By William Opalka
The union representing workers at the Brayton Point Power Station say the plant’s pending closure caused massive price spikes in recent capacity auctions and that the results of the ISO-NE Forward Capacity Auction 9 should be voided (EL15-1137).
Utility Workers Union of America Local 464 filed a protest Monday with the Federal Energy Regulatory Commission seeking to cancel the auction that was held in February for the 2018-2019 capacity commitment period. Comments on the ninth auction were due Monday. (See ISO-NE Files Capacity Auction Results; Comments due April 13.)
They charge that the plant’s former owner, Energy Capital Partners, removed the 1,510-MW plant in Somerset, Mass., from FCA 8 and FCA 9 to inflate prices offered for other generation plants that it owned. ECP in 2013 said the plant would close in 2017.
“Energy Capital Partners intentionally raised the prices to be paid by purchasers of capacity market-wide in the FCA 8 auction by approximately $1.6 billion to $2.4 billion — an approximately 200% increase over prices in the prior annual capacity auction — and increased market-wide capacity prices by an additional approximately $1 billion in the FCA9 auction,” the protest states.
Results at FCA 9 came in at just about $4 billion, $1 billion higher than FCA 8 from February 2014. FCA 8 saw prices triple, to just over $3 billion from the previous year’s results of about $1 billion.
UWUA says the “illegal” actions by ECP were a violation of the ISO-NE Tariff. Retirements of generation plants that result in higher prices and profits for the owners’ other plants are only allowed if the closed plant was uneconomic on its own. Brayton Point’s sale to Dynegy was announced in 2014 as part of multi-state acquisition of four other plants totaling 1,902 MW. (See Dynegy Becomes New England Player Overnight.)
Dynegy reiterated its intention to close Brayton Point immediately after the sale was announced. The union cited a presentation to investors made last summer by Dynegy that said Brayton Point would have operating profits of $105 million in 2015.
The union made a similar protest a year ago when FERC began its review of FCA 8. The results became effective as an operation of law when the commission was deadlocked 2-2. (See FERC Commissioners at Odds over ISO-NE Capacity Auction.)
An amended complaint filed by the union in February did not prompt any further commission action (ER14-1409).
FERC last month approved the transfer, saying it had not found credible evidence of the exercise of market power and had already rejected the union’s claims. (See Dynegy Wins FERC OK for $6.25B Duke, Energy Capital Partners Generation Deals.)