In order to gain key consents for its $3 billion merger, New Haven utility parent UIL Holdings agreed to pay at least $30 million to remediate its former English Station power plant in New Haven.
UIL reached the deal with the state attorney general and the Department of Energy & Environmental Protection late last week, and details of the cleanup were released on Thursday. The agreement is contingent upon the Connecticut Public Utilities Regulatory Authority and the Massachusetts Department of Public Utilities approving UIL’s proposed merger with Spanish utility giant Iberdrola, which is trying to grow its U.S. operations with UIL’s executive team at the helm. PURA is expected to make a ruling Dec. 4.
The agreement calls on UIL to contribute $30 million to cleaning up the English Station, a shuttered power plant that UIL sold in 2000 but remains contaminated with carcinogens and heavy metals. If the remediation costs more than $30 million, UIL will cover the difference. If it costs less than $30 million, the state pockets the cash to use for a future public purpose.
The English Station is owned by Asnat Realty of Bayside, N.Y. and Evergreen Power of Wilmington, Md., and DEEP is working with them to gain access to the site.
UIL could seek to recover the $30 million through ratepayers during the next rate case for one of its utilities, such as United Illuminating or Connecticut Natural Gas, but DEEP and Attorney General George Jepsen said they would strongly oppose such a move.
