Dominion Energy Takes Another Key Step toward Closing Salem Harbor Station

CONTACT:
Shanna Cleveland, CLF, (617) 850-1716
Karen Wood, CLF, (617) 850-1722

BOSTON, MA  February 16, 2011 – Under pressure from public health groups, environmental organizations, political leaders and community members, Dominion Energy of Virginia has taken another important step toward closing Salem Harbor Station, its 60-year-old, coal-fired power plant in Salem, Massachusetts. Known as a “non-price retirement” request, the move represents an official request to the electric system operator, ISO New England, to allow the plant to shut down permanently.

Shanna Cleveland, staff attorney for Conservation Law Foundation (CLF), said, “Dominion’s actions put Salem Harbor Station on a path to shut down by 2014. Combined with its recent statements to shareholders that it doesn’t intend to invest any more capital in the plant, it is clear that Salem Harbor Station cannot operate profitably. The only issue remaining is whether the plant will shut down sooner than 2014. An unprofitable plant is still a polluting one, as long as it operates.”

ISO-NE now has 90 days to either accept or reject Dominion’s request to retire the plant. Depending on its decision, and the ensuing proceedings at the Federal Energy Regulatory Commission, the plant’s life may be shortened, but is unlikely to be extended beyond 2014.

Under the ISO-NE tariff, there are scenarios in which at least two units at Salem Harbor Station could be retired as soon as June 2012, and others which would allow the whole plant to shut down before 2014.

“The sooner  Dominion and ISO-NE can present a clear plan for Salem Harbor Station’s retirement, the sooner everyone else involved can begin to plan in earnest for what comes next,” continued Cleveland. “That’s when the promise of a cleaner future for Salem will become real.”

Background on Salem Harbor Station and ISO-NE

ISO-NE rejected two prior requests by Dominion to remove Salem Harbor Station from the electricity market, saying that the plant would still be needed for reliability at times of highest demand, according to its three-year plans filed in 2009 and 2010. ISO-NE’s reliability determinations are the subject of a protest that CLF filed with the Federal Energy Regulatory Commission (FERC) in October, 2010. The FERC has since directed ISO-NE to find a solution that would allow the plant to shut down, and ISO-NE is actively working with stakeholders to develop that solution.

Background on Coal-Free New England

CLF is working towards a coal-free New England by 2020. For more than 20 years, CLF has held the region’s coal-fired power plants accountable for violations of clean air and water laws, while winning tougher regulations to protect the environment and public health. CLF filed the appeals of state permits that resulted in the 2010 shutdown of Somerset Station, in Somerset, Massachusetts, and is currently in litigation with Salem Harbor Station in Salem, Massachusetts. With its tenacious legal advocacy, policy initiatives and regulatory expertise, CLF is applying pressure in all the right places to rid New England of old, dirty coal plants, keep the lights on at reasonable cost, and make way for clean renewable energy to power our region.

The Conservation Law Foundation (CLF) protects New England’s environment for the benefit of all people. Using the law, science and the market, CLF creates solutions that preserve natural resources, build healthy communities, and sustain a vibrant economy region-wide. Founded in 1966, CLF is a nonprofit, member-supported organization with offices in Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.