Elwood Energy LLC Submits Notice of Cancellation of Reactive Service Rate Schedule

Strategic Insights -

Elwood Energy LLC has submitted a notice of cancellation to the Federal Energy Regulatory Commission (FERC) for its Reactive Service Rate Schedule, due to a proposed transaction where Elwood will transfer ownership of its Units 5-7 at the Elwood Power Station to Dairyland Power Cooperative. This filing is a result of a prior agreement with MPH Elwood, LLC, where Elwood would lease back Units 1-4 from MPH. However, with the Transaction, Elwood will sell Units 5-7 and associated facilities to Buyer. As a result, Elwood is requesting that the Commission accept the notice effective as of the consummation of the Transaction, which is expected to occur in the first quarter of 2026.

Key Takeaways:

  • Elwood Energy LLC has submitted a notice of cancellation to the Federal Energy Regulatory Commission (FERC) for its Reactive Service Rate Schedule.
  • The cancellation is due to a proposed transaction where Elwood will transfer ownership of its Units 5-7 at the Elwood Power Station to Dairyland Power Cooperative.
  • The Transaction involves the sale of Units 5-7 and associated facilities to Buyer, with the consummation expected in the first quarter of 2026.
  • Elwood has requested that the Commission accept the notice effective as of the consummation of the Transaction.
  • The Commission's eTariff filing guidance requires Elwood to make a compliance filing to reflect the actual effective date within 30 days of the consummation of the Transaction.
  • Schedule 2 of the PJM Tariff requires that at least 90 days prior to the disposition date of a generator, the Generation Owner make either a rate filing with the Commission to terminate or revise its revenue requirement or an informational filing providing specified information.
  • Elwood has submitted the Notice of Cancellation to comply with the requirements stated in Schedule 2 of the PJM Tariff.

Statistics:

  • The proposed Transaction is expected to be consummated in the first quarter of 2026.
  • The consummation of the Transaction is expected to occur at least 90 days after the submission of the filing.
  • The effective date requested by Elwood is December 31, 9998, with a compliance filing to reflect the actual effective date to be made within 30 days of the consummation of the Transaction.

Sources:

  • Federal Energy Regulatory Commission.
  • Elwood Energy LLC, Notice of Cancellation of Reactive Service Rate Schedule Pursuant to Section 205 of the Federal Power Act (the "FPA") 1 and Part 35 of the regulations of the Federal Energy Regulatory Commission (the "Commission").
  • PJM Tariff, Schedule 2.
  • Elwood Energy LLC, Section 203 Application for approval in connection with the Transaction under Section 203 of the FPA, 16 U.S.C. SS 824b (2018).
  • Elwood Energy LLC, Proposed Revisions to Reactive Service Rate Schedule and Request for Limited Tariff Waiver, Docket No. ER25-1335-000 (filed Feb. 18, 2025).
  • Elwood Energy LLC, Notice of Consummation (filed June 11, 2025).