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Milford Power Plant Deal Approved by Regulators

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.

Rocco Canonica

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