FERC Issues Show Cause Order To New England Generator
FERC directed Footprint Power LLC and Footprint Power Salem Harbor Operations LLC (collectively, Footprint) to, "show cause why they should not be found to have violated the Transmission, Markets and Services Tariff (Tariff) of ISO-New England, Inc. (ISO-NE), Market Rule 1, §§ III.1.7.20(b) and (f), III.1.10.1A(d), and III.22.214.171.124.2," by submitting what the Office of Enforcement (Enforcement or staff) has alleged were, "false and misleading supply offers for Footprint’s capacity resource -- Unit 4 of Footprint’s multi-unit Salem Harbor Power Plant in Salem, Massachusetts (Salem Harbor)," and by allegedly, "failing to report the fuel status and related operational status of the capacity resource to ISO-NE in June and July of 2013."
FERC also directed Footprint to, "show cause why it should not be found to have violated 18 C.F.R. §§ 35.41(a) and (b) (2017)," by submitting what Enforcement has alleged were, "false and misleading supply offers in violation of a Commission-approved Tariff," and by allegedly, "submitting false or misleading information and/or omitting material information regarding the Salem Harbor plant and Unit 4 in its communications with ISO-NE."
FERC further directed Footprint to show cause why it should not disgorge $2,049,571 in Capacity Supply Obligation (CSO) payments for the portion of June and July of 2013 when Footprint was paid for capacity that staff found Unit 4 could not provide, and to show cause why it should not be assessed a civil penalty in the amount of $4,200,000
The issuance of the show cause order does not indicate that FERC adopts or endorses the factual assertions or legal theories set forth in an Enforcement Staff Report.
FERC said in its order to show cause that, "The Enforcement Staff Report alleges that from June 26 through July 25, 2013, Footprint submitted false and misleading supply offers for Salem Harbor Unit 4. Specifically, staff concluded that, during that time, in violation of Market Rule 1, §§ III.1.7.20(b) and (f), III.1.10.1A(d), and III.126.96.36.199.2, and 18 C.F.R. § 35.41(a), Footprint submitted supply offers that Unit 4 could not satisfy because Salem Harbor lacked usable fuel, and failed to report to ISO-NE that Salem Harbor’s lack of usable fuel reduced Unit 4’s output capabilities and availability as a capacity resource."