The Federal Energy Regulatory Commission determined that if the contract, called a capacity supply obligation, was to stay in place, it could have “undesirable consequences” planning for the future supply and pricing of electricity.
“FERC’s decision is another nail in the coffin for the proposed Invenergy fossil fuel plant,” Jerry Elmer, senior attorney at the environmental advocacy group Conservation Law Foundation, said in a statement. “It’s clear that this plant was never needed to provide electricity to the region, and Invenergy should admit defeat and withdraw its plans.”
However, Beth Conley, spokeswoman for Invenergy, said in a statement FERC’s decision is not based on need.
She pointed to a line in the agency’s order that says “our decision to accept ISO-NE’s request and deny Invenergy’s waiver should not be construed as a determination by the Commission that the Clear River project is not needed, as that question is not before us.”
“This ruling does not impact the future of the project or Invenergy’s commitment to Rhode Island,” Conley said. “While delays have shifted our timeline, the permitting process continues, and we’re confident this important affordable energy source for Rhode Island will be built.”
ISO-New England’s contract would have provided monthly payments to Invenergy while the plant was being built, but only if the plant was operational by next year.
However, the plant won’t be built in time because of delays in the permitting process. That delay prompted ISO-NE to end its agreement with Invenergy.