Welcome!

News Feed Item

IEEFA Report: Connecticut's Last Coal-fired Power Plant Is In Critical Financial Condition, Community Needs To Plan For Transition

Report Finds Handwriting May Already Be On the Wall for 45-Year-Old Coal Plant Whose Pre-Tax Earnings "Fell off the Cliff" in 2009 and Are Unlikely to Recover to the High Pre-2009 Levels; Lower Natural Gas Prices, Lower Energy Market Prices & Other Trends Too Much to Overcome.

HARTFORD, Conn., Jan. 23, 2014 /PRNewswire-USNewswire/ -- A new financial analysis report cautions that PSEG's Bridgeport Harbor Unit 3 – the last coal-fired power plant in Connecticut and one of the few remaining such facilities in New England – has been in deep financial trouble since 2009, and is unlikely to be financially viable for the long-term.  The report from the independent and nonprofit Institute for Energy Economics and Financial Analysis (IEEFA) is intended to help policymakers and residents near Bridgeport Harbor Unit 3 understand the need to start planning now for the retirement of the coal-fired power plant.

The IEEFA report notes that Bridgeport Harbor Unit 3 has been buffeted for years by the same economic pressures -- low natural gas prices, low market prices, and flat or declining electricity demands – that have led to the retirement of more than 13,000 megawatts (MW) of the country's coal-fired power plant fleet from 2009-2012.

IEEFA released an earlier report reaching similar conclusions about the prospects for the Somerset, Massachusetts-based Brayton Point Station.  Immediately after making investments of more than $1 billion in pollution control equipment, Dominion Resources sold the 1,580 MW Brayton Point Station for the fire-sale price of an estimated $55 million, reflecting a substantial financial loss. Within a month of closing on that transaction, the new owner gave notice of its intent to retire Brayton Point in 2017.

Sandy Buchanan, executive director, IEEFA, said: "Community leaders and others would be well-advised to start planning now for the shuttering of Bridgeport Harbor 3.  The financial handwriting is already on wall for this power plant that is so old that it was launched when LBJ was President of the U.S. There is no reason to believe that Bridgeport Harbor can somehow survive the negative financial pressures that already have taken down scores of other coal-fired power plants."

David Schlissel, report author and director of resource planning analysis, IEEFA, said: "The future of the Bridgeport Harbor Unit 3 coal plant looks bleak. The bottom line here is that PSEG Power's pre-tax earnings from Bridgeport Harbor Unit 3 dropped off a cliff in 2009. Based on currently expected future circumstances, there is no credible reason to expect that these pre-tax earnings will again reach the high levels achieved in 2007 and 2008.  PSEG's after-tax profits from the plant will be even lower because it has to pay taxes, interests and depreciation from these pre-tax earnings."

Cathy Kunkel, report co-author and IEEFA research fellow, said: "Bridgeport was designed to provide baseload electric power, but due to changes in the grid, most significantly the availability of substantial amounts of low-cost power from natural gas-fired combined cycle units, Bridgeport is now being relied on for peaking service when natural gas-fired units are constrained.  Long start-up times, as much as a full day to reach full power, make it difficult for Bridgeport and other aging coal power plants to serve this peak service, back-up role."

 Highlights of the report include the following:

  • Bridgeport Harbor Unit 3's capacity factor for 2012 was only 3 percent and for the first 10 months of 2013 was only 15.9 percent. The IEEFA report states that the coal-fired power plant is unlikely to reach the 71-87 percent capacity factors achieved before the collapse of natural gas prices in 2009.
  • New England's current energy and peak load forecasts are relatively flat through 2022.  Consequently, instead of serving higher energy loads, Bridgeport Harbor Unit 3 will have to continue to compete with low cost natural gas-fired units and new renewable resources to serve existing energy demands.
  • Circumstances that are anticipated to drive continued low pre-tax earnings from Bridgeport Harbor are: low market pricing for natural gas; the addition of increased gas pipeline supply into the Northeast, starting sometime in 2016-2018; relatively high operating costs and low energy market prices in turn necessitating very little power generation from the plant except for in peak winter months; relatively flat demand for energy in the New England market; and possible federal action on climate change resulting in higher costs for greenhouse gas (GHG) emissions by the end of this decade.

ABOUT IEEFA

The Institute for Energy Economics and Financial Analysis (IEEFA) conducts research and analyses on financial and economic issues related to energy and the environment. The Institute's mission is to help facilitate the transition to a diverse, sustainable and profitable energy economy and to reduce dependence on coal and other non-renewable energy resources.  For more information, go to http://www.ieefa.org on the Web.

EDITOR'S NOTES: The IEEFA study, related PowerPoint presentations, and a streaming audio replay of this news event will be available as of 3 p.m. EST on January 23, 2014 at http://www.ieefa.org.

SOURCE Institute for Energy Economics and Financial Analysis (IEEFA), Cleveland, OH

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale. In his session at @DevOpsSummit at 20th Cloud Expo, Anand Akela, Senior...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls ...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...