FERC denies $2B gas plant waiver in PJM fast-track review
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- FERC denied Advanced Power Services' waiver request for the $2B Chestnut Run gas-fired project in Carroll County, Ohio, ruling the proposed equipment swap would harm third parties by causing delays in PJM's review of other generator interconnection requests, including those in the RRI.
- FERC quoted PJM saying studies resulting from equipment changes would introduce "substantial delays to Transition Cycle #2" and have a "ripple effect on the remainder of PJM's [interconnection study] cycle schedule."
- Advanced Power couldn't acquire the turbines originally specified for the project, prompting a waiver request to reduce maximum output by 55 MW to 1.245 GW and lower the project's capacity interconnection rights; the company is owned by ArcLight Capital Partners.
- The RRI fast-track process initially included 51 projects totaling about 9.3 to 11.8 GW; 41 projects totaling 7.9 GW in nameplate capacity remain and are being reviewed in PJM's "transition cycle 2," scheduled to wrap up early next year with interconnection agreements.
- PJM set a "decision point" for Tuesday during Transition Cycle #2, when some project developers may opt to withdraw their projects from the process.
- After clearing its interconnection backlog, PJM in April launched the first cycle under its reformed queue process, which covers 811 generating projects totaling about 220 GW.
Why it matters: FERC's denial locks Advanced Power into its originally specified 1.245 GW configuration and bars mid-process equipment changes for other PJM fast-track developers—a critical precedent as Transition Cycle #2 hits its Tuesday withdrawal decision point and the broader 811-project, 220 GW reformed queue gets underway.
