NRG Receives Subsidized Ratepayer Support to Repower Power Plant

The New York State Public Service Commission announced that it has given its regulatory approval to repower the Dunkirk power plant, owned by NRG Energy, under a $140 million agreement between National Grid and NRG.

"The agreement will result in a cleaner power plant at Dunkirk that will meet reliability needs, reduce costs for consumers, create jobs and stabilize the local property tax base ... Repowering Dunkirk will produce significant benefits in terms of enhanced system reliability, congestion relief, and emissions reductions. Our decision to allow National Grid to recover the costs of its agreement with Dunkirk is in the public interest and it meets our obligation to ensure safe and adequate service," said Commission Chair Audrey Zibelman.

Under the terms of the agreement Dunkirk and its parent company NRG Energy, Inc. will refuel three coal units at the facility to add the capability to generate 435 MW using natural gas. Currently only one 75 MW unit is operating on coal.

With its decision, the Commission approved National Grid’s allocation and recovery of costs associated with refueling the Dunkirk generating facility under a 10-year agreement. National Grid’s agreement with Dunkirk anticipates the refueled facility will begin operations in the fall of 2015.

In early 2012, NRG announced plans to mothball its Dunkirk power plant, which is more than 50 years old, saying it was no longer economical to operate.

Case 12-E-0577