Dominion Begs Proverty on Millstone: Governor Orders Study on Viability

Will the study end up having a national scope. This is in the top 3 most expensive state electricity in the nation...what about the less expensive electricity states?

Can Millstone Survive Natural Gas? Malloy Orders State Review

Stephen SingerContact Reporter

Gov. Dannel P. Malloy on Tuesday ordered a state review of whether the Millstone nuclear plant can continue operating in energy markets that increasingly rely on natural gas.

The executive order he signed directs an assessment of the Waterford plant, evaluating the “current and projected economic viability” for its continued operation.

Dominion Energy Inc., Millstone’s parent company, has broadly hinted it would close the plant without legislation it sought rewriting the state’s energy rules giving it broader access to Connecticut’s power markets.

Critics scoffed at Dominion’s threat, citing ISO-New England, the region’s power grid operator, that said the next opportunity to retire Dominion will not be until 2022.

Malloy’s order follows the failure, for the second year in a row, of the legislation Dominion sought. The Richmond, Va.-based energy company said the measure was needed to help compete with abundant and relatively cheap natural gas. Several nuclear plants nationwide have closed recently as natural gas overtakes nuclear energy as the preferred source of power.

Critics of the legislation said rewriting the law to benefit Millstone would have driven up electricity costs for residents and businesses.

Opponents also said Dominion, which refused to make its financial records public, failed to prove it needs special assistance from the state. Malloy’s order authorizes the state Department of Energy and Environmental Protection and Public Utilities Regulatory Authority to use the best available information, including audited financial statements, “and such other financial data that is reasonably requested.”

Malloy’s order directs the two agencies to review the role of nuclear generating plants and large-scale hydropower and measures used to reduce demand, promote energy storage and emissions-free renewable energy.

The agencies are directed to determine the best way to ensure continued progress toward interim and long-term carbon and other emissions targets.

The governor’s directive says a review must consider the compatibility of efforts to reach those targets with competitive wholesale and retail electricity markets and their effect on ratepayers.

Sen. Paul Formica, R-East Lyme, and co-chairman of the legislature’s Energy and Technology Committee, said a study is “is just one step forward, but we also need action.”

“It’s apparent that there is a problem in the market. Given the many nuclear facility closings around the country, it’s clear we need to act now before we become the next state where such a closure occurs,” he said.

The legislation approved by the Senate on the final day of the General Assembly June 7 authorized the state to decide whether to select one of two competitive procurement processes for nuclear power-generating facilities and in some cases, large-scale hydropower plants. The measure died in the House of Representatives.

Malloy’s order cites the lack of adequate natural gas pipeline capacity in New England, the “critical role” of emissions-free sources of electricity such as nuclear and Millstone’s importance to Connecticut’s economy.

A study commissioned in October by Dominion said Millstone generates $1.47 billion in annual economic impact and employs more than 1,000 workers. It accounts for 59 percent of the power consumed by Connecticut utility customers, Dominion said.

Three nuclear plants operate in New England: Millstone, Pilgrim in Massachusetts and Seabrook in New Hampshire. Nuclear power accounted for 30 percent of energy generated in the region in 2015, down from 34 percent the previous year, according to ISO-New England.

The agencies are directed to determine the best way to ensure continued progress toward interim and long-term carbon and other emissions targets.
The governor’s directive says a review must consider the compatibility of efforts to reach those targets with competitive wholesale and retail electricity markets and their effect on ratepayers. 

Sen. Paul Formica, R-East Lyme, and co-chairman of the legislature’s Energy and Technology Committee, said a study is “is just one step forward, but we also need action.” 

“It’s apparent that there is a problem in the market. Given the many nuclear facility closings around the country, it’s clear we need to act now before we become the next state where such a closure occurs,” he said. 

The legislation approved by the Senate on the final day of the General Assembly June 7 authorized the state to decide whether to select one of two competitive procurement processes for nuclear power-generating facilities and in some cases, large-scale hydropower plants. The measure died in the House of Representatives.
Malloy’s order cites the lack of adequate natural gas pipeline capacity in New England, the “critical role” of emissions-free sources of electricity such as nuclear and Millstone’s importance to Connecticut’s economy. 

A study commissioned in October by Dominion said Millstone generates $1.47 billion in annual economic impact and employs more than 1,000 workers. It accounts for 59 percent of the power consumed by Connecticut utility customers, Dominion said. 

Three nuclear plants operate in New England: Millstone, Pilgrim in Massachusetts and Seabrook in New Hampshire. Nuclear power accounted for 30 percent of energy generated in the region in 2015, down from 34 percent the previous year, according to ISO-New England.