Exelon Generation files plans to retire Mystic Generating Station in 2022
Exelon Generation recently announced that it filed with the ISO New England Inc. (ISO-NE) to retire the natural gas- and oil-fueled Mystic Generating Station’s Units 7, 8, 9 and the Jet unit on June 1, 2022.
Absent any regulatory solutions, Exelon said, the units will not participate in the Forward Capacity Auction scheduled for February 2019.
ISO-NE recently indicated that it may propose interim and long-term market rule changes that would enable units like Mystic 8 and 9 to recover the cost of securing fuel. If ISO-NE filed these changes and the Federal Energy Regulatory Commission (FERC) approved them in a timely manner, Exelon Generation has stated that it may reconsider the retirement of the Mystic units.
“Mystic has a strong track record as a source of reliable, around-the-clock electric supply to over two million homes in New England,” Ron DeGregorio, president of Exelon Power, said. “However, the ISO-NE market fails to properly reflect the reliability and fuel security benefits that these power plants provide to the region.”
Exelon stated that it will hold informational meetings with employees over the next several months about the retirement process.
Exelon Generation also announced an agreement to purchase ENGIE North America’s LNG import terminal, The Everett Marine Terminal, to ensure a reliable supply of fuel to Mystic Units 8 and 9 until their retirement. The terminal will continue to provide LNG to other gas utilities, marketers and other market participants in New England.
Exelon expects the transaction to close in the fourth quarter of 2018, pending LNG import authorization from the U.S. Department of Energy for and, as necessary, authorization from the U.S. Department of Justice.
Mystic Generating Station is a 1,998 megawatt (MW) plant located in Charlestown, Massachusetts. Mystic 8 and 9 are 2-on-1 combined cycle gas turbines and have capacities of 703 MW and 711 MW, respectively. Mystic 7 is a 576 MW unit and is fueled by either natural gas or oil, depending on market conditions. Mystic Jet is an 8 MW oil-fueled unit that is run during periods of high demand. Units 1-6 are decommissioned.
