The New York Public Service Commission staff on Dec. 28 asked FERC to throw out a proposal to keep a doomed coal-fired power plant operating for several months at above-market rates (ER16-81).

The PSC said FERC should reject the proposal made by NRG Energy to keep the 380-MW Huntley plant in Tonawanda, N.Y., going past March 1. NRG is seeking a cost of service agreement for reliability-must-run service that could keep Huntley running for an additional three months or longer. (See NRG Seeks Change on Huntley Reliability Contract.)

NRG had apparently pinned its hopes on concerns that the area would need voltage support until National Grid completes transmission upgrades. Even that justification for Huntley’s operation has fallen away.

“NYISO and National Grid recently exchanged correspondence which demonstrates conclusively that even without the transmission projects (including its capacitor banks and reactors), facility deactivation will not give rise to any local or bulk system reliability need on or after the proposed March 1, 2016, retirement date,” the state commission wrote. “Consequently, there is no basis to consider — much less approve — an RMR agreement that would subsidize facility operation after the proposed retirement date.”

NRG spokesman David Gaier said the company would be willing to negotiate an RMR agreement with NYISO and National Grid, but he seemed resigned. “At this moment … the Huntley station will retire as previously announced on March 1,” he said.

— William Opalka