Proposed WD Power Plant Not Recommended to BPU

West Deptford Energy, LLC’s proposed natural gas-fired power plant ran into a potential roadblock this week when it didn’t make the list of three plants recommended to the state Board of Public Utilities (BPU) under the Long-Term Capacity Agreement Pilot Program (LCAPP).

Of the nine plans that qualified, consultants Levitan and Associates put their weight behind proposed combined-cycle natural gas-fired plants in Newark, Old Bridge and Woodbridge, totalling 1,948.5 megawatts, out of a potential 2,000 megawatts under LCAPP.

In a letter to the BPU, Richard Levitan, president of Levitan and Associates, said the choice of the trio “offers substantial net economic benefits on an expected value basis over the relevant planning horizon to New Jersey’s electric customers.”

The legislation that created LCAPP was initially criticized by industry groups as overly favoring the proposed power plant in West Deptford, but several changes were made to the law before it passed both the Assembly and Senate, and was eventually signed by the governor in January.

Tom Hoatson, director of development and regulatory affairs for LS Power, West Deptford Energy's parent company, said the legislation and resulting LCAPP were one of several needed components to the West Deptford plant beginning construction by the end of 2011.

Hoatson was not immediately available for comment Friday on the recommendation to the BPU.

Levitan and Associates’ recommendations are not binding, however, said BPU communications director J. Gregory Reinert.

A final report will be issued to the BPU Monday afternoon, and a special agenda meeting is slated for March 29, when a decision could be made on which plants are approved under LCAPP.