Some advocates claim markets can help reduce electricity prices by changing the design of wholesale auctions. However, taking a pay-as-bid approach could make matters worse.
plant, excluding working capital adjustments. The cogeneration plant provides steam, processed water, and a small percentage of its electrical generation to the Corpus Christi Sherwin Alumina plant, leaving the majority of the base-load generation available for sale in ERCOT. The current operator, DPS Gregory, will continue to operate the plant until NRG operators take over. NRG acquired the plant from a consortium of Atlantic Power, John Hancock Life Insurance, and Rockland Capital.
Three commercial nuclear power plants operated by the Constellation Energy Nuclear Group (CENG) are expected to be operationally integrated into the Exelon Generation nuclear fleet over the next nine months. The plants include the R.E. Ginna plant in Ontario, N.Y., Nine Mile Point station in Scriba, N.Y., and the Calvert Cliffs plant in Lusby, Md. Under the terms of the agreement, the CENG plant operating licenses will be transferred to Exelon; Exelon will integrate the CENG fleet into its management organization; Exelon will lend $400 million to CENG to support a special dividend to Électricité de France (EdF); and EdF will retain an option to sell its CENG stake to Exelon at fair market value between 2016 and 2022. CENG will remain a legal entity governed by a board of directors comprising five EdF and five Exelon board members. Exelon will continue to own 50.01 percent of CENG, and EdF 49.99 percent. The companies filed an application with NRC to transfer the operating licenses from CENG to Exelon. Review and approval is expected to take six to nine months.
EdF Renewable Energy entered a membership interest purchase agreement with Lincoln Renewable Energy to acquire the first, 200-MW phase of the up-to 500-MW Hereford wind project in Texas, with an option to acquire the second phase of the project. Construction is expected to commence on the first phase later this year in order to qualify for federal tax credits. The project, covering approximately 15,000 acres in Deaf Smith County southeast of the town of Hereford, will connect with CREZ (Competitive Renewable Energy Zone) transmission lines to bring wind generation from the Texas Panhandle to load centers across the state. EdF Renewable Energy is negotiating to secure a long-term, fixed-price hedge agreement for the expected output of the first phase of the project.
ABB completed its previously announced acquisition of Power-One, a provider of renewable energy and power conversion and management systems. ABB says the Power-One portfolio of technologies complements ABB’s business. Power-One employs almost 3,500 people, mainly in China, Italy, the United States, and Slovakia.
Mainstream Renewable Power closed a deal to sell its 7.65-MW Carrickeeny wind farm to IKEA Ireland. The project, located in Leitrim in the northwestern part of Ireland, is now under construction. Startup is expected in early 2014, at which point IKEA will purchase the plant. As part of the deal Mainstream will continue operating and maintaining the wind farm on behalf of IKEA for its 20-year lifespan. The acquisition will increase to 137 the total number of wind turbines that the IKEA Group has committed to owning and operating.
NRG Energy acquired Energy Curtailment Specialists (ECS), a