January 25, 2019

CT Construction Digest Friday January 25, 2019

Killingly power plant returns to CT Siting Council
Matt Pilon
The developer of a major power plant in Killingly has returned to the Connecticut Siting Council hoping for a project approval that has thus far eluded it.
NTE Energy reapplied to the Siting Council Jan. 18, seeking a key approval called a certificate of environmental compatibility and public need for its Killingly Energy Center (KEC).
The dual-fuel (natural gas and diesel oil), combined cycle plant would be located on Lake Road in Killingly, less than two miles west of I-395.
The Siting Council rejected the then-550-megawatt project "without prejudice" in May 2017, finding that NTE hadn't demonstrated a public benefit of building the plant, partly because grid operator ISO New England had not selected the plant in its annual auction to secure generation capacity five years into the future.
NTE asked to reopen the proceeding in early 2018, but withdrew its application soon after, once it learned that ISO NE had again not selected the plant for a so-called forward capacity contract. However, NTE said last week that it has prequalified for the upcoming forward capacity auction and believes its offer price is competitive and more likely to receive a contract.
In its latest request to reopen the Siting Council proceeding, NTE said several things have changed since the 2017 rejection.
For example, NTE said the plant has received an air permit from the Department of Energy and Environmental Protection, reached an agreement with Eversource for upgrades to a gas pipeline that would serve the facility, and secured a local tax agreement with Killingly, among other steps.
NTE has also decided to switch the make and model of its proposed combustion turbine generator, which would increase the plant's output to 650 megawatts "at essentially no additional cost," according to testimony from Timothy Eves, NTE's senior vice president.
NTE has said it hopes to build the plant in time for commercial operation in 2022.
The Siting Council said it would consider NTE's motion to reopen the project's proceeding for its Feb. 14 meeting.
As proposed fossil-fuel power plants often are, the Killingly Energy Center has been controversial. Environmental groups, local residents and others have expressed concerns about increased air pollution, noise and other worries.
Connecticut's largest new power plant opened last year in Oxford. The 805-megawatt CPV Towantic plant made 2018 the biggest year in at least a decade for new generation coming online in the state.

Connecticut trade group calls for an immediate halt to natural gas expansion
Luther Turmelle
The trade group representing Connecticut’s home heating oil dealers is renewing its efforts to fight the expansion of the natural gas network in Connecticut.
Chris Herb, president of the Connecticut Energy Marketers Association, sent a letter to Gov. Ned Lamont Tuesday urging that Lamont issue an Executive Order that would bring a halt to all efforts to expand the natural gas distribution network and connecting new residential and industrial customers.
In the letter, Herb cited the explosion of a natural gas pipeline in Massachusetts last year and two additional incidents that occurred last weekend in New York and Rhode Island. A pressure buildup in the natural gas distribution of Columbia Gas caused explosions and fire that impacted 8,600 customers across three eastern Massachusetts communities.
Last year’s Massachussets disaster killed an 18-year-old and injured about two-dozen other people. It also left thousands without heat and hot water, in some cases for months
Rhode Island Gov. Gina Raimondo declared a state of emergency for the Newport area late Monday after National Grid suspended natural gas service to 7,100 customers due to a pressure problem associated with the Algonquin Pipeline, with is part of the transmission network that brings the fuel into New England.
The natural gas transmission pipeline runs through Connecticut, Massachusetts, Rhode Island, New York and New Jersey and is 1,130 miles. It is owned by Enbridge, based in Canada.
Enbridge officials were not immediately available for comment Wednesday.
Herb said Wednesday that he also heard from the Connecticut home heating oil dealers that service residential and commercial customers in New York City and surrounding community that “hundreds of service interruptions” have prompted home owners and business to switch to home heating oil. “I was trying to loop our new governor in on what has been going on,” Herb said. “This expansion was part of an initiative by the previous governor.”
Lamont’s press office did not respond to a request for comment about Herb’s letter The state Public Utilities Regulatory Authority in late 2013 gave the go-ahead for the state’s three natural gas utilities to expand 900 miles of mains to 280,000 customers over a 10-year period.

Herb insisted that he is not trying worry the public unnecessarily.
“The natural gas system is falling apart just over Connecticut’s eastern border in Rhode Island and to its western border in New York, and that is why we are calling on Governor Lamont to take action before it hits home,” he said. “It’s time for the natural gas industry to be transparent and explain what it is going to do to fix these problems.”
Eversource Energy’s natural gas division and two other utilities, Southern Connecticut Natural Gas and Connecticut Natural Gas, are three companies that distribute the fuel to Connecticut consumers.
Orange-based Avangrid is the corporate parent of SCG and CNG as well as Berkshire Gas. Spanish energy-giant Iberdrola holds a controlling interest in Avangrid.
Natural gas is one of the safest, most efficient and most reliable energy sources available. It’s also clean-burning, convenient and affordable compared with fuel oil, which is why so many Connecticut residents ask for gas when they build new homes or upgrade their heating systems.
Ed Crowder, a spokesman for Avangrid, said “ our companies have a decades-long track record serving customers safely and reliably in Connecticut.” “They know they can count on natural gas being there for them when they need it,” Crowder said. “There’s no need to worry about scheduling delivery trucks, leaky oil tanks or running out during a cold snap. We look forward to making safe, convenient and environmentally friendly natural gas available to more Connecticut homes and businesses in the years ahead.”
Tricia Modifica of Eversource said the public wants natural gas.
“Natural gas is efficient, clean and safe and this call for a moratorium is, unfortunately, more of the oil dealers association’s rhetoric aiming to scare consumers,” Modifica wrote in an email. “The state’s gas expansion program was developed to give Connecticut residents and businesses another fuel choice - which they requested and are embracing as demonstrated by the interest in conversions. While we know more natural gas capacity is needed in this region to ensure fuel security, reduce greenhouse gas emissions and improve reliability, our gas customers can rest assured we have planned for these types of weather conditions and work to ensure we have ample gas supply even during these record-breaking usage days. As for the Rhode Island incident, we are assisting National Grid in their efforts to get their customers back online and we resent this attempt by CEMA to run another campaign based on inaccuracies.”
Officials with both Avangrid were not immediately available for comment Wednesday.

Hartford presses in court for right to push forward developing Downtown North

With the future of the development around Dunkin' Donuts Park at stake, the city argued in court Thursday that it should be allowed to move forward with a new developer who wants to build hundreds of new apartments and bring new stores and shops to the neighborhood.
Last fall, the city asked the courts to order the fired developer of the baseball stadium, Centerplan Construction Co, to remove the liens it placed on the properties and release the properties to the city. Without such an order, the city cannot move forward with a new developer it has selected, RMS Cos. of Stamford.
Hartford Mayor Luke Bronin testified Thursday that the city should be allowed to pursue another developer quickly to tap into the momentum of revitalization taking root in the city. The Downtown North development -- named for its location just north of downtown -- also would provide much-needed property tax revenue and help push up overall property values in advance of a revaluation in 2021. 
“These are among the most visible, undeveloped parcels in the city,” Bronin said. “The faster we can get them developed, the more we can build a sense of progress and momentum. A key part of our development strategy is to create sufficient residential density in the downtown and the areas adjacent to the downtown that we see a different level energy and activity that we can begin attracting other amenities. People bring people.”
Bronin said the 13-acres of undeveloped land around the ballpark is one of the biggest opportunities to get closer to a goal of a strong, stable urban core.
Thursday’s hearing was the latest development in a long-running dispute with Centerplan that dates back to 2016 when Centerplan was fired from the ballpark project after it missed two key construction deadlines. Another firm finished the construction of Dunkin' Donuts Park, and it opened a year late.
Centerplan’s contract to develop the land around Dunkin' Donuts Park also was subsequently terminated by the city. In response, Centerplan placed liens on the parcels surrounding the ballpark, effectively blocking any redevelopment.
Centerplan filed a lawsuit for wrongful termination. In September, the city filed a motion for summary judgment, seeking to force a decision over who had control of the properties. The city was dealt a setback when Judge Thomas Moukawsher denied that request, reasoning that Hartford can’t terminate its ground lease with Centerplan unless the developer has been found in default.
The city turned to filing a motion for “injunctive relief” asking the courts to allow the city to move ahead with another developer, Randy Salvatore, owner of RMS.
The overall wrongful termination lawsuit is continuing and could go to trial as early as this spring. Centerplan is seeking $90 million in damages.
Bronin argued that the city would never be able to work again with Centerplan given its contentious relationship. Bronin said he is confident the city will prevail in the overall lawsuit, but it doesn’t make sense to delay development.
Bronin testified Thursday in the case. Salvatore also is expected to testify as is Jason Rudnick, who was president of Centerplan during the ballpark’s construction. The hearing will resume Tuesday.