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Mon Power issues RFP for generation, solicits bids for hydro plant stake

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Mon Power issues RFP for generation, solicits bids for hydro plant stake

FirstEnergy Corp. utility Monongahela Power Co. announced Dec. 16 that it is seeking proposals for 1,300 MW of generation capacity and up to 100 MW of demand-response resources in its West Virginia service territory. In addition, Mon Power is soliciting bids for its ownership stake in a Virginia hydroelectric plant.

Mon Power said the proposals will be received and reviewed early next year.

The request for proposals for the additional capacity is tied to a projected shortfall that the utility laid out in its integrated resource plan, or IRP, filed with West Virginia regulators. Mon Power predicted a capacity shortfall beginning in 2016 and increasing to more than 850 MW by 2027.

In approving the IRP, the Public Service Commission of West Virginia did not rule on concerns raised by intervenors that FirstEnergy is seeking to transfer the 1,300-MW Pleasants coal plant to rate base. The plant is owned by competitive subsidiary Allegheny Energy Supply Co. Mon Power entered into a settlement agreement in 2013 to purchase a 79.46% ownership interest in the 1,984-MW Harrison Power Station from Allegheny Energy.

FirstEnergy, which is seeking an exit from merchant generation, has said it will work with regulators on securing financial support for the Pleasants plant. Mon Power said it will seek regulatory approval from the PSC and FERC after selecting a proposal or proposals.

"The sale of Mon Power's ownership interest in the Bath facility is being considered because recent changes in the [PJM Interconnection] capacity market will subsequently diminish the cost-effectiveness of using the facility to provide generation and capacity revenue to customers," Mon Power said in its news release. The utility said if it identifies an acceptable buyer for its 487-MW stake in the Bath County project in Warm Springs, Va., it would seek necessary regulatory approvals to complete the sale.