By William Opalka
Iberdrola USA and UIL Holdings have agreed to clean up an abandoned power plant site in New Haven if Connecticut regulators approve their proposed $3 billion merger.
The companies on Thursday agreed to a consent order with the state’s Department of Energy and Environmental Protection that would allow the contaminated English Station site to be cleaned up for reuse.
The Connecticut Public Utilities Regulatory Authority rejected the proposed acquisition in June on other grounds, saying that the plan was not in the public interest. The companies refiled a new plan in July that they said addressed regulators’ objections. (See Iberdrola Refiles Acquisition Bid for UIL Holdings.)
The state estimates site remediation would cost under $30 million. The companies have committed to spend any amount in excess of that if necessary.
The agreement was announced in a statement by Gov. Dannel P. Malloy, Attorney General George Jepsen and DEEP Commissioner Robert Klee. “The state will strongly oppose any attempt to recover remediation costs from ratepayers. The companies will propose the scope of work to fully examine the pollution and clean it, and DEEP will review and approve the scope of work,” they said.
“This is an important settlement — to New Haven and to Connecticut. The English Station has long been a site that absolutely needed to be cleaned up and given a second life, and now it will be,” Malloy said in the statement.
The plant is situated on Ball Island in the middle of the Mill River in New Haven. It was operated by UIL unit United Illuminating for 63 years and closed in 1992. It is contaminated with polychlorinated biphenyls, heavy metals and other contaminants.
Administrative proceedings will continue against UIL to determine responsibility for cleanup of contamination in the river, according to state officials.
The acquisition, which includes natural gas distribution companies in Massachusetts, must also be approved by that state’s regulators.
Connecticut regulators will conduct hearings on the acquisition in October. A decision is expected by Dec. 4.