FOR IMMEDIATE RELEASE
DATE: October 8, 2021
CONTACT: Dave Meisinger, firstname.lastname@example.org, (860) 889-4088
RE: CMEEC Agrees to Sell Natural Gas-Fired Power Plant to Hull Street Energy
NORWICH –The Connecticut Municipal Electric Energy Cooperative (“CMEEC”) announces the signing of a definitive Asset Purchase Agreement with Hull Street Energy for the sale of the 84 MW dual-fueled Alfred L. Pierce Peaking Generating Station (“Pierce”) located in Wallingford, CT. The sale is expected to close by the end of 2021, subject to usual and customary closing conditions.
Pierce was commissioned in 2007 after CMEEC repowered a then dormant 55-year old plant with a new turbine. The CMEEC turbine was erected within the old power plant building, a landmark the Town of Wallingford wanted preserved, and was designed to meet state and local environmental criteria. The Town continues to own the building and property hosting the Pierce plant.
Dave Meisinger, CMEEC’s Chief Executive Officer, stated that Pierce has been a valuable asset for CMEEC and its municipal electric utility members:
Pierce has been a good and timely investment, providing us a strong hedge against volatile capacity prices while also contributing to the reliable operation of the ISO-NE regional electric grid. As a qualified “quick start” peaking resource, Pierce can operate on short notice when the grid is experiencing electric power shortages. Operation is infrequent, but when called upon it is critical to mitigate the potential for outages. Our members benefitted from the market structure for the dispatch of this type of asset, and our ability to assure its reliable operation, for well over a decade.
Mr. Meisinger said that the decision to sell the peaking plant reflects CMEEC’s desire to provide wholesale rate stability to its members and will allow CMEEC to realign its assets to better focus on adding clean energy resources to its portfolio. He further noted that under its new ownership, Pierce will continue to contribute to grid and local reliability, concluding that:
CMEEC has been an excellent steward of this plant, and Pierce has been a financial success for us to date. We are pleased to hand the keys over to Hull Street Energy, whose portfolio focus in New England is to support regional grid reliability as new variable renewable energy resources are integrated to meet regional climate goals.
About Connecticut Municipal Electric Energy Cooperative
Established as a joint action agency in 1976 by state statute, the Connecticut Municipal Electric Energy Cooperative is responsible for the financing, construction and acquisition of electric generation resources and the implementation of a wholesale power supply portfolio on behalf of its municipal electric utility members, which include Bozrah Light & Power, Jewett City Department of Public Utilities, Groton Utilities, Norwich Public Utilities, South Norwalk Electric and Water, and The Third Taxing District of Norwalk Electric Division. CMEEC also supplies the wholesale power requirements of the Mohegan Tribal Utility Authority. For further information about CMEEC, please see https://cmeec.com/