FERC on Tuesday approved a MISO system support resource (SSR) agreement that will keep a Wisconsin coal plant operating for reliability purposes.

Under the agreement, Manitowoc Public Utilities will continue to operate its Lakefront Unit 9 coal-fired unit, effective Feb. 1 (ER23-914).

In a separate order, the commission questioned Manitowoc’s request for $1.03 million in monthly compensation for the plant, saying it might be overcharging customers for the one-year SSR. FERC established hearing and settlement judge procedures to settle the matter (ER23-977).

MISO told the commission that it would face unresolved thermal overloading and steady-state voltage issues on 12 constraints if Lakefront 9 was permitted to suspend operations as scheduled. The 63-MW unit began operations in 2006 and serves load in Manitowoc, Wis. MISO said there weren’t any nearby resources available to redispatch, viable transmission reconfiguration options, or enough demand-side management to avoid an SSR. (See MISO Proposing 2nd SSR Agreement for Retiring Coal Unit.)

FERC found that the RTO had no “feasible alternatives that could resolve the identified reliability problems … to avoid the need for the Lakefront Unit 9 SSR agreement.” The grid operator uses the agreements to keep generators online past their retirement dates as a last-resort measure for system reliability.

Manitowoc intended to suspend the unit and convert it for renewable fuel sources. It said it plans to bring the unit back to full commercial operation by the end of January 2026 “when the alternative fuel source becomes available in sufficient quantity.”

The municipal utility said it needs more than $1 million to cover operations and maintenance labor expenses, administrative expenses, non-labor maintenance expenses, site security, insurance, carrying charges and various fees and taxes.

Wisconsin Public Service and WPPI Energy protested Manitowoc’s proposed amount, arguing the utility showed no basis for its cost projections and estimates.

WPPI said Manitowoc used “unsubstantiated forecast inputs” in its cost-of-service model, “impeding the commission and consumers from undertaking a proper evaluation of the proposed charges.”

FERC agreed. It said its preliminary analysis indicated that Manitowoc’s requested amount might be unreasonable.

The SSR designation is MISO’s second within a year. In October, it received FERC permission to instate an SSR agreement for Ameren Missouri’s 1.2-GW Rush Island coal plant. The commission also cast doubt on the reasonableness of the monthly compensation in that proceeding.   (See FERC: Rush Island Plant’s Extension Essential to MISO Reliability.)