2.7.17: Millstone is Looking for Deeper Pockets, Not “Bigger Markets”

For Immediate Release: February 7, 2017

 

Millstone is Looking for Deeper Pockets, Not “Bigger Markets”

Leading Efficient Power Producers Join Organizations Who Want Transparency from Dominion Before Any Subsidy is Considered

Hartford, CT -- A group of power producers who operate some of the most efficient power plants in New England announced today opposition to the costly and unnecessary payout of the Millstone Nuclear Power Plant, which is operated by Dominion Resources, Inc.

The groups opposing this effort include Calpine Corporation, Dynegy, NRG Energy, and the Electric Power Supply Association (EPSA), which represents independent competitive power producers in New England and across the country. They join a growing number of organizations raising concerns about giving a handout to a company that hasn’t shown any financial need.

“All power plants provide valuable services to the region, but subsidizing one simply puts the others at risk,” said group spokesman Matt Fossen. "Furthermore, Dominion has made no effort to disclose its finances. They simply want residents and policymakers to take their word for it when they cry poverty, and that’s unacceptable.”

The group challenged Dominion’s recent claim in the Hartford Courant that it simply “wants an opportunity to compete,” calling the plan an unnecessary payout that will raise electricity bills for hard-working Connecticut businesses and residents while it distorts power markets and will in fact insulate Dominion from competition.

"Tipping the scales for one company that is doing quite well in the current market is just wrong," said Fossen. "The Connecticut consumer will be better served if we're all on a level playing field."

To date, Millstone has not disclosed any financial analysis to either the public or lawmakers that shows the plant is losing money. Dominion’s own financial reports show that Millstone will continue to be profitable through at least 2020.

While specifics of the proposed payout have yet to be disclosed, a subsidy modeled on other states could cost Connecticut businesses and residents hundreds of millions every year. Also of concern is that the legislation could effectively re-regulate the state’s competitive energy market, damaging the regional wholesale markets which ensure the efficient, reliable operation of the electric grid.

The group’s opposition comes on the heels of AARP Connecticut’s statewide survey that showed that a whopping 87 percent of registered voters want Dominion to prove the Millstone Nuclear Plant is losing money before getting any subsidies.

"We look forward to a lively debate on this issue, and urge lawmakers not to approve any subsidy unless Millstone can prove it is in financial distress,” continued Fossen.

###