In an uncommon transfer, federal power regulators have launched a probe of New England’s electrical grid operator over funds to a Massachusetts energy plant that filed for chapter in March, the grid operator mentioned.
ISO-New England in Holyoke mentioned the Federal Energy Regulatory Commission (FERC) is investigating potential fraud and violations of the grid operator’s guidelines for charging for electrical energy prices associated to a Massachusetts energy plant.
“FERC has alleged that the project developer engaged in a fraudulent scheme to deceive the ISO and the market and failed to provide the ISO with complete and relevant information,” ISO mentioned.
Regulators additionally will examine the ISO’s function in administering an influence public sale referred to as the capability market, ISO mentioned. It has “cooperated fully” with the investigation, ISO mentioned.
ISO mentioned it has been restricted by confidentiality agreements in disclosing particulars of the investigation, however acted after Salem Harbor Power Development, previously referred to as Footprint Power, filed a number of chapter courtroom motions.
FERC wouldn’t remark. Salem Harbor, a pure gas-fired energy plant outdoors Boston, didn’t instantly reply to an electronic mail and cellphone name in search of remark.
FERC is investigating allegations that Salem Harbor Power Development failed to supply correct and full info to ISO New England forward of the plant’s industrial operation date.
In 2017, Salem Harbor missed its proposed industrial operation date, but collected market funds underneath market guidelines that existed on the time, ISO mentioned. ISO, citing info from Salem Harbor’s chapter submitting, mentioned FERC’s preliminary findings allege that Salem Harbor Power Development violated ISO New England and FERC guidelines by not updating all info related to the ISO’s analysis of the feasibility of the mission and its potential to satisfy the May 31, 2017, industrial operation date.
“FERC also alleges that the project engaged in a fraudulent scheme to deceive the ISO and the market into believing that the project would meet the commercial operation date to ensure that the facility would receive the capacity payments,” ISO mentioned.
FERC alleges that the ISO ought to have recognized Salem Harbor Power Development can be late, that it gave the developer recommendation serving to the mission keep away from the results of failing to satisfy its industrial operation date and that it ought to have compelled Salem Harbor Power Development to promote its provide obligation.
ISO New England denies the allegations and requested regulators to dismiss the matter because it pertains to its actions. It mentioned it has modified capability market guidelines to incorporate an automated monetary penalty for sources which are late.
Stephen Singer will be reached at [email protected].
Source: www.bostonherald.com”