Natural gas-fired combined-cycle power plant ordered for Maryland

Source: Maryland Public Service Commission 

The Maryland Public Service Commission has determined that there is a need for new power generation in the state. In Order No. 84815, the Commission directs Baltimore Gas and Electric Company, Potomac Electric Power Company and Delmarva Power & Light Company (collectively, the Companies) to enter into a Contract for Differences with CPV Maryland, LLC (CPV), to construct a 661 Megawatt (MW) natural gas-fired combined-cycle generation plant in Waldorf in Charles County, Maryland.

Case No. 9214 was initiated by the Commission on September 29, 2009, by Order No. 82936, “to investigate whether [the Commission] should exercise its authority to order electric utilities to enter into long-term contracts to anchor new generation or to construct, acquire, or lease, and operate, new electric generating facilities in Maryland.”

Statutes under the Public Utilities Article require the Commission to foresee and meet “long-term, anticipated demand in the State for standard offer service [SOS] and other electricity supply.” The Commission determined that such long-term demand exists, which will require new generation in the amount of 650 to 700 MW by 2015, and on September 29, 2011, directed the Companies to issue a Request for Proposal, which was amended and re-issued on December 8, 2011.

Boston Pacific, the Commission’s consultants in this proceeding, analyzed the bids and found that three bidders met the minimum threshold requirements set forth in the RFP. CPV submitted the winning bid, which was determined to be the best proposal, offering the lowest cost, with a projected average ratepayer credit of $0.49/month for residential SOS ratepayers over the 20-year life of the contract.

The Order directs the utilities’ contracts with CPV to be in amounts proportionate to their relative SOS load at the date of execution. The Commission has set the commercial operation date for June 1, 2015.

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