April 7, 2008

Hedlund, Bradley call for end of wasteful operation of Cape power plant

Move could save Southeastern Mass. ratepayers $108 million annually

BOSTON, MA – Sen. Robert Hedlund (R-Weymouth) and Rep. Garrett Bradley (D-Hingham) have joined with several of their legislative colleagues from the Southeastern corner of the Commonwealth in calling for a waiver that would end the wasteful operation of the Mirant Canal Power Plant.

The oil-burning power plant, located on the banks of the Cape Cod Canal, is among the state’s most inefficient and costly to operate. Yet it is required by the National Electric Reliability Council (NERC) to stay operational and partly running year round to protect against the loss of two major transmission lines within a 30 minute period.

Although NERC regulations give power providers the option of developing a load-shedding program in the case of such a failure, NStar has chosen to keep the outdated plant up and running at a cost to ratepayers of $8 million monthly. This wasteful spending has helped lead to some of the highest electricity rates in the nation.

“This plant is a poster child for inefficient, greenhouse gas spewing energy production,” said Sen. Hedlund. “Allowing this plant to operate only during peak-demand season would benefit ratepayers and the environment.”

The letter, which is being sent to state Department of Public Utilities Commissioner Timothy Wolf, asks Wolf to work with the ISO-New England, the group in charge of the region’s power grid, in developing a load-shedding program that will allow the plant to close during off-peak months. The letter is also being signed by 17 other legislators from Southeastern Massachusetts.

"I urge Commissioner Wolf to work towards a resolution to the extreme waste of the Mirant Canal Power Plant," said Rep. Bradley "these are tough financial times for us all, and curbing wanton state spending is a priority of mine and my colleagues."

Closing the plant would have no impact on the region’s power grid, which operates at a surplus for most of the year. The plant is so costly to run that were it not for NERC regulations, it would likely only be operational during peak-demand months.

Hedlund said the money ratepayers are being forced to pay annually would be better spent building a new high-efficiency, natural-gas powered plant.

# # #