FERC last week set hearing and settlement proceedings for a new Ohio merchant plant, saying it had not provided sufficient backing for its reactive power revenue requirement (ER18-92, EL18-32).

The 747-MW Carroll County Energy combined cycle plant, expected to go in service this month, is seeking compensation for its generator, associated exciter equipment, step-up transformers and other equipment under allocation factors representing their contribution to both reactive service and real power.

The commission said the plant’s owners had not demonstrated that its proposed revenue requirement was just and reasonable. “CCE’s filing has no underlying support for the costs claimed for this new generation facility, and the balance of plant investment allocator and the accessory electrical equipment allocator may be excessive. We further note that the components of the accessory electrical equipment are not provided,” the commission wrote.

FERC said that, if no settlement is reached, it expects to issue a decision within eight months of the filing of briefs opposing exceptions to the initial decision by an administrative law judge. “If the presiding judge were to issue an initial decision by July 31, 2018, we expect that, if the proceeding does not settle, we would be able to render a decision by May 31, 2019.”

The plant’s owners include TIAA, Chubu Electric Power, Ullico, Prudential Financial and Advanced Power, a Boston-based development company that oversaw construction and will manage the start of commercial operations. Chairman Kevin McIntyre did not participate in the decision.

— Rich Heidorn Jr.