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2 October 2006 -- PPL Wallingford Energy LLC and other parties filed a settlement agreement Sept. 29 with the Federal Energy Regulatory Commission (FERC) to resolve payments due to PPL for electricity generated by a power plant in southwestern Connecticut.
The settlement provides that PPL will be paid $44 million -- less $1 million already received -- for electricity generated by four of the five generating units at the Wallingford plant from February 2003 through May 2006 under a cost-of-service "reliability must run" (RMR) agreement.
ISO New England will make those payments, plus interest, over a two-year period.
In addition, PPL would be entitled to receive about $1.8 million per month from ISO New England as of June 1, 2006, for the fixed costs of the four units under a revised RMR agreement until the agreement ends.
Under terms of the settlement, PPL expects the revised agreement to remain in effect through May 31, 2007. At that time, PPL expects to receive revenue for the Wallingford plant in ISO New England's Locational Forward Reserve Market, which provides revenue to quick-starting plants such as Wallingford for their ability to begin generating power on short notice to meet power reliability needs in the region. Under certain conditions, the revised agreement could extend beyond May 31, 2007.
Wallingford is a 245-MW, natural gas-fired power plant that has been in operation since 2002.
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