GenCon panel defends SCR catalyst reserve as regulators press for updated exhibits

GenCon Energy witnesses told the Public Utilities Regulatory Authority (PURA) hearing that the company27s regulatory liability for selective catalytic reduction (SCR) and CO/VOC catalyst replacement is based on vendor estimates escalated to recent years and an accrual tied to how often the units run. Jacob Hurwitz, senior director of revenue requirements for GenCon, said the company used contractor proposals from 2016 and 2019 escalated by 2.25% per year to produce per-site replacement estimates of about $2.007 million for Devon and $2.052 million for Middletown (total roughly $4.06 million), then explained the accounting and operational assumptions that produced the roughly $3.9 million projected reserve balance for 2025.

Why it matters: The reserve reduces GenCon27s rate base and thus affects rates. Staff and intervenors pressed the company on whether the accrual assumptions match how often the units actually run, how the company would treat an overaccrual or a situation in which replacement is not required during the contract term, and what concrete test data support a near-term replacement need.

What the company said: Hurwitz and Patel (senior vice…