Decommissioning and Mothballing of Generating Plants
DC2023-07-0022 (July 17, 2023) prescribes the implementing guidelines for the decommissioning and mothballing of generating plants or units, pursuant to Section 2.8 of DC2010-03-0003 (the prior DOE requirement for GenCos to seek prior clearance before deactivation or mothballing) [DC2023-07-0022, §1, 2023-07-17].
Definitions
Decommissioning — the permanent retirement of a generating plant or unit from operation upon reaching its maximum economic life, where the generation of electricity is no longer technically viable, subject to DOE confirmation [DC2023-07-0022, §3.2, 2023-07-17].
Mothballing — the temporary deactivation or removal from service of a generating plant or unit, with a specified return-to-service date. The period within ERC-prescribed outage allowances is not considered mothballing [DC2023-07-0022, §3.7, 2023-07-17].
Scope
Applies to all generating plants or units intending to decommission or mothball, including embedded generating facilities, regardless of technology and mode of connection [DC2023-07-0022, §2, 2023-07-17].
Excluded: Self-generation facilities, Qualified End-users (net-metering), and Distributed Energy Resources. Nuclear power plants are excluded and covered by a separate issuance [DC2023-07-0022, §2, 2023-07-17].
Decommissioning Procedure
| Step | Requirement |
|---|---|
| LOI submission | At least 365 calendar days before target decommissioning date |
| Notice recipients | DOE; copy furnished ERC, DENR, BOI, TransCo/SO/TNP (or local DU for embedded), SGSO, WGA, MO, Off-taker |
| LOI documents | Fact sheet (Annex A), latest COC from ERC, notarized Board Resolution, proof of receipt from all agencies |
| DOE completeness check | Within 5 working days from receipt |
| DOE confirmation | Letter of Confirmation (LOC) issued within 60 calendar days of complete application |
| Timeline change | Notify DOE (copy all agencies) ≤7 calendar days before new date; DOE issues revised LOC |
[DC2023-07-0022, §§4.1–4.6, 2023-07-17]
The LOC does not preclude ERC or other agencies from exercising their own authority, nor absolve the GenCo from any pending obligations, liabilities, or penalties [DC2023-07-0022, §4.5, 2023-07-17].
Mothballing Procedure
| Step | Requirement |
|---|---|
| LOI submission | At least 180 calendar days before target mothballing date |
| Notice recipients | Same as decommissioning (DOE, ERC, DENR, BOI, TransCo/SO/TNP, SGSO, WGA, MO, Off-taker) |
| LOI documents | Fact sheet (Annex B, includes target return-to-service date), latest COC, notarized Board Resolution, proof of receipt, Mothballing Plan (with major milestones) |
| DOE completeness check | Within 5 working days |
| DOE LOC | Within 60 calendar days of complete application |
| COC and WESM consequences | Total plant mothball: Automatic COC termination + outright WESM deregistration; Partial unit mothball: GenCo applies for COC amendment and WESM registration change |
| Unapplied deviations | Credited against applicable unplanned outages |
| Ownership change during mothballing | Previous and new owners comply with ERC rules on change of ownership |
[DC2023-07-0022, §§4.7–4.14, 2023-07-17]
Stakeholder Responsibilities
GenCo (§5):
- Ensure continued service delivery before the effective date of decommissioning/mothballing
- Quarterly progress reports to DOE per Mothballing Plan
- Submit copy of LOC to MO, SGSO, and ERC within 7 calendar days of receipt
DOE (§6): Ensure GenCo compliance and monitor mothballing activities for supply security.
Market Operator / IEMOP (§7):
- Propose WESM Rule and Manual amendments for implementation
- Process WESM deregistration/documentation
- Provide status updates to DOE, ERC, SO, and WGA
- Conduct and submit market impact studies (spot price simulations) upon DOE instruction
WESM Governance Arm (§8):
- Evaluate proposed WESM Rule changes for compliance with this Circular
- Ensure GenCo adherence to WESM Rules until deregistration is decided
SO and SGSO (§9):
- Formulate/amend connection and disconnection procedures
- Facilitate and assist GenCo during decommissioning/mothballing activities
- Facilitate immediate reconnection of generating facilities returning from mothballing
NPC (§10): Must issue separate internal guidelines on decommissioning and mothballing of NPC plants within 60 calendar days of this Circular’s effectivity.
ERC (§11):
- Review, update, and harmonize existing resolutions with this Circular; promulgate COC guidelines for decommissioning/mothballing
- Enforce penalty mechanisms for non-compliance after due process
- Monitor and penalize market power abuse or anti-competitive behavior
Relationship to Energy Transition
The decommissioning framework is the regulatory complement to the voluntary CFPP retirement and repurposing concept. While CFPP retirement under the energy transition may be voluntary and incentivized (e.g., through the ETM), DC2023-07-0022 establishes the mandatory DOE prior clearance process that applies regardless of the reason for decommissioning or mothballing — including end-of-life conventional plants and coal units being retired under transition programs.
The general framework applies to all technologies (coal, gas, oil, RE, geothermal) — not only to fossil fuel plants.