Commissioner James Danly Statement
July 28, 2022
Docket No. CP95-35-002
I concur with this order[1] and write separately to state two points.
First, I agree with the Commission’s decision to establish a technical conference to discuss EcoEléctrica, L.P.’s (EcoEléctrica) ongoing structural analysis and modeling. As noted in my earlier separate statement,[2] the Governor of Puerto Rico and the Puerto Rico Electric Power Authority raised serious reliability concerns in this docket.[3] As of June 1, 2022, the hurricane season has begun and yet we still have no resolution regarding the level at which EcoEléctrica can safely operate its liquefied natural gas (LNG) storage tank and the potential consequences to the reliability of Puerto Rico’s electric system should problems arise.[4] The technical conference of course comes too late for the current hurricane season but I am nonetheless hopeful that it will assist with the timely “resolution of the issues presented in the Briefing Order and Order on Initial Brief.”[5] I also welcome supplemental filings in this docket regarding reliability and think such filings may be informative in light of the fact that Puerto Rico has entered its hurricane season.
Second, I write separately to express my continued misgivings regarding the Commission’s claim of ongoing authority to oversee the safety of LNG facilities.[6]
For these reasons, I respectfully concur.
[1] EcoEléctrica, L.P., 180 FERC ¶ 61,054 (2022).
[2] See EcoEléctrica, L.P., 179 FERC ¶ 61,038 (2022) (Danly, Comm’r, concurring) (Order on Initial Brief).
[3] See Governor of Puerto Rico February 24, 2022 Letter at 2 (“Returning the EcoEléctrica LNG storage tank to full operation is critical to [the Puerto Rico Electric Power Authority’s] ability to reliably supply economic electric power to the people of Puerto Rico and to minimize risks of blackouts on the island.”); Puerto Rico Electric Power Authority February 24, 2022 Letter at 2 (“EcoEléctrica and Costa Sur units are also essential for maintaining the required operational reserve, which is key for the reliability and safety of Puerto Rico’s electrical system. A reduction in the available capacity of these units would adversely affect the reliability and safety of the electrical service.”).
[4] See EcoEléctrica, L.P., 177 FERC ¶ 61,164, at P 9 (2021) (stating the importance of “hav[ing] this information before the next hurricane season, which officially begins June 1, in order to determine at what liquid level EcoEléctrica can safely operate its LNG storage tank and to determine what reliability impacts to Puerto Rico’s electric grid could result from whatever liquid storage level we ultimately authorize”).
[5] EcoEléctrica, L.P., 180 FERC ¶ 61,054 at P 17; see Order on Initial Brief, 179 FERC ¶ 61,038; EcoEléctrica, L.P., 176 FERC ¶ 61,192 (2021) (Briefing Order).
[6] See Order on Initial Brief, 179 FERC ¶ 61,038 (Danly, Comm’r, concurring); EcoEléctrica, L.P., 177 FERC ¶ 61,164 (Danly, Comm’r, concurring); Briefing Order, 176 FERC ¶ 61,192 (Danly, Comm’r, concurring).