By Editors of Power Engineering
Exelon Generation filed notice with ISO New England to retire the natural gas-fired units 7, 8 and 9 at Mystic Generating Station, as well as the jet-fired unit at Mystic, by June 1, 2022. The units total 2,000 MW.
The company noted if “regulatory reforms to properly value reliability and regional fuel security” do not materialize, the units wouldn’t participate in the February 2019 capacity auction.
In the closure announcement, Exelon said changes to market rules are necessary because Mystic 8 and 9 cannot recover future operating costs, including fuel costs. ISO-NE is currently mulling interim and long-term market rule changes as a result of reliability risks identified in the ISO’s fuel security report.
Additionally, Exelon announced an agreement to purchase ENGIE North America’s LNG import terminal. Assuming regulatory review, the transaction is expected to close in the fourth quarter of 2018.
