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    Friday, April 26, 2024

    Reintroduce nuclear power market bill in 2017

    It may be just as well that a proposed change in the rules governing how the state regulates the wholesale electricity market did not reach a final vote in the state House of Representatives after gaining unanimous approval in the Senate.

    The intent of the legislation was to preserve the economic viability of Millstone Power Station in Waterford. Its two working reactors meet about half of Connecticut’s electricity needs and do so without emitting greenhouse gases.

    Abundant natural gas, in large part the result of fracking technology, has driven down the price points in the daily auctions that set the wholesale price of electricity. Those low wholesale prices have cut into the profits of the nuclear industry, with operating and maintenance costs surpassing revenues, leading to the closing of several nuclear plants.

    Dominion, operator of the Millstone plant, proposed legislation to provide greater stability by allowing it to sell up to half the electricity it produces through long-term contracts. In this new market it would compete with climate-friendly renewables such as hydro-electric, wind turbines and solar farms, as well as with plants that burn trash to generate electricity.

    But introduced late in the session, the legislation was rushed. The legislature never subjected the proposal to a public hearing, but instead the Energy and Technology Committee listened to an information hearing, which provided a chance for the nuclear industry to makes its case. This raised skepticism among consumer groups and proponents of renewable energy technologies.

    It is of benefit to the environment and to the local economy for Millstone to continue operating. While there is no suggestion of an imminent closing, over the long term Millstone could reach the point where it is no longer able to compete under existing market conditions.

    Reintroducing the legislation in 2017 will allow for a normal committee and public hearing process and for amendments. Nuclear power’s ability to compete should not come at the expense of renewable energy sources or of consumers. A normal legislative process will provide the opportunity to make the case the legislation treats all parties fairly and to tweak the language if necessary.

    Comment threads are monitored for 48 hours after publication and then closed.