controversial Clean Power Plan (CPP) ended Dec. 1, 2014. EPA received more than 1.5 million comments on docket # EPA-HQ-OAR-2013-0602-0001.

Setting the Bar at Watts Bar

Bob Williams, TVA's Watts Bar Fukushima project manager, was in a tight spot in August 2012 when the U.S. Nuclear Regulatory Commission (NRC) issued its orders concerning required nuclear plant modifications in response to the Fukushima Daiichi accident.

Follow Power Engineering on Twitter

Latest News

 MS Power coal-to-gas conversion nearly complete

MS Power coal-to-gas conversion nearly complete

A coal-to-gas conversion project at a power plant operated by Mississippi Power is nearly com...
 North Anna nuclear power plant shuts down

North Anna nuclear power plant shuts down

Unit 1 of the North Anna nuclear power plant automatically tripped offline Feb. 26 as workers...
 Oklahoma leaders looking for more wind regulations

Oklahoma leaders looking for more wind regulations

With wind energy production in full swing in Oklahoma, legislative leaders are looking to imp...

Second-oldest nuclear reactor in S. Korea OK to restart

South Korea’s nuclear watchdog approved a plan to restart a 679-MW nuclear power unit that wa...
 SunEdison to bring power to 20Mn people by 2020

Video: SunEdison to bring power to 20Mn people by 2020

SunEdison, Inc. (NYSE: SUNE) announced plans to bring electricity to 20 million people in und...
02-25 Henry Hub Average Natural Gas Spot Prices

02/25 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...
 GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez says it received guarantees from Areva for planned nuclear reactors in Turkey and wi...
 CB&I: We’re not liable for $247mn nuclear power project penalties

CB&I: We’re not liable for $247mn nuclear power project penalties

Chicago Bridge & Iron (CB&I, NYSE: CBI) say they should not be liable for any of the ...

Power Engineering Current Issue

02/01/2015
Volume 119, Issue 2
1502PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Power Industry Wire News

Intergraph(R) CADWorx & Analysis University Express in India During March to Include Sessions on Designing Plants and Offshore Facilities

Intergraph(R) CADWorx & Analysis University Express in India During March to Include Se...

What's Coming to the Energy Sector in 2015?

What's Coming to the Energy Sector in 2015?

SL Series Is Tinius Olsen's New Generation of Hydraulic Universal Testing Machines

SL Series Is Tinius Olsen's New Generation of Hydraulic Universal Testing Machines

Manitok Energy Inc.'s CEO Mass Geremia Interviewed by The Energy Report

Manitok Energy Inc.'s CEO Mass Geremia Interviewed by The Energy Report

UGE International Ltd. Announces Private Placement

UGE International Ltd. Announces Private Placement

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>