Deal reached by Dominion Energy to keep Millstone nuclear power plant open

• 5 years ago (2019-03-18)
• David Flin

North America 1021 Nuclear 659

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Dominion Energy has announced that it has reached an agreement with utilities in Connecticut, USA, to keep the 2088 MW Millstone nuclear power station in service for at least another ten years. Millstone has two reactors, and is Connecticut’s only nuclear power station.

Millstone produces around half of Connecticut’s electricity, and it accounts for around 98 per cent of the state’s carbon-free power. Its continued operation is seen as being crucial to allow the state to meet its CO2 emission reduction goals.

Paul Koonce, President and CEO of Dominion’s Power Generation Group, said in a statement: “This is a huge win for Connecticut, the region, and our colleagues at Millstone. Not only does this preserve the vast majority of Connecticut’s carbon-free electricity, it preserves good jobs for the 1500 women and men who work at Millstone and keep 4000 other residents employed.”

Dominion has long said that the Millstone plant is no longer economic to operate. This is partly a result of power prices in New England having fallen in recent years due to an increase in gas-fired and renewable generation.

Dominion has negotiated an agreement with state officials and two local officials over ways to keep Millstone in service. Dominion said that the agreement it reached would support its move towards a more regulated and long-term contracted earnings profile, along with reducing its business risk. The company said that the contract represents a “modest financial uplift”, which results in expected operating earnings per share levels that are within its existing guidance for 2019 and beyond.