NRG on Power Plant Complaints: 'We’ve Met All Obligations’

NRG Energy first provided a letter of intent abandoning the project at Meriden Turbine on Cathole Mountain in April 2012, a company spokesperson said, and has no obligation to remove buildings or perform specific actions such as planting trees.

The city’s concerns were brought to light during a public hearing with the Connecticut Siting Council this week and City Manager Lawrence Kendzior said the company provided little notice before abandoning the project this year and should remain responsible for “promised tasks” including planting at least 90 trees to block the view of buildings.

For more on the city’s concerns, click the link provided.

David Gaier, director of communications for NRG East Region and NRG Thermal, said Friday that the company maintains private ownership of the property, however, and has no obligation to conduct further work as the property “is not, never has been, and will not be a power plant.”

“At this point, potential buyers have expressed interest in the buildings so it’s in no one’s interest to take them down,” Gaier said, “and it’s curious that that no one complained about the buildings for all the years that we’ve been paying extraordinarily high taxes–more, by the way, than we pay at many working power plants. Only now that NRG has abandoned the project, do people suddenly find the buildings a problem.”

Here is the complete response from Gaier and NRG as provided to Meriden Patch:

"NRG has met all its obligations. The site is private property; it’s not, never has been, and will not be a power plant, and it’s therefore not under the jurisdiction of the Connecticut Siting Council (CSC).  I’m sure every property owner in Meriden agrees that the sanctity of private property rights is something we all cherish.

Irrespective of the jurisdiction issue, which will be decided in court, the governing agreement on this property is a tax agreement between the City of Meriden and NRG, because the Certificate of Public Convenience and Necessity (CPCN) was withdrawn. That is another reason that the CSC doesn’t have jurisdiction. Per the governing tax agreement, there is no obligation to take down buildings on the property, or perform any specific action—such as planting trees.

There are no specific “promised” tasks whatsoever. The agreement requires only that both parties work to agree on “reasonable and commercially feasible options” for the property other than a power plant. We’ve attempted to do that and are still hopeful we can reach agreement with the City on what’s reasonable and commercially feasible.

Regarding notice, a letter was hand-delivered to Mr. Kendzior on April 3, 2012 stating formally that NRG was abandoning the project. So we think that any suggestion that the city and Mr. Kendzior haven’t known until very recently that NRG had abandoned the project is just not credible. The CSC was also notified at the time, and did not impose any conditions for withdrawal, other than to provide a letter.

In addition, the Connecticut Comprehensive Energy Plan released in early 2012 stated that there was no need for new generation before 2022 so this came as no surprise to anyone. It’s true that in 2011 NRG had expressed hope that project might be built, but we were very clear in 2012 that that the project was being formally abandoned. 

At this point, potential buyers have expressed interest in the buildings so it’s in no one’s interest to take them down. And it’s curious that that no one complained about the buildings for all the years that we’ve been paying extraordinarily high taxes–more, by the way, than we pay at many working power plants. Only now that NRG has abandoned the project do people suddenly find the buildings a problem.

Frankly, we’re bewildered as to why City officials continue to discuss 2011 and earlier. NRG made a necessary, intelligent commercial decision that was in the best interest of our shareholders. Every business owner would do the same.  We think the right thing to do is to move on and resolve the issue. We want to do that."

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