Dominion Scrambles to Sign Power Contracts as Millstone Retirement Deadline Approaches

Dominion Energy Inc. is due to make a decision by March 15 on whether or not to retire the 2,100-megawatt Millstone nuclear plant. Despite securing the ability to compete for long-term contracts with other zero-carbon resources such as wind and solar, the biggest zero-emission power plant in the region may be forced to close if it fails to negotiate power contracts with two of Connecticut’s utilities, units of Eversource Energy and Avangrid Inc., before the deadline to submit retirement decisions with the ISO New England Inc.

Dominion argued for years that the Millstone plant was at risk of retirement due to competition from other cheap sources, especially natural gas. All that work finally paid off in December last year when Democratic Governor Dannel Malloy announced the selection of Millstone, along with NextEra Energy Inc.’s Seabrook Nuclear Power Station, for the state’s solicitation for zero-carbon electricity, together with solar and wind generators.

The Department of Energy and Environmental Protection selected a 10-year bid for about 50 percent of Millstone’s output, reflecting the energy-only price for the first three years, and directed the state’s electric utilities to negotiate reasonable terms than those sought by Dominion for the 2022-2029 “at-risk period.” This is where the utility finds itself now, pressed to hammer an agreement that makes financial sense.

According to Dominion, the Millstone nuke produces about half of the electricity in Connecticut and almost 98 percent of its carbon-free electricity.