Milford Power Plant Deal Approved by Regulators
The Connecticut Department of Public Utility Control approved a
firm transportation agreement between Southern Connecticut Gas, CNE
Energy Services Group and Milford Power that requires Southern to
install distribution lines and transport 96,000 Dth/d of gas to the
proposed 544 MW Milford Power Plant. The electric generating
facility has a targeted in-service date of February 2001.
The gas facilities include metering and odorization equipment
and a 150-foot, 16-inch steel lateral between the Iroquois Gas
Transmission System and the delivery point, which connects the
Milford Power Plant and the distribution facilities.
The gas facilities will be financed through CNE Energy Services,
a subsidiary of Energy East and an affiliate of Southern, which
serves 162,000 customers in the state. As a result, the cost of
construction of the facilities will not be included in Southern's
rate base, and Southern's customers will not be responsible for any
cost of construction.
"The Agreement is beneficial to Southern's customers for several
reasons," said Southern President Sal A. Ardigliano. "Southern and
its customers will realize a stable revenue stream from a firm
transportation customer at virtually no risk because there will be
no capital costs incurred by Southern. In addition, the revenue
stream also will offset a portion of Southern's system-wide fixed
costs that otherwise would be borne by other firm customers."
Milford Power is a joint venture between El Paso Energy and
Power Development Co. of Boston.
©Copyright 2000 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.