FERC seeks plan to keep power plants on

Federal energy regulators have asked NRG Energy to file a plan showing how it will keep running its New England power plants even if its power marketing unit runs out of cash and is forced to liquidate.

NRG, a subsidiary of Xcel Energy Inc., has warned that its Power Marketing Inc. (PMI) unit may be forced to liquidate unless it can break a money-losing contract with Northeast Utilities' Connecticut Light and Power utility.

"NRG is required to file with the commission its plans ... for purchasing fuel ... to assure continued performance of its generating units in the event of PMI's liquidation," the Federal Energy Regulatory Commission told NRG in a letter.

The commission gave NRG until July 24 to submit the plan.

NRG officials said they had just received the letter and could not yet comment on it.

The FERC ordered NRG on June 25 to continue selling power to the Connecticut utility, while a commission judge considers the matter within 120 days.

NRG, which has tried to cancel the CL&P contract in federal court in New York and Washington, has said PMI loses about $500,000 a day from the CL&P deal because it must pay more for the electricity in the open market than it receives from the Connecticut utility.

PMI, which delivers 45 percent of the power used by CL&P's 1.1 million customers, buys and sells power in the open market, purchases the fuel burned at NRG's power plants and sells the electricity generated at those plants.

NRG owns about 2,000 megawatts of generation in New England, most of it located in Connecticut, which can produce enough power for about 2 million homes.

The FERC sent the letter to NRG in response to a filing by the New England grid operator, ISO New England, which said the NRG plants must continue operating to avoid possible blackouts in Connecticut.

Reuters