Local Activists from Salem Alliance for the Environment (SAFE) and HealthLink are hosting a Forum this Sunday that will expose the true costs of burning coal at plants like Salem Harbor Station.  The heat is on Dominion Energy to shut down Salem Harbor Station to allow the City of Salem and Massachusetts to usher in a clean energy economy that will provide sustainable and equitable jobs without jeopardizing public health or the environment.  Anyone who is interested in moving us towards a Coal Free Massachusetts should attend this event to find out more about the toll coal fired power plants take on communities from mining through burning and finally the disposal of ash.

For more information on how you can get involved check out the SAFE and HealthLink websites  CLF’s take action webpage.

(Photo credit: David Moisan)

There has been a significant development in the long running saga of the Salem Harbor power plant, one of the major targets of CLF’s Coal Free New England campaign. On October 5, Dominion Energy, the plant’s owner, quietly filed what is known as a Permanent Delist Bid with ISO New England (ISO-NE), the operator of the New England electricity system and markets. The filing commits Dominion to permanently withdraw Salem Harbor Station from the forward capacity market, the key market where power plants, and other resources like energy efficiency, are paid to be present, available and ready to meet the electricity needs of the region.

What does this mean?

By filing to permanently withdraw Salem Harbor Station from the forward capacity market, Dominion is signaling that it does not believe the market will be able to provide sufficient revenue to run the plant profitably and that it cannot maintain the plant going forward.

According to Paul Peterson, senior associate at Synapse Energy Economics, Inc., “The delist process was created specifically to allow power plants to withdraw from the forward capacity market, either temporarily or permanently, depending on their economics. A power plant that enters a permanent delist bid – an irrevocable decision that it will no longer try to earn revenue from that key market – is laying the groundwork to shut down.”

Although there are alternative scenarios that could allow Dominion to re-enter the market at a future date, the barriers to re-entry are extremely high and the process for doing so is complex.

Excessive ratepayer burden

Dominion’s move puts additional pressure on ISO-NE to implement a plan by June 2014 that does not rely on Salem Harbor Station to keep the lights on – ever. On October 14, CLF filed a protest with the Federal Energy Regulatory Commission citing ISO-NE’s failure to develop such a plan following the 2009 and 2010 auctions, keeping Salem Harbor Station available for “contingency” needs at enormous cost to area ratepayers. In our protest, CLF pointed to insufficient planning and loopholes in the ISO-NE process that have allowed Dominion to receive more than $30 million dollars in above market payments just to continue to exist, even while Dominion’s own filings indicated its intentions to leave the market. The company filed “static delist bids” for the past two years, a temporary exit measure that allows a company to receive above market payments if it is deemed necessary for reliability. Dominion’s ability to repeatedly game the system has forced ratepayers to bear the cost of maintaining an obsolete and polluting coal plant well beyond its useful life.

Buckling under pressure?

Salem Harbor Station is under increasing economic and environmental pressure. In June 2010, CLF filed a federal lawsuit against Dominion for repeatedly exceeding smokestack emissions limits at Salem Harbor in violation of the federal Clean Air Act. The suit would hold Dominion responsible for paying millions of dollars in penalties retroactively. Meanwhile, new EPA regulations on the near horizon will mean tougher pollution controls and multi-million dollar investments needed to comply with them. The permanent delist bid is a clear indication that Dominion doesn’t believe it can continue to wring dollars out of ratepayers for its obsolete plant for much longer, and we are making sure they won’t. Stay tuned.

Big announcement yesterday:

In an ongoing effort to protect the environment and the public from the hazards of dirty coal-fired power plants, Conservation Law Foundation (CLF) today filed a federal suit against Dominion Energy of New England for repeatedly exceeding smokestack emissions limits at its Salem Harbor Station facility in Salem, Massachusetts.  The suit holds Dominion Energy accountable for willful and ongoing violations of the federal Clean Air Act’s “opacity” requirements. The Clean Air Act sets limits on opacity – a measure of the density of smokestack emissions – to minimize the amount of soot that is released into the air.  Soot, which contains harmful chemicals, metals and ash, has been linked to severe health and environmental problems.

The suit would hold Dominion responsible for paying millions of dollars in penalties retroactively for violations of the smokestack emissions limits. The violations – 317 in a five year period – are documented in Dominion’s own quarterly reports of mandatory monitoring at the Salem Harbor Station power plant.

“Abiding by the Clean Air Act is not optional,” said Shanna Cleveland, CLF staff attorney. “According to its own reports, Salem Harbor Station is in continual violation of what the law has deemed necessary to safeguard public health. This casual disregard for the law and the people impacted by Dominion’s negligence must not go on unchecked.”

Recent studies have shown that even short-term exposure to soot has been linked to higher rates of hospitalization for heart and respiratory problems. Children and the elderly are the most vulnerable, experiencing health problems ranging from decreased lung function to premature death.

Martha Dansdill, executive director of the public health advocacy group HealthLink and a co-plaintiff in the suit, said, “Salem Harbor Station must not be allowed to continue to pollute with impunity. It is clear that Dominion is not operating in the best interest of the people who live nearby and must breathe in air dirtied by this particulate-laden, toxic plume. Dominion cannot continue its lax management at Salem Harbor Station which risks our health.”

For two decades, CLF, along with residents of Salem and neighboring communities, has fought to force Dominion, and before them the prior owners of the plant, to clean up or shut down Salem Harbor Station. The plant has a long history of violations related to its coal-burning operations, repeatedly exceeding legal limits on the discharge of known pollutants including, over time, mercury, coal ash and now, soot.

The Conservation Law Foundation (www.clf.org) works to solve the most significant environmental challenges facing New England.  CLF’s advocates use law, economics and science to create innovative strategies to conserve natural resources, protect public health and promote vital communities in our region.  Founded, in 1966, CLF is a nonprofit, member-supported organization with offices in Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

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NOTE: Photos of Salem Harbor Station’s plume are available at: http://www.flickr.com/photos/conservationlawfoundation/sets/72157623295027376/

The press is picking up the story – including the Boston Globe, the Boston Business Journal and the Salem News.