New York generators urge FERC to block certain capacity sales
Washington — New York generators say resources in the PJM Interconnection should not be allowed to sell installed capacity into the New York Independent System Operator across transmission lines owned by companies that got out of their obligation to pay for the contentious Bergen-Linden Corridor project.
“Such price suppression could … significantly contribute to the premature retirement of otherwise economic resources that are needed for reliability and resiliency in the NYISO and PJM and will likely stymie investor confidence,” IPPNY said. BLC PROJECT
The complaint is linked to who has to pay for the $1.2 billion BLC transmission project. On July 19, FERC launched settlement talks to figure out who should pay for the project.
PJM originally spread the cost of the project among Consolidated Edison Company of New York, Linden VFT, Hudson Transmission Partners and Public Service Electric and Gas. But one by one, most of the parties got out of their obligation to pay for the project, leaving PSEG — and subsequently New Jersey ratepayers — to foot much more of the bill.
Linden VFT and HTP got out of paying for the project by converting their firm transmission withdrawal rights with non-firm TWRs. Because of this conversion, PJM can curtail deliveries over Linden VFT’s and HTP’s facilities if the energy is needed in PJM, IPPNY argued. Since delivery is not guaranteed, resources should not be allowed to send installed capacity from PJM into New York over Linden VFT’s and HTP’s transmission lines, the group said. Instead, these resources should be offered into PJM’s capacity market, the complaint said.
But NYISO is still allowing the sale of ICAP over these facilities based on PJM’s assurances that those deliveries will not be curtailed, the group argued. NYISO’s decision is affecting clearing prices and hurting reliability in both PJM and NYISO, the complaint said.