Proposed Energy Project Denied Rehearing

A proposal by Colorado-based Eco Green Generation (EGG), together with Alaska Environmental Power of Delta Junction, to build a 100-megawatt (MW) primarily propane-fired energy project in Interior Alaska has been denied a rehearing before the Federal Energy Regulatory Commission (FERC).

On January 23, 2020, FERC issued an order confirming its initial findings on EGG’s proposed project and denied EGG’s request for rehearing and waiver of FERC regulations and standards.

In June of 2019, FERC found that EGG’s proposed project, consisting of 20 separate 5-MW reciprocating engines that are duel fueled from 3% renewable diesel and 97% propane, as well as a 37.8 MW wind farm, did not meet the legal requirements to be a Qualifying Facility (QF). EGG then petitioned FERC for a rehearing and waiver, emphasizing the alleged benefits of its proposed project. Ultimately, FERC was not persuaded by EGG’s arguments.

“In addition to being legally deficient, EGG’s proposed project would also have a negative impact on our environment,” said Cory Borgeson, President and Chief Executive Officer of GVEA. “EGG promoted its idea as a hybrid power project with wind and cogeneration components, but at times over 85% of its energy output would have come from fossil fuels. GVEA remains open to projects from independent power producers that have no negative impact on reliability, the environment or rates.”

To view FERC’s order denying a rehearing, click here.

Links to previous GVEA posts on this topic: