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
Recommend this article Recommend this article () You recommended this article You recommended this article ()
Follow Power Engineering on Twitter

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.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

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

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Power Industry Wire News

Vectren Corp. Closes Sale of Its Wholly Owned Coal Mining Subsidiary, Vectren Fuels

Vectren Corp. Closes Sale of Its Wholly Owned Coal Mining Subsidiary, Vectren Fuels

Hawaii Energy Offers State's First-Ever Energy Efficiency Auction

Hawaii Energy Offers State's First-Ever Energy Efficiency Auction

Virtu Investments' Third Apartment Fund Oversubscribed at $48 Million

Virtu Investments' Third Apartment Fund Oversubscribed at $48 Million

Range Declares Quarterly Dividend

Range Declares Quarterly Dividend

Top Industrial Market News Stories for the Fourth Week of August 2014, an Industrial Info News Alert

Top Industrial Market News Stories for the Fourth Week of August 2014, an Industrial In...

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 >>