Power Company Sale Renews Concerns

Over Newtown Lakes Management

By Kendra Bobowick

Concerns are momentarily at bay but heavily guarded regarding the lakes incorporated in Northeast Utilities’ (NU) recent sale of “competitive assets,” or power companies associated with lakes Lillinonah and Zoar. Assets include Northeast Generation Services Company (NGS), affiliated locally with the Shepaug and Stevenson dam power plants.

A new owner, Energy Capital Partners, will soon assume the 40-year licensing agreement that currently binds NGS to federal standards. Before the property changes hands, some lake proponents hope to have the licensing agreement amended before the sale goes through — which could take place by the end of this year. The Federal Energy Regulatory Commission (FERC) issues the license.

“There are some loose ends,” at least as far as Lake Lillinonah Authority Chairman and Southbury resident Bryan Piepho feels.

Aware of concerns about a new owner stepping in is NU Vice President of Corporate Communications Mary Jo Keating, who has explained that regardless of ownership, the FERC license is the guideline for operations. She and other spokespeople for NGS have explained in recent interviews that although the licensing allows for a several-foot rise in water levels, the company has no intention of increasing the lake at this time.

Mr Piepho is uneasy with these reassurances, he said.

“It’s a 40-year license and [currently] there is nothing to stop utility companies [from raising the lake] except them saying they won’t; our concern is getting this fixed,” he said. “We want it so that can’t happen.”

Mr Piepho said, “I want ultimately to close the loopholes.”

Otherwise, he imagines a worst-case scenario involving water levels raised to help the power plants generate more power and income.

In past weeks Attorney General Richard Blumenthal has lent his support to residents contesting aspects of the license, specifically the Shoreline Management Plan, which stipulates terms for lake levels, fees, and more.

According to Mr Piepho, Mr Blumenthal, Newtown State Representative Julia Wasserman, and representatives from local senators’ offices are aware of residents’ concern, and have met for discussion.

Lake Lillinonah Authority member Michael Mathison of Newtown explained that he has reserved his reaction in recent days following the sale. He does, however, see some improvements coming from the Shoreline Management Plans begun by NGS.

“Now they’re taking a proactive approach to cleaning up debris,” he said. “No matter who owns it, it’s better than before,” Mr Mathison said.

He is referring specifically to a debris cleanup effort that had been conducted by a large machine along Lake Lillinonah, which is now afloat on Lake Zoar, he said.

Mr Mathison explained, “All these things are new and federally mandated” since the FERC license was renewed. Looking ahead, he said, “We’re optimistic that some of the cleanup will be better than in the past.” In addition to recent lake cleanup improvements that will make the water safer for boaters and water skiers, for example, is another touch of improvement coming from Mother Nature.

“The volume of new water coming in is off the charts,” Mr Mathison said.

Northeast Generation Services Company, a wholly owned subsidiary of Northeast Utilities, is one of 15 generating plants throughout Connecticut and Massachusetts involved in a sale to Energy Capital Partners of New Jersey and San Diego. Learn more about the pending sale at www.nu.com/media/news.asp. See further Shoreline Management Plan descriptions at essexpartnership.com.