All Is ‘Status Quo’ At Lakeside After Power Company Sale

By Kendra Bobowick

The pending power company sale that caused turbulence among the lake community in Newtown this summer has received approval. This month the Federal Energy Regulatory Commission (FERC) authorized a sale of Northeast Generation Service’s (NGS) hydroelectric plants along the Housatonic River, which l preempt ocally is reliant on Lakes Lillinonah, Candlewood, and Zoar. New Jersey-based Energy Capital Partners will acquire a handful of power plants including NGS in the $1.3 billion purchase.

Following up on his summerlong attention to the power company, Attorney General Richard Blumenthal issued a statement saying, “I am reviewing this decision to determine what additional action is appropriate. FERC has failed to address critical concerns and questions I raised about Energy Capital Partners’ ability to manage these power plants — and protect surrounding natural resources.

“Energy Capital Partners lack any experience whatsoever in directly managing power plants. At stake are vital natural resources surrounding these hydro power plants, including Lake Lillinonah and Candlewood Lake. Despite our strong urging, FERC neglected to demand the most basic answers about Energy Capital Partners’ ability to maintain these lakes and hydro plants appropriately.”

Further fanning concerns that began to smolder this summer are terms of FERC licensing issued to NGS, which the Energy Capital Partners (ECP) will assume. In particular is the Shoreline Management Plan (SMP) stipulated by the licensing. Within the SMP, also recently contested by Mr Blumenthal and loudly protested by lake proponents including Lake Lillinonah Authority Chairman Bryan Piepho, were stipulations for imposing fees to residents with structures including docks, gazebos, sea walls, etc, that encroached on water company property — the waterline and lake along lakes Lillinonah and Candlewood — and potentially raising the operating water levels, which drew complaint from the environmental community. NGS had recently submitted its SMP, which FERC is reviewing.

These previous grievances also were noted in FERC’s acquisitions order, which reflects that Mr Blumenthal also raised concerns regarding the shoreline management plan submitted by Northeast Generation Services. The order states, “[Richard Blumenthal] argues that the new owner must comply with the shoreline management plan and understand the effect the plan has on residents surrounding Candlewood Lake and Lake Lillinonah.”

Mr Piepho believes that despite the sale, lake management remains “status quo,” he said. As for the shoreline management and licensing concerns raised this summer, he said, “The issues will roll over.”

He is reassured that the personnel employed at the hydropower facilities will remain. He said, “It’s not an issue as long as we know who we’re dealing with.”

Regarding his worries that the lake water levels could possibly rise several feet — which is permissible per the current licensing — Mr Piepho indicated that he has received verbal, not written, reassurances that the water levels will not change permanently.

Requests for comment from ECP representatives were unanswered by press time.