Power plant upgrade slow
Pending approval of the Federal Energy Regulatory Commission, the Salem Harbor Station power plant will have a new owner. Still at issue, however, is whether
Three years after former governor Jane Swift enacted regulations requiring the plant to significantly reduce levels of nitrogen oxide and sulfur dioxide, the emissions control equipment has yet to be installed. Since then, the plant's owner, USGen New England, filed for bankruptcy and asked the FERC to allow ratepayers to front the cost of the upgrade until the plant returned to solvency.
The FERC rejected that request last summer and initiated settlement negotiations with USGen New England and several other parties -- including the city of Salem and the Conservation Law Foundation -- that have a strong interest in resolving the issue.
FERC administrative judge Isaac Benkin will preside over the next settlement conference on Dec. 16 in Boston. Benkin is trying to broker an agreement that would dictate who would pay for the $85 million emissions upgrade. If Benkin cannot mediate an agreement, the FERC could order a hearing where a FERC judge would decide who would pay for the upgrade.
"There's a basic principle in environmental justice, and that is, 'polluter pays,' " said Seth Kaplan, a senior attorney for the Conservation Law Foundation, which opposes ratepayer funding. The foundation is an intervener in the settlement negotiations, and also is representing HealthLink, Masspirg, Clean Water Action, and the Wenham Lake Watershed Association.
"The citizens of the North Shore are already subsidizing the plant by paying the pollution tax," Kaplan said. "They're paying for the health care; they're paying for the human and monetary cost of the plant, and they shouldn't have to additionally pay the dollar cost to clean it up."
David Botkins, a spokesman for Dominion, declined to comment on his company's position regarding the proposed upgrade. In a Nov. 23 press release issued by the company, Dominion said it "expects capital expenditures will average $70 million to $95 million a year, with most of that budgeted for environmental controls. In 2005 and 2006 the expenditures are expected to total approximately $230 million."
Salem Mayor Stanley Usovicz Jr., who supported the plan to have ratepayers lend USGen New England money for the upgrade, said he was relieved after hearing the news of the sale.
"We can begin to build a foundation to deal with future issues now, and in that sense we can clearly breathe a sigh of relief," he said.
The coal and oil burning power plant is the city's biggest taxpayer, paying $4.5 million a year. It also is one of its largest employers, with more than 170 employees.
Built 53 years ago, the 750-megawatt plant provides enough electricity to 750,000 Massachusetts and New Hampshire homes every year.
"We're hoping that it brings some stability, finally, to the employees," said Ricky Robey, who has worked as an electrician at the plant for 15 years.
Robey is also the president of the International Brotherhood of Electrical Workers, Local 326, which represents 119 of the plant's workers.
"We think they have some deep pockets and financially we should be all set," Robey said. "We feel comfortable that the place is going to run for a long time. We don't think that they're spending that kind of money just to shut it down."
Steven Rosenberg can be reached at rosenberg@globe.com.
