October 9, 2013 Read More →

Brayton Point coal plant in Massachusetts to close in 2017

BraytonPoint sm

“The Brayton Point coal-fired plant in Bristol County, Mass., will be retired in May 2017, owner Energy Capital Partners LLC said Oct. 7, a little over a month after the private equity firm closed on the purchase of the plant from previous owner Dominion Resources Inc….

‘I would think plants looking at major environmental upgrades would look at this as a cautionary tale,’ Institute for Energy Economics and Financial Analysis Executive Director David Schlissel said Oct. 8, noting that Dominion likely sold the plant for less than the cost of the upgrades. According to a recent Form 10-Q filing from Dominion, the sale price was about $472 million, which also included the Kincaid coal-fired plant and a 50% stake in the Elwood gas-fired plant as part of the deal.

Earlier this year, Schlissel authored a study for the Conservation Law Foundation, an environmental group that has threatened to sue Brayton Point for alleged pollution violations. The study found that even under optimistic assumptions about how often the coal plant would operate for the next several years, Brayton Point would continue to be displaced by cheaper natural gas units, cutting its earnings to a sliver….”

By Matthew Bandyk, SNL Financial

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