Legislation intended to give the Millstone nuclear plant access to power markets has been broadened to increase Connecticut’s portfolio of renewable energy sources.
The measure, released Monday by the legislature’s energy and technology committee, gives the state new authority to include nuclear energy in the portfolio of other zero- or low-carbon emission sources of power.
The battle remains unchanged from before the drafting of the legislation. Power producers say the proposal gives Millstone’s owner, Dominion Resources Inc., an unfair advantage while Dominion says it levels the playing field.
However, the measure also increases by 2040 the proportion of renewable energy sources such as wind, solar, fuel cell and other low-emission power to 40 percent of a power supplier or distributor’s output. An additional 3 percent of the total output would be from hydropower or trash-to-energy.
Several nuclear plants have closed in the United States and officials in Connecticut, concerned about weak economic growth, say they want to protect Millstone, a large employer in southeast Connecticut with a significant economic impact.
Dominion, based in Virginia, has sought legislation giving it new access to electricity markets to better compete against natural gas that has soared in popularity because it is abundant, cheap and less polluting than other carbon-based fuels.
“It’s a strategy for Connecticut to move forward,” Dominion spokesman Kevin Hennessy said of the legislation. “We’re just one component.”
A group of power producers criticized the legislation as “bad for residents and bad for business.”
The group, which includes Calpine Corp., Dynegy, NRG Energy and the Electric Power Supply Association, said the legislation is a subsidy by providing Millstone with special status “when only one company can win.”
“Dominion does not need a special deal from the state,” the power producers said.
Dominion insists the legislation is not a subsidy, but gives it the ability to compete with other sources of energy. Currently, power generated by Millstone is sold in contracts to financial institutions such as hedge funds that trade it as a commodity before it is sold to retail customers.
Sen. Paul Formica, co-chairman of the energy and technology committee, said the legislation seeks to broadly boost renewable energy and “creates opportunities” for up to 30 years. Committee members “wanted to see how we bring all this together, and not just nuclear,” he said.
“We’re trying to juggle and balance the pieces in the energy puzzle,” said Formica, R-East Lyme.
Legislation intending to boost Millstone’s access to electricity markets passed the Senate last year but failed in the House.
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Power producers and consumer advocates are demanding that Dominion open its financial records to show why it needs the legislation. Dominion has said the information is irrelevant.
