NEPGA Answers NTE Connecticut LLC Motion to Stay – Docket No. ER22-355-001

On January 18, 2022, NEPGA filed an Answer to NTE Connecticut LLC’s (owner and developer of the Killingly Energy Center (KEC)) Emergency Motion to Stay and Request for Rehearing in response to FERC’s order accepting ISO-NE’s termination of the KEC Capacity Supply Obligations (CSOs) and qualification for FCA 16 (Docket No. ER22-355-001). On January 4, FERC accepted ISO-NE’s termination filing, finding that ISO-NE had sufficiently demonstrated that KEC would not be in commercial operation by the end of the second Capacity Commitment Period for which KEC had acquired a CSO (KEC first cleared in FCA 13). FERC agreed that KEC would not be in operation by May 31, 2024, the last day of the FCA 14 Capacity Commitment Period, thus triggering the Tariff conditions for CSO termination. In support of its Stay request, NTE claims that it will suffer irreparable harm if the Stay is not granted, that other third parties will not be harmed, and that it is in the public interest. NTE asks that in granting the Stay, FERC find that KEC should be qualified for FCA 16, commencing on February 7, under the seven-year capacity price lock awarded in FCA 13.  In its Answer, NEPGA responds to NTE’s claims of no third-party harm, explaining that both existing and new capacity resources would be displaced by the continuing to clear KEC in the FCA when it has shown no progress towards commercial operation. NEPGA also explains that existing capacity resources would suffer financial harm through the price suppression caused by offering Killingly as a price-taker in the auction (and thus, per the Tariff, offered into the FCA at $0/kW-month in each year of the price lock period). NEPGA further notes FERC’s general policy to not grant motions to stay, in the interest of promoting the decisiveness and finality of FERC order. ISO-NE also answered NTE on Tuesday, explaining that NTE will not suffer irreparable harm if FERC denies the motion to stay, in part because NTE could seek to requalify Killingly for a future FCA.

Posted in Document Archive, Federal Filings, Recent Filings.