Orsted Partner to Sell Wind Farms, Take $1.6 Billion Charge
Will Wade, Mark Chediak and William Mathis
(Bloomberg) -- Eversource Energy is in advanced talks to
unload its share in three offshore wind projects that it planned to build with
Orsted A/S, and will take a fourth-quarter charge of as much as $1.6 billion.
The US firm is in exclusive negotiations to sell its 50%
stakes in the developments to a “global private infrastructure investor,” it
said Monday in a statement. The move follows writedowns by Orsted across its
American portfolio in 2023, which helped send the company’s shares to the
lowest level in years.
The fledgling US offshore wind industry has been hammered by
soaring inflation and supply-chain snarls that have driven up costs for
developers. A number are canceling contracts and walking away from planned
projects, posing a threat to President Joe Biden’s ambitious offshore-wind
target of 30 gigawatts by 2030.
Eversource owns stakes in two joint ventures with Orsted
that are developing the South Fork, Revolution and Sunrise sites east of Long
Island, New York. The US firm expects an after-tax impairment charge of $800
million to $900 million on all of them. It will take an additional charge of as
much as $700 million for Sunrise after local regulators rejected a request for
higher rates for the project.
“This impairment is an unfortunate reflection of the current
market conditions we are facing,” Chief Executive Officer Joe Nolan said in the
statement. Eversource shares slipped as much as 6.7% Tuesday.
The company reduced the carrying value of the projects after
estimated construction costs rose, as did uncertainties tied to the rate
request ruling.
Orsted slipped as much as 1.9% in Copenhagen Tuesday. Since
the Danish company had already marked down the value of these assets on its
books last year, it won’t take a significant hit from the move by Eversource,
Citigroup Inc. analyst Jenny Ping wrote in a note.
“We see limited direct impact to Orsted shares from the ES
announcement, other than perhaps sentiment,” she said.
CT businessman awarded minor league soccer team; launch depends on new waterfront Bridgeport stadium
BRIDGEPORT — A Connecticut businessman has been awarded a
minor league soccer team, which he hopes will compete in a new waterfront
stadium in Bridgeport, he announced Tuesday.
The team, whose launch is contingent on funding for
the stadium, will be known as Connecticut United Football Club and will
participate in MLS Next Pro, a lower-division league associated with Major
League Soccer.
The man behind the effort, multimillionaire tech
entrepreneur André Swanston, says the new team is part of his continued
push to bring an MLS and/or National Women's Soccer League team to
Bridgeport.
"We have fans that I think are some of the best fans in
the country, that I think are hungry to show that Connecticut fans are as good
as fans anywhere and that we can support a team," said Swanston, who
attended the University of Connecticut and now lives in Ridgefield.
Swanston recently gained
approval from Bridgeport's planning and zoning commission to build a
stadium on a parcel of land along the Pequonnock River, currently home to
the vacant
Shoreline Star Greyhound Park. He says the proposed stadium would initially
have between 7,500 and 10,000 seats, with the option of expanding in the future
if the city lands an MLS or NWSL team.
Eventually, the development could also include a park, a
hotel and hundreds of residential units adjacent to the stadium.
The top remaining issue, Swanston said, is funding. Swanston
said he has invested millions of his own dollars into the project and has
received commitments from private investors, but that the stadium will be
difficult to complete without some level of state support.
"There absolutely needs to be some component of this
that the state steps up to be able to help," Swanston said.
Swanston said he'd like to complete the stadium in time for
the 2025 season, a goal he called "ambitious but possible."
In statements released Tuesday, both Bridgeport Mayor
Joe Ganim and Gov. Ned Lamont touted the newly announced MLS Next Pro team,
though neither commented on the possibility of public money for a
stadium.
"Bringing an MLS Next Pro expansion team to the state
of Connecticut is a tremendous opportunity to ignite the spirit of our
communities, foster local talent, and showcase our state on the national
stage," Lamont said in his statement. "This exciting endeavor
will invigorate our economy, inspire our youth, and unite our diverse
soccer-loving population."
A Lamont spokesperson said Tuesday the state had not
committed any money for the project, but that "there are several avenues
developers can pursue to apply for state funding."
In October, Swanston went public with his efforts to bring
the highest levels of professional soccer to Connecticut, which he considers an
under-served market for the sport despite several MLS teams already within
driving distance.
At a news conference Tuesday to announce the new MLS Next
Pro team, Swanston listed off reasons why Bridgeport can "thrive" as
a soccer market, including the size of the sport's fan base in Connecticut, the
concentration of large corporations in the area and buy-in from city and state
officials.
Draped in a scarf reading "CT United 2025,"
Swanston unveiled renderings of a first phase of development including a
small stadium, a river walk and a green space, followed by a second phase,
which would feature a larger stadium and a hotel.
"We believe we can build infrastructure, both literally
in terms of the stadium and figuratively in terms of a youth academy and media
engagement, where we will be the most attractive market in the country for any
league, whether that's MLS, NWSL or others," he said.
In an interview with CT Insider, Swanston said while
the new stadium isn't a sure thing, he is confident enough in the possibility
to have spent large sums on the effort, including a seven-figure expansion fee
to MLS Next Pro.
"I'm sure enough that I have literally now invested
millions of dollars," he said. "So nothing is guaranteed, but I think
what people can have solace in is that somebody actually is putting their money
where their mouth is and risking something to try to make it happen, and they
believe enough in it that they're willing to do that."
Swanston was joined Tuesday by Bridgeport city officials
including Ganim, as well as executives from MLS Next Pro, which
launched in 2022 and currently has 27 teams, mostly owned by MLS franchises.
"To all of you here in Bridgeport and across the great
state of Connecticut, the best is yet to come," said Charles Altchek,
president of MLS Next Pro. "I'm proud to make this official: Connecticut
United Football Club, welcome to MLS Next Pro."
Aidee Nieves, president of Bridgeport's city council, said
she appreciated Swanston's willingness to engage with the local community,
including through a free youth academy associated with the new team.
Nieves said she'd emphasized to Swanston her preference that
the project promotes economic growth, but also "maintains
affordability" and "is inclusive to all those that live here in our
community."
Swanston, 42, grew up in the Bronx and attended several
private schools, including The Hotchkiss School in Lakeville, before enrolling
at UConn, where he ran track. Later, he founded a data marketplace
platform that he eventually sold for a reported
price of more than $100 million.
With the launch of CT United FC, Swanston will become
one of the youngest principal team owners in American sports, as well as one of
few Black team owners.
Meriden Markham Airport seeks to build 5 more hangars in Wallingford
Mary Ellen Godin
Meriden Markham Municipal Airport is seeking to build
five new aircraft hangars on the Wallingford side of the Meriden-based
airport.
The new hangars were part of a special permit granted in
2005, but only two hangars were built in the town and the remaining three were
in Meriden. That permit has since expired causing the need to repeat the
process, said airport manager Constance Castillo.
"This bank of hangars was on the original permit but we
didn't build it, Castillo said.
Wallingford's Planning and Zoning Commission is scheduled to
review the airport's special permit request Wednesday, pending administrative
approval from the Inland Wetlands and Watercourses Commission. The airport, on
Evansville Road, covers 109.5 acres of land in Wallingford, according to
town records.
A mutual agreement between Meriden and Wallingford states
that no more than 60 hangar spots or tie-downs will be constructed without
Wallingford's approval.
"My concern is the overall impervious surface
area," Wallingford Environmental & Natural Resources Planner Erin
O'Hare said Monday.
The hangars will be paid for through a $671,000 Federal
Aviation Administration grant and are aimed at meeting pilot
demand, Castillo said.
Meriden Markham currently has 30 pilots on a waiting
list for hangar space and some "will drive an hour away" to park
their planes in a sheltered hangar. New England winter weather, wind, even sun
can damage aircraft, Castillo said. Electricity will be the only
utility.
The new hangars are part of an airport revitalization effort
in recent years that included a $1.4 million grant from the Federal Aviation
Administration's Airport improvement program to repave the southern section of
its taxiway. Other upgrades included the construction of new steel hangars in
Meriden, the installation of new lights, and a modernized fuel pump. When
awarding the runway grant, U.S. Sen. Richard Blumenthal, D-Connecticut, told
officials in August the airport was particularly valuable because of its
central location in the state and continued growth as an investment in the
state's economy.
"Airports are one of the essential links that create
connections for businesses. They foster and support economic
development," Blumenthal said. "These kinds of regional airports are
the lifeblood of air transportation in the U.S. We need more options for
aircraft."
With the ongoing pilot shortage, in both the military and
the commercial sector, officials also recognized the importance of the Meriden
redevelopment for providing a space where students can come to educate
themselves about aircraft and get their pilot licenses.
The Experimental Aircraft Association has rented one of the
hangars on the property, and last year over 20 local students helped construct
the group's own aircraft, which has since flown across the country. Officials
in both towns have touted the airport as an amenity for prospective businesses
that have been understated.
Last fall, eVertiports met with airport and city officials
to discuss providing potential charter services using electric, vertical
takeoff aircraft. eVertiports hopes to install a compact landing pad that would
open the facility up to chartering taxi flights to the surrounding region.
Company representatives met with several small airports
statewide and plans are very preliminary, Castillo said.
The new hangars will not yield any additional flights or
operational changes, she added.
The town of Wallingford has notified about 30 adjacent
neighbors to Wednesday's public hearing.
"We approved at least one hangar several years ago,
said Planning and Zoning Commission Chairman James Seichter. "I'm not
certain how many have been built. This is a new application for the five
hangars. It's a public hearing. The applicant has an opportunity to make its
presentation and the public has an opportunity to present any concerns."
Town Economic Development Commission Chairman Joseph Mirra
worked with leaders in other towns on the Tweed New Haven airport expansion and
said any growth at Meriden-Markham was positive for business.
"For the business community and the small aircraft they
have there, the new hangars are a good thing," Mirra said.
DOL independent contractor final rule announced, will take effect March 11
The U.S. Department of Labor announced Tuesday a final rule
revising its interpretation of the Fair Labor Standards Act’s classification
provision to determine whether a worker may be considered an independent
contractor.
The final rule largely tracks the
agency’s October 2022 proposed rule. It retains the multifactor,
“totality-of-the-circumstances” framework for analyzing independent
contractors’ status included in that proposal.
Under this framework, DOL will consider six nonexhaustive
factors when examining the relationship between a worker and a potential
employer:
Worker’s opportunity for profit or loss.
Investments made by the worker and the employer.
Degree of permanence of the work relationship.
Nature and degree of control over performance of the work.
Extent to which the work performed is an integral part of
the employer’s business.
Use of the worker’s skill and initiative.
The rule will be published in the Federal Register on
Wednesday, Jan. 10, and is slated to take effect March 11, officials said.
In a press call Monday, Acting Secretary of Labor Julie Su
said the final rule would ensure a level playing field for workers,
particularly vulnerable workers who are misclassified and lose out on minimum
wage, overtime pay and other protections under the FLSA.
“These labor protections are a floor under which no one
should be forced to live and work,” Su said. “In my role, I have traveled and
talked to workers across the country who are working full time, year-round and
still struggle to make ends meet because of misclassification. They sometimes
work side by side with individuals who are properly classified, doing the same
work.”
Separately, DOL is rescinding the Trump administration’s
2021 independent contractor final rule, which had been enacted during that
administration’s final weeks. The Biden administration attempted
to withdraw the rule in May 2021, but a federal
court put it back into effect, holding that the act of rescinding the 2021
rule violated the Administrative Procedure Act.
Asked by reporters how the agency planned to defend against
likely legal challenges to the latest independent contractor rule, Solicitor of
Labor Seema Nanda pointed to DOL’s outreach efforts, which included both the
proposed rule’s notice-and-comment period as well as a series of listening
sessions. Officials said Monday they received more than 55,000 public comments.
“In the prior challenge to the recission that we put out in the beginning of the administration, [the court’s] problems with our rule were largely procedural in nature, and the court actually suggested that the department could have replaced the prior administration’s 2021 [independent contractor] rule with an economic reality test,” Nanda said. “We feel very confident in this rule. We have very carefully considered the case law under the [FLSA] in developing the rule and are certainly prepared to defend the rule if there are any challenges.”
The final rule makes some changes from DOL’s 2022 proposal,
said Jessica Looman, administrator of DOL’s Wage and Hour Division. For
example, it clarifies that actions taken by a potential employer for the sole
purpose of complying with applicable federal, state, tribal or local laws or
regulations do not constitute control indicative of an employment relationship.
The rule also advises that costs to a worker which are unilaterally imposed by
a potential employer are not investments indicative of independent contractor
status.
Looman further stated that the final rule does not adopt an
“ABC” test, a framework that jurisdictions
including California have adopted in order to determine independent
contractor status.
“This rule provides broad guidance across many industries
and is not focused on one sector of the economy or one type of worker,” Looman
said. “It provides fact-based analysis that does need to be applied in each
circumstance to determine whether a worker is an employee or independent
contractor in business for themselves.”