New Power Company CEO

Talks About Fees, Environment

By Kendra Bobowick

Residents along Lake Lillinonah may see some administrative fees in years to come, but the president and CEO of NE Energy, a standalone operating company under Energy Capital Partners, spoke with confidence that little else will change financially or environmentally.

“We will be good stewards to the environment,” CEO Curtis Morgan said. NE Energy and Energy Capital Partners recently received authorization from the Federal Energy Regulatory Commission (FERC) to purchase the competitive generation business of Northeast Generation Service (NGS) from Northeast Utilities. Northeast is part of a series of hydroelectric facilities and includes the power stations at the Shepaug Damn and Stevenson Damn and includes Lakes Lillinonah, Candlewood, and Zoar.

The sale to Mr Morgan’s company was the last in a series of public worries voices by residents this summer as NGS went through its FERC licensing renewal process. The power company must comply with the federal commission’s operating license, which includes a Shoreline Management Plan (SMP). This plan stipulated a series of one-time and annual fees for residents along Lakes Lillinonah and Candlewood — Zoar’s private property boundaries extend predominantly below the waterline while the larger lakeshores are primarily owned by the water company to several feet beyond the water.

First protesting the usage fees that had always been in the management plan but had not been enforced previously, and other one-time fees for structures along the water including docks and gazebos, the residents managed to grab Attorney General Richard Blumenthal’s attention. He also spoke against the fees and made his complaints know the federal level when NGS filed its management plan.

Increasing residents’ uncertainties was the unknown element of a new company stepping into NGS’s position. The $1.3 billion sale bought NGS along with its licensing, and Mr Morgan’s company assumed the license, which is still under review by FERC.

He holds no surprises for residents, explaining, “I think everyone understands the fee structure will remain the same as it is in the SMP.”

Mr Morgan also explained that there will be an annual administrative fee, however.

“It’s something the previous owners were not collecting,” he said. “We do have to inspect docks, enforce zoning.” He explained also that his company needed to be sure that no one was using the land improperly. The fees will be roughly $200 and will not be instituted until one year after FERC accepts the SMP.

Other one-time registration fee for structures such as docks are described in the SMP. The fees come with a grace period, however.

“If you register an existing structure within six months the fee is waived,” he said. Owners of new structures will incur one-time costs of between $300 and $1,000.

Environmental issues also arose in recent months as residents, again joined by Mr Blumenthal’s voice of protest, learned that the FERC licensing allowed for water levels several feet higher than current levels.

With reassurances, Mr Morgan said, “First, we would not do anything to harm any life or vegetation. We will keep the water levels at historic levels.” As with previous owners, NGS, NE Energy (an interim name) will raise or drop levels for brief periods.

Mr Morgan stressed that the fluctuations will not be harmful.

“I don’t anticipate lows or highs for extended periods of time that will have a negative impact.”

Mr Morgan has noted Mr Blumenthal’s presence in the prior opposition, but has made no concessions.

He said, “I know the attorney general and it is always important for us to have a dialogue — it doesn’t mean we’ll always agree, but we’ll have an open channel.”

Finally, Mr Morgan made efforts this week to speak with municipal leaders of towns, including Newtown, with properties effected by the power company sale. First Selectman Herb Rosenthal was unable to attend Wednesday’s midday conference, however. Spokesperson Donna Powell said they will contact Mr Rosenthal with future meeting dates.