by JJMDiMunno
Sorry, I don't have a link for this article, just the following text sent to me...this is bad news folks:
May 1, 2004
Conectiv plans to close B.L. England
By MICHAEL MILLER Staff Writer, (609) 463-6712, E-Mail
UPPER TOWNSHIP - Conectiv Power Delivery, having failed to find a buyer for its B.L. England power plant, plans to close it in three years.
The Wilmington, Del.-based company told its 130 employees the news Friday, spokeswoman Betty Kennedy said.
Under the proposal filed Friday with the New Jersey Board of Public Utilities, Conectiv would close the plant on the Great Egg Harbor Bay by the end of 2007. Kennedy said the 40-year-old plant needs pollution upgrades to one of its two coal-fired boilers that would be too costly to justify.
"These boilers have been upgraded every year. But every year it becomes more difficult to meet stringent air regulations," she said.
In 1995, the plant installed an $80 million scrubber on one of its two coal-fired boilers to curb sulfur emissions. But the plant is still one of the top-10 biggest polluters in New Jersey.
The company faces the prospect of adding another scrubber to its other coal-fired boiler. The plant has a third boiler that burns oil for fuel. These upgrades likely would cost far more than $80 million.
Conectiv plans to improve its transmission system instead, Kennedy said.
The plant's closure could have a huge impact on Upper Township taxpayers. The township gets more than $6 million per year in state tax relief for hosting the coal plant. As a result, its 12,000 residents pay no municipal property taxes.
"Are we concerned? Absolutely. Are we panicking? No," Mayor Richard Palombo said.
Kennedy said under a 1999 law, the rebates called Energy Receipts Taxes are no longer tied directly to the operation of the power plant. Lawmakers would have to decide whether to end Upper Township's rebates, she said.
"The good news is it's not closing tomorrow," Palombo said. "We need to do our homework."
The plant produces 447 megawatts of electricity, enough to power all of Cape May County on the hottest day of the year. Conectiv will be working with state regulators to ensure the power grid can meet the needs of Cape May, Cumberland and Atlantic counties without the plant, Kennedy said.
Conectiv planned to get out of the energy-producing business in 2002 by selling B.L. England and three other plants to NRG Energy for $178 million. Of the total price, the company was asking $68.5 million for B.L. England.
But NRG withdrew its offer in the wake of the Enron scandal and the resulting energy-market collapse. Kennedy said Conectiv put the plant back on the auction block but got no takers.
"Would we sell it if there was an offer? It would be considered," she said.
The company plans to keep most or all of its 130 employees, Kennedy said.
"This recommendation is no reflection on these workers. These are highly skilled and technical workers," she said.
The BPU must agree to the plant's closure, but Kennedy said that is a formality.
"We believe this plan will be approved. Let's be honest," she said.
To e-mail Michael Miller at The Press:
[email protected]
May 1, 2004
Conectiv plans to close B.L. England
By MICHAEL MILLER Staff Writer, (609) 463-6712, E-Mail
UPPER TOWNSHIP - Conectiv Power Delivery, having failed to find a buyer for its B.L. England power plant, plans to close it in three years.
The Wilmington, Del.-based company told its 130 employees the news Friday, spokeswoman Betty Kennedy said.
Under the proposal filed Friday with the New Jersey Board of Public Utilities, Conectiv would close the plant on the Great Egg Harbor Bay by the end of 2007. Kennedy said the 40-year-old plant needs pollution upgrades to one of its two coal-fired boilers that would be too costly to justify.
"These boilers have been upgraded every year. But every year it becomes more difficult to meet stringent air regulations," she said.
In 1995, the plant installed an $80 million scrubber on one of its two coal-fired boilers to curb sulfur emissions. But the plant is still one of the top-10 biggest polluters in New Jersey.
The company faces the prospect of adding another scrubber to its other coal-fired boiler. The plant has a third boiler that burns oil for fuel. These upgrades likely would cost far more than $80 million.
Conectiv plans to improve its transmission system instead, Kennedy said.
The plant's closure could have a huge impact on Upper Township taxpayers. The township gets more than $6 million per year in state tax relief for hosting the coal plant. As a result, its 12,000 residents pay no municipal property taxes.
"Are we concerned? Absolutely. Are we panicking? No," Mayor Richard Palombo said.
Kennedy said under a 1999 law, the rebates called Energy Receipts Taxes are no longer tied directly to the operation of the power plant. Lawmakers would have to decide whether to end Upper Township's rebates, she said.
"The good news is it's not closing tomorrow," Palombo said. "We need to do our homework."
The plant produces 447 megawatts of electricity, enough to power all of Cape May County on the hottest day of the year. Conectiv will be working with state regulators to ensure the power grid can meet the needs of Cape May, Cumberland and Atlantic counties without the plant, Kennedy said.
Conectiv planned to get out of the energy-producing business in 2002 by selling B.L. England and three other plants to NRG Energy for $178 million. Of the total price, the company was asking $68.5 million for B.L. England.
But NRG withdrew its offer in the wake of the Enron scandal and the resulting energy-market collapse. Kennedy said Conectiv put the plant back on the auction block but got no takers.
"Would we sell it if there was an offer? It would be considered," she said.
The company plans to keep most or all of its 130 employees, Kennedy said.
"This recommendation is no reflection on these workers. These are highly skilled and technical workers," she said.
The BPU must agree to the plant's closure, but Kennedy said that is a formality.
"We believe this plan will be approved. Let's be honest," she said.
To e-mail Michael Miller at The Press:
[email protected]
~Mike DiMunno
CSAO Beesley Point Secondary - MP 8.69 (Magnolia, NJ)
Moderator: Pennsylvania-Reading Seashore Lines :: Penn Central
CSAO Beesley Point Secondary - MP 8.69 (Magnolia, NJ)
Moderator: Pennsylvania-Reading Seashore Lines :: Penn Central