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Conectiv Plans To Close B.L. England

Business Brokerage Conectiv Power Delivery, having failed to find a buyer for its B.L. England power plant, plans to close it in three years. The Wilmington, Del.-based company told its 130 employees the news Friday, spokeswoman Betty Kennedy said.

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Forex Broker Under the proposal filed Friday with the New Jersey Board of Public Utilities, Conectiv would close the plant on the Great Egg Harbor Bay by the end of 2007. Kennedy said the 40-year-old plant needs pollution upgrades to one of its two coal-fired boilers that would be too costly to justify.

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Online Brokerage "These boilers have been upgraded every year. But every year it becomes more difficult to meet stringent air regulations," she said.

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Real Estate Broker In 1995, the plant installed an $80 million scrubber on one of its two coal-fired boilers to curb sulfur emissions. But the plant is still one of the top-10 biggest polluters in New Jersey.

Up for sale are the company's Deepwater plant, which went online just five years ago along the river in Pennsville, Salem County, and its B.L. England plant in Upper Township, Cape May County. Conectiv also argues the Bordentown plant is sorely needed because power companies haven' growing demand for electricity in New Jersey and the region. During a prolonged heat wave in summer 2001, the regional power grid, known as the PJM Interconnection, came very close to implementing rolling blackouts similar to those in California earlier that year. Demand for electricity came precariously close to surpassing supply.

Agency Brokerage Spark The company faces the prospect of adding another scrubber to its other coal-fired boiler. The plant has a third boiler that burns oil for fuel. These upgrades likely would cost far more than $80 million.

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Business Broker Conectiv plans to improve its transmission system instead, Kennedy said.

Brokerage Account The plant's closure could have a huge impact on Upper Township taxpayers. The township gets more than $6 million per year in state tax relief for hosting the coal plant. As a result, its 12,000 residents pay no municipal property taxes.

Stock Broker "Are we concerned? Absolutely. Are we panicking? No," Mayor Richard Palombo said.

Brokerage Online Stock Trading Kennedy said under a 1999 law, the rebates called Energy Receipts Taxes are no longer tied directly to the operation of the power plant. Lawmakers would have to decide whether to end Upper Township's rebates, she said.

Broker Justin Ticket "The good news is it's not closing tomorrow," Palombo said. "We need to do our homework."

Real Estate Brokerage The plant produces 447 megawatts of electricity, enough to power all of Cape May County on the hottest day of the year. Conectiv will be working with state regulators to ensure the power grid can meet the needs of Cape May, Cumberland and Atlantic counties without the plant, Kennedy said.

Commodity Broker Conectiv planned to get out of the energy-producing business in 2002 by selling B.L. England and three other plants to NRG Energy for $178 million. Of the total price, the company was asking $68.5 million for B.L. England.

Brokerage House But NRG withdrew its offer in the wake of the Enron scandal and the resulting energy-market collapse. Kennedy said Conectiv put the plant back on the auction block but got no takers.

Real Estate Broker Exam "Would we sell it if there was an offer? It would be considered," she said.

Brokerage Services The company plans to keep most or all of its 130 employees, Kennedy said.

Broker Live Ticket "This recommendation is no reflection on these workers. These are highly skilled and technical workers," she said.

Online Brokerage Firm The BPU must agree to the plant's closure, but Kennedy said that is a formality.

Security Broker Dealer "We believe this plan will be approved. Let's be honest," she said.

Coldwell Banker Residential By Michael Miller
The Press of Atlantic City - 5/1/2004

Topic: Energy

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