State officials have tentatively selected three projects to provide peaking electric generation in Bridgeport, Devon and New Haven.
The Department of Public Utility Control expects the new natural gas plants to save customers an average of at least $30 million per year, or nearly $1 billion over their 30-year lifespan. The plants could also lead to the closing of older, less efficient plants.
DPUC spokeswoman Beryl Lyons said the state’s peaking generation system is old and inefficient. That’s why the state legislature passed legislation in 2007 for DPUC to solicit proposals.
Final Decision Due
The department received 12 proposals by Feb. 4. A final decision on its choices is set for June 25.
The three tentative selections are: A 360-megawatt plant in Bridgeport built by Bridgeport Energy II, slated to open in Dec. 2010; a 194-megawatt plant in Devon built by the GenConn partnership of United Illuminating and NRG Energy, scheduled to open in June 2010; and a 134-megawatt plant in New Haven Harbor built by PSEG that will come online in June 2012.
Before DPUC renders a final decision, the department will receive written exceptions. Lyons said the department expects the three selected companies to be pleased while the other applicants will restate their cases.
Costly Peak Demand
Currently, the state pays premiums to the Federal Energy Regulatory Commission for electricity during peak hours — usually in the summer — that state plants cannot provide. Lyons described that cost — roughly $14 per kilowatt — as “enormous.”
“The state does not have the capability to meet peak demand right now,” she said.
In a statement, Attorney General Richard Blumenthal praised the decision as a “step in the right direction” for reducing electricity costs.
“This decision advances my longstanding support for additional peaking plants in Connecticut and increased state control over the cost of electric power generation,” he said.
Blumenthal also warned that there must be a continuing review of all generation facilities — new and old — to ensure their environmental compatibility.
