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May 21, 2013

NRG shutting Norwalk oil-fired power plant

Contributed Photo NRG Energy will shut its Norwalk Harbor Generating Station on June 1 because the New England capacity market prices have dropped too low for the petroleum-fueled plant to cover its costs.

NRG Energy will shut down its oil-fired power plant in Norwalk on June 1, eliminating up to 35 jobs at the facility, the company told HartfordBusiness.com on Tuesday.

Prices in the New England market have dropped too low to make the plant's operation economical, said Dave Gaier, NRG spokesman.

The Norwalk Harbor Generator Station churns out 340 megawatt only when demand for electricity is high.

The majority of its revenues come from the capacity market in the region, where the plant receives payment simply for being able to provide power, rather than consistently generating electricity to sell on the energy market.

The capacity prices in New England have dropped to the point where NRG, which is headquartered in New Jersey, doesn't make enough revenues to pay for the plant's costs. The company doesn't see the capacity prices increasing anytime in the near future, Gaier said.

"The risks associated with being a capacity supplier have become too high to keep this plant in operation," Gaier said.

NRG employs 37 at the plant. Once it is shuttered, that headcount will drop to two, Gaier said.

NRG would not disclose the financial terms of the closure.

With the Norwalk closure, NRG now operates seven power plants in Connecticut, including sites at Middletown, Montville, and Milford, along with four jet engines spread throughout the state that only operate in times of extreme electricity demand.

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