Plans to construct a new power plant in Killingly were dealt a serious blow this week after a federal agency upheld a request to end an energy supply agreement between the developers of the project and ISO-New England.
The Federal Energy Regulatory Commission on Monday accepted a November termination filing by ISO-NE citing the likely failure of NTE Energy to achieve certain “critical path schedule milestones,” including commercial operations of the Killingly plant, by June 1, 2024, as laid out in a 2019 capacity supply obligation tariff.
NTE, developers of the planned 650-megawatt, natural gas-fired plant slated for Lake Road in the Dayville section of town, secured an obligation in ISO-NE’s 2019 forward capacity auction for the 2022-23 supply period.
That means it agreed to produce a certain amount of power at a specific cost that would be funneled into the larger New England power grid.
But ISO-NE, which operates the New England bulk energy power system and administers its wholesale electricity market, contends NTE has not met the financial or operational benchmarks that would enable the plant to produce the promised power within the contracted timeframe..