Generation company: Legal considerations
- ComEd, Chicago, IL (United States)
In the absence of a power exchange and generation open market experience, the generation company (Genco) operates under commercial contracts. The scope and terms of the contracts determine what and how the Genco does and how much the Genco is compensated. For ComEd`s first two plant sales, power purchase and facilities agreements form the bases for the commercial relationships. Some of the successes and problems are reviewed in this paper. A power Purchase Agreement (PPA) will deal with the capacity, energy, and any other products committed by the Genco to the buyer. For capacity payments, the committed capacity is probably fixed. How the included capacity relates to providing ancillary services such as dispatch and what happens to uncommitted capacity. The PPA also deals with operational issues, fuel, if any, and compensation and cost pass-throughs, if any. A facilities agreement specifies how the Genco interfaces with the transmission grid. This includes a point of demarcation, any shared facilities, and operating services by the Genco to the transmission owner. The sale of Kincaid and State Line was commenced with solicitation of bids in 1995 and contract signing in April 1996. The regulatory approval process delayed closing until the end of 1997 for one plant and February 1998 for the other. The sale price was set at the book value of the plant with the pricing under the PPA as the variable.
- Research Organization:
- Illinois Inst. of Tech., Chicago, IL (United States)
- OSTI ID:
- 696696
- Report Number(s):
- CONF-990410--PROC.-Vol.1
- Country of Publication:
- United States
- Language:
- English
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