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by Bruce Mohl, CommonWealth Beacon
September 13, 2024
GOVS. MAURA HEALEY of Massachusetts and Ned Lamont of Connecticut are considering a major energy deal, with Healey signaling that she might agree to purchase power from the Millstone nuclear power plant in Connecticut if in return Connecticut buys a chunk of the output of the proposed Vineyard Wind 2 wind farm off the coast of Martha’s Vineyard.
The proposed swap was first reported by the Hartford Courant, but details of the arrangement being discussed were confirmed by CommonWealth Beacon.
What set the discussions in motion was a lengthy offshore wind procurement conducted jointly by Massachusetts, Connecticut, and Rhode Island that ended last week with only Massachusetts and Rhode Island making procurements. Connecticut took a pass, leaving the fate of Vineyard Wind 2 unclear – Massachusetts agreed to purchase 800 megawatts of the Vineyard Wind 2 project but the remaining 400 megawatts were unclaimed.
Why Connecticut didn’t purchase the remaining 400 megawatts was unclear, but it appears likely the price of the power was too high for Lamont and Democrats in the Connecticut legislature at a time when electricity ratepayers in Connecticut have seen their bills skyrocket, largely because of charges associated with Millstone.
Millstone is one of two remaining nuclear power plants in New England and a key source of carbon-free electricity. In 2019, Connecticut lawmakers, worried that Millstone might close, jeopardizing close to 1,000 jobs, directed the state’s two major utilities to enter into a 10-year power purchase contract for half the power plant’s output. The utilities agreed to pay a steady rate of $50 a megawatt hour, but the cost to ratepayers varied depending on wholesale prices.
When the wholesale price of electricity exceeded the Millstone price, Millstone had to kick the difference back to ratepayers, which happened when the war in Ukraine sent the price of natural gas, the primary fuel for electricity generation, skyrocketing. More recently, wholesale prices have fallen below $50, and ratepayers have had to pick up the difference.
Connecticut wanted other states to buy in to the Millstone deal to make sure the plant kept operating, but none did.
In a close-out spending bill Healey filed this week, she included several provisions that redefine clean energy under Massachusetts law and allow the Department of Energy Resources to enter into long-term contracts for clean energy and/or “associated environmental attributes.” The new clean energy definition included “nuclear power generation that is located in the ISO-NE control area and commenced commercial operation before January 1, 2011.”
Millstone, based in Waterford, Connecticut, opened in 1970. Seabrook Station, located in Seabrook, New Hampshire, opened in 1990.
The Hartford Court quoted a Lamont spokesman as saying the governor “believes that Millstone is a regional asset and is grateful that Governor Healey included the procurement language in a recent legislative proposal. As was discussed at the meeting [of New England governors and eastern Canada premiers] on Tuesday, making our grid more reliable, green, and affordable is a multi-state effort.”
Asked when he would make a decision on rejoining the latest offshore auction, Lamont told the Courant: “We’ll see.” Asked whether it would be before the November election, he said, “I’m cautious on this, as you know, so not for a while.”
A spokesperson for Healey's executive officer of energy and environmental affairs had no immediate comment on a possible Millstone deal, but she did say "offshore wind is key to unlocking jobs and economic development in our region. We believe in the Vineyard Wind 2 project. Selecting projects now will ensure New England stays in the lead as the industry takes off nationwide. Massachusetts appreciates Connecticut's partnership and we look forward to other entities joining in this procurement. We will continue to seek out opportunities to partner with other states for our collective benefit."
Rep. Jeffrey Roy of Franklin, the House’s lead lawmaker on energy issues, visited Millstone in 2022 and has advocated for Massachusetts procuring some of the plant’s power. He said he was pleased to see Healey include the language in her close-out spending bill, which also included a handful of siting and permitting provisions cribbed from House and Senate climate bills.
Sen. Michael Barrett of Lexington, the Senate’s point person on energy, was disappointed earlier this week when Healey slipped a handful of climate measures into her close-out spending bill and left out a number of Senate priorities.
Asked about Massachusetts negotiating a Millstone deal, Barrett called it “a major new wedge into Massachusetts climate policy.” He added: "This stuff hasn't been explained, particularly the upside and the downside for Massachusetts. This is kind of coming out of nowhere. The Senate is going to take a very close look at what the governor is proposing.”
This article first appeared on CommonWealth Beacon and is republished here under a Creative Commons license.
