PRESS RELEASE FROM YAHOO FINANCE
"The United Illuminating Company (UI), a subsidiary of UIL Holdings Corporation (NYSE: UIL), and NRG Energy, Inc. (NYSE:NRG) today were awarded a contract to build new peaking generation with a nominal capacity of 200 megawatts (MW) at NRG's existing Devon plant in Milford, CT. The new plant will have a summer-rated capacity of 194 MW, assuming natural gas fuel.
The peaking plant will be owned by GenConn Energy LLC, a 50-50 partnership between UI and NRG. The new Devon peaking plant, which will provide power to all Connecticut residents during peak usage periods, is scheduled to be in operation by June 1, 2010.
The DPUC today made its formal decision to select GenConn as one of three projects chosen to help address the state's growing need for more power generation during the heaviest load periods. The award reflects a guaranteed contract quantity of 188 MW of new peaking generation at Devon."
Something further to add to this press release is that there is another power plant less than 1/4 of a mile from the/this UI/ENRG site, a site that a UI spokesman said they are not connected with. UI has won its latest victory in the last month when its Monk parakeet cruelty lawsuit, filed by Animal rights activists, was dismissed. This victory followed their approval of a multi billion dollar grid upgrade that is yet to save us taxpayers who built it any money. UI's largest victory thus far is its back to back rate increase approvals, the latest one increasing our bills another 3%, see today's CT Post article.
UI spokesman said that this is a peak energy plant that can be cold started in about 30 minutes saving consumers money during peak energy periods. The gas powered turbines will be powered by a gas line going to the Devon plant. The actual savings however are in question, a recent CT Post article cited these savings to a mere $3.00 per consumer. This savings (in lieu of the UI's CEO Mr. Torgenson comments) may be overstated as he is heard often complaining to his share holders that local conservation efforts, combined with delinquencies, have dramatically reduced local demand for electric impacting their profits.
UI has responded to these concerns by pleading to the DPUC for profit increases under decoupling bills. UI has raised its prices already apx. 100% in the last eight years and has time and again proven that they are deceptive in their trade practices. It is my opinion that this Devon power plant will offer no significant relief to Milford's ratepayers. What this plant will do is offer significant profit to UI's soured investors who are cheering the project on wall street. UI was forced out of the generation business in 1999 due to a public outcry over mercury and poor air quality concerns.
Photo above is an artist rendering of the modified Devon Power Plant site. One point of interest in this photo is that all the homes near this power plant have been excluded by the artist, perhaps to limit the perception of the terrible impact it will have on the surrounding neighborhood.
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