Clear River plant hearings expected to be put on hold

State Facility Siting Board expected to vote on issue today

BURRILLVILLE — The state Facility Siting Board is expected to vote today to halt the final series of public hearings on Chicago developer Invenergy’s proposed $1 billion fracked gas and diesel oil-burning power plant in Pascoag pending a decision by the Federal Energy Regulatory Commission, which has been asked by Independent System Operator New England (ISO-NE) to approve its request to terminate the plant’s capacity supply obligation contract.

The formal request to pause the hearings was made by Invenergy legal counsel Nicole M. Verdi, who says attorneys representing both the Town of Burrillville and the Conservation Law Foundation have all agreed to the stipulation.

“All attorneys for the additional parties have been notified and none have objected,” she said.

The parties are requesting that the siting board reserve the dates of Nov. 5 and and Nov. 27 for status conferences.

The Siting Board is expected to approve the request at its meeting today at 10 a.m. in Warwick.

ISO-NE, the operator of the regional power grid, filed its applications with the Federal Regulatory Commission on Sept. 20. The commission has 60 days to render a decision, which means final hearings on Invenergy’s applications aren’t likely to resume until November at the earliest.

ISO-NE wants to cancel the plant’s capacity supply obligation, or CSO – which Invenergy won at auction for half of the Clear River plant’s generating capacity – because it does not believe the plant can be completed in time to deliver the power it has promised. The Clear River plant has been delayed by hearings and the developer’s search for an adequate water source.

The original commercial operation date for the project was June 2019, and ISO-NE

granted Clear River Unit 1 a CSO in early 2016, for the June 1, 2019 to May 31, 2020 Capacity Commitment Period. Since then, with the plant delayed, Invenergy has covered the Clear River capacity auction for the 2019-2020 and 2020-2021 commitment periods.

Because Invenergy covered the CSO for two periods, and because of the delays in project development, ISO-NE says it now has authority, with FERC approval, to cancel the capacity obligation.

Opponents of the power plant say this could sound the death knell for the project.

Burrillville Town Manager Michael C. Wood called ISONE’s decision to terminate its contract with Invenergy “an unprecedented decision.”

“Much has changed over the three years since Invenergy made its initial application. Most notably there is no need for Invenergy’s new gas fired power plant,” he said. “Renewables such as solar, wind and hydro are coming on line faster than expected – and in fact – a surplus in capacity has been projected.”

“No doubt this is a big setback for Invenergy,” he added. “Burrillville will thoroughly evaluate this action by ISONE, but we are not underestimating Invenergy. Even with the delays and without putting a shovel in the ground to build the plant, the company has managed to make a gross profit of $26 million dollars, so it’s very possible they are still working with the ratepayers money.”

In his response to ISONE’s decision to terminate its contract with Invenergy, Conservation Land Trust senior attorney Jerry Elmer said, “This filing is proof positive of what CLF has argued from day one: Invenergy’s plant is simply not needed. It’s time for Invenergy to admit defeat and withdraw its permit application.”

Invenergy, however, disagrees and in a statement said it would continue with the project with or without the capacity deal with the ISO. In its statement, Invenergy say it will build the Clear River Energy Center as an independent supplier of electricity to the competitive wholesale market, rather than under the longterm capacity supply agreement requiring delivery by 2021 as previously planned.