Oxford Power Plant Project Secures Financing

OXFORD, CT - Still no news on a revised tax stabilization agreement with the town of Oxford and Competitive Power Ventures but financing for the massive project has now been secured.

Competitive Power Ventures ("CPV") and GE Energy Financial Services announced recently they have closed financing on the 785 megawatt CPV Towantic Energy Center ("CPV Towantic"). A total of 16 lenders have agreed to finance the $753 million project.

Critics of the planned power plant in Oxford near the Middlebury line say they will not give up in their fight to keep it from being built, the Republican-American reports.

Oxford residents recently voted against a $112 million tax stabilization agreement, which would have been paid over a 22-year period between the town and CPV, and First Selectman George Temple told the Rep-Am that means Oxford will only receive $5 million this year instead of $8 million, which would have helped the town keep the tax rate even lower.

Temple said his focus is on the local budget for now and not a revised tax deal with CPV. Temple has stated the $112 million deal was fair for the town.

In a release, Gary Lambert, CPV President and CEO, discussed the GE financing deal.

"We are grateful to the Malloy administration, the many Connecticut agencies involved and the scores of staff for all their hard work in reviewing and approving the CPV Towantic project. We'd also like to express our deep appreciation to our many supporters and the government of the Town of Oxford and neighboring towns that supported the project over the years for their input and hard work."

According to CPV, the 785-MW combined cycle plant will be able to provide the equivalent power needed to supply approximately 800,000 US homes.

CPV Towantic was originally approved by the Connecticut Siting Council in 1999 as a 512 MW project, but was not built due to market conditions. CPV entered into a partnership with GE Energy Financial Services in 2012 to advance the project and its competitiveness in the marketplace.

CPV Towantic represents one of the largest private-sector infrastructure projects in the state. A study by the University of Connecticut’s Connecticut Center for Economic Analysis (CCEA) projects construction and operation of CPV Towantic will generate more than $7.9 billion in new personal income for Connecticut residents over the next 25 years and will create, at its peak in the construction phase, more than 2,300 positions, according to the prepared statement.

During its operating life, CCEA projects CPV Towantic will generate approximately 1,800 new jobs. However, neighboring residents have raised health and safety concerns about the power plant, and are worried the plant will negatively impact their houses property values.

Read the full Rep-Am story here.