Millstone Obligated to Operate into 2022

Dominion Resources, owners of the Millstone nuclear power plant in Connecticut, has decided to resort to scare tactics in response to a story by the Connecticut Mirror that there is a lack of state legislative support for a bill that would provide the Virginia-based company with a special, ratepayer-subsidized, deal (Senate Bill 106). The legislation, as presented in public statements, would reclassify the power generated by the plant as renewable fuel, allowing Dominion to undercut the cost of other renewable fuels and receive a significantly higher price for their power, therefore raising overall rates.

The company is now saying they will reconsider keeping the plant open or make other unspecified changes if the legislature fails to pass the bill.

A Dominion spokesperson told the Hartford Courant for a story in Monday’s paper, "Regrettably, if Connecticut chooses not to act, we will begin a strategic reassessment of our plans for Millstone Power Station."

Despite the public posturing, the Millstone nuclear power plant will not close this year, next year or in the near future. According to an April story by RTO Insider, “Dominion did not inform ISO-NE by the March 24 deadline of its intent to retire the plant. Assuming Millstone clears the auction, it would be obligated to operate through May 2022, the end of the 2021/22 planning year.”

Connecticut is in a regional electric market (also known as ISO New England). Therefore, any Connecticut-only subsidy plan for Millstone would violate the wholesale price formation rules of Federal Energy Regulatory Commission (FERC), as well as the Interstate Commerce Clause of the U.S. Constitution.

In addition to introducing the suggestion of closing the plant, the Dominion spokesperson told the Hartford Courant, "It would be surprising and a missed opportunity for Connecticut not to reduce the highest electric rates in the continental United States, meet its long-term carbon goals and ensure the sustainability of a major employer this year given recent events." A quote characterized by the Hartford Courant as a reference to the loss of General Electric and impending departure of Aetna.

Regardless of where you sit on the fence with this particular bill, attempting to use Connecticut’s current economical struggles and the concern of our residents as a way to secure a special deal for a corporation is wrong and inaccurate.

The issue boils down to this: should ratepayers believe a for-profit company wants to reduce rates and decrease profits? If this is really needed, then there should be transparency requiring Dominion to open the books and demonstrate to ratepayers and regulators a loss in profits.

According to TheStreet.com in a January 24, 2017 article, “Dominion Resources has been a profitable investment for more than a quarter of a century.” A January 23, 2017 article on marketrealist.com stated, “Dominion is one of the fastest growing US utilities. It expects long-term earnings growth of ~10% for the next few years—nearly double the industry average.”

A special deal that subsidizes profits, without any financial disclosures to prove it is necessary, puts all of the risk on the Connecticut ratepayers.