Federal agency ruling deals Killingly power plant a serious blow this week

The Federal Energy Regulatory Commission on Monday accepted a November termination filing by ISO-NE citing the likely failure of NTE Energy to achieve certain “critical path schedule milestones,” including commercial operations of the Killingly plant, by June 1, 2024, as laid out in a 2019 capacity supply obligation tariff. NTE, developers of the planned 650-megawatt, natural gas-fired plant slated for Lake Road in the Dayville section of town, secured an obligation in ISO-NE’s 2019 forward capacity auction for the 2022-23 supply period. NTE agreed to begin producing power in June 2022, but an automatic two-year extension moved that deadline to mid-2024. ISO-NE argued its monitoring of NTE’s progress found the developer won’t hit its “critical path schedule milestones” in time to meet that extended deadline. Under a pair of 2018 Town Council-approved agreements, the town of Killingly was in line for $5 million under a community environmental benefit agreement, or CEBA, once the facility was built, along with $120 million in projected tax revenue over the course of 20 years of operation.


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