Would Significantly Impact Millstone

HARTFORD – House Republicans at the Legislature, much under the leadership of State Rep. Kathleen McCarty (R-Waterford), have fought endlessly for days to get Senate Bill 344, a bill that would largely affect the Millstone Power Station of Waterford, called; but the majority party has refused to call it for a vote.

This legislation, An Act Requiring a Study of the Adequacy of Energy Supplies in the State, would help to keep Millstone up and running in this difficult economy that has forced the doors of many companies to close. It was introduced by the Energy and Technology Committee, and passed by the Senate on April 29.

“Millstone is a big job creator and energy producer in our region. It employs over 1,100 workers and generates enough electricity from its two operational units to power approximately 500,000 homes; that’s approximately 50% of Connecticut’s energy needs,” said Rep. McCarty, co-sponsor of the bill. “One of the major benefits of this legislation is that it has the potential to lower electric rates for consumers. I very much hope to get the opportunity to advocate for this bill on the House floor. Until then, I will continue encouraging my colleagues to support this crucial initiative for Southeastern Connecticut as we wait to see it come forward in the remaining thirteen or so hours of session.”

Without the use of state subsidies, the bill would allow the Department of Energy and Environmental Protection (DEEP) commissioner, in consultation with other state officials like the Attorney General and the Office of Consumer Counsel, to issue a solicitation for certain types of power-generating facilities. They will also be able to specifically issue a request for a proposal on zero-carbon generation within the ISO New England market. Millstone’s electric output is 98% of the carbon-free power in Connecticut.

Other benefits of this bill include:

• The maximum amount of nuclear generation allowed would be about half of Millstone’s energy output
• If a bid is accepted by DEEP, they would enter into a contract with utility companies to purchase a specific amount of electricity output for up to 10 years
• The bid prices can only be accepted if they meet or are lower than the forecasted price of electricity over the term of the contract
• Allows other zero emission generation, trash to energy plants and nuclear facilities to bid into the proposal, creating competition to put downward pressure on bid prices
• Requires the Public Utilities Regulatory Authority (PURA) to approve contracts to ensure that they are in the best interest of ratepayers

These provisions are important considering the context in which the bill is being brought up. Over the past 10 years, the wholesale market for electricity has seen a dramatic shift with the prevalence of cheap natural gas. Low-priced natural gas has led to an increase in its production, which in turn has nuclear generation in a tenuous position. There have been numerous nuclear plant closings across the country and the closure of Millstone Power Station would have devastating effects on New England’s energy prices and supply.