When, Not If: Bridgeport's Future and the Closing of PSEG's Coal Plant
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Key Findings
The factors that have adversely affected PSEG’s revenues and earnings from Bridgeport Harbor Unit 3 in recent years are consistent with broader trends impacting coal plants in deregulated markets.
Nationally, the price of coal delivered to the electric power sector increased 7.5% per year from 2002-2011 and is projected to continue to rise.
The first, and most significant, changed circumstance that has affected the financial viability of Bridgeport Harbor Unit 3 has been a reduction in generation caused by the collapse of natural gas prices that started in late 2008/early 2009.
Executive Summary
Bridgeport Harbor Unit 3 is a 387.5 megawatt (“MW”) coal-fired facility, with some potential to burn residual fuel oil as a secondary fuel. It is currently 45 years old, having started commercial operations in 1968.
Bridgeport Harbor Unit 3 is owned by PSEG Power Connecticut (“PSEG” or “PSEG Power”), a merchant subsidiary of the Public Service Enterprise Group. PSEG also owns the 146 MW oilfired Bridgeport Harbor Unit 2 and the 454 MW oil-fired New Haven Harbor power plants. In addition, PSEG owns combustion turbines at the Bridgeport Harbor and New Haven Harbor sites.
Bridgeport Harbor Unit 3 is the last coal-fired electric generating unit operating in Connecticut and one of the last few coal-fired units operating in New England.
Like other aging coal-fired and oil-fired generating units in New England, Bridgeport Harbor Unit 3 was originally designed and operated to provide baseload electric power. However, 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 Harbor Unit 3 and the region’s other aging coal and oil-fired units are now being relied on for peaking service, ramping, or reserves when the natural gas-fired units are constrained or unavailable. Unfortunately, long start-up times, perhaps as long as 24 hours to reach full power production, make it “challenging to rely on older plants for backup generation” (according to the regional electric grid operator, ISO New England).
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Press release: Report- When, Not If: Bridgeport’s Future and the Closing of PSEG’s Coal Plant
