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Rights For NRG ‘Expired,’ NYISO Says

DUNKIRK — NRG Energy Inc.’s decision to deactivate its Dunkirk power-generating has led to the recent bombshell cost of $114 million for the facility to tie back in to the state transmission system, according to the top official at the New York Independent System Operator.

Brad Jones, president and chief executive officer of the NYISO, notes in a commentary in the Dunkirk Observer newspaper that in deactivating the city plant, NRG lost its interconnection abilities. “The NYISO’s tariff allows facilities to maintain interconnection rights to the grid for up to three years after deactivation,” Jones writes. “However, NRG made the business decision to keep the facility out of service to the point where their original interconnection rights expired.”

Jones’ letter is in response to the comments by Chautauqua County Executive George Borrello who last week criticized the NYISO for the high price tag tied to the potential repowering of the plant from coal to natural gas. Borrello called the cost and the agency “shameful.”

News regarding the uncertain future of the city facility came earlier this month when NRG officials admitted the cost for the transmission was putting the project in jeopardy. Since that announcement, area and state leaders have vowed to continue to efforts to repower the plant.

Without shutting down the plant, Jones says the costs would have been much lower.

“It is important to note that had NRG reactivated the facility within three years following the company’s decision to deactivate the plant, it would not have been treated as a new facility and could have avoided the need for the system upgrades.”

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