Proposed Peabody Generator's Financing Approved; Critics React

PEABODY, MA — Environmental and resident advocacy groups once again expressed their frustration on Thursday after the state Department of Public Utilities approved $170 million in financing for the proposed 55-megawatt fossil fuel-powered surge capacity generator planned for the Waters Rivers substation on the Peabody/Danvers line.

In the 59-page decision, the state DPU denied appeals from the Mass. Climate Action Network and resident James McAvoy that they should be allowed to intervene in the Massachusetts Municipal Wholesale Electric Company's plans to build the generator that the utility company claims necessary to provide power to its member communities — including Marblehead and Peabody — that is reliable and cost-stable in the event of extreme or catastrophic weather conditions.

The opposition groups contend that any new generator that uses natural gas and diesel fuel for power is contrary to the state's mandate to achieve carbon neutrality by 2050 and could result in negative health and quality-of-life implications for Peabody residents and those of its neighboring Environmental Justice communities.

"We are deeply disappointed by the outcome of this proceeding," said Sarah Dooling, Executive Director of the Massachusetts Climate Action Network in a statement to Patch. "DPU's approval brings MMWEC one step closer to building a power plant that will contribute to local pollution and harm local community members while highlighting — yet again — how broken DPU processes are. The DPU is meant to serve the people of the Commonwealth by considering safety, security, reliability of service, affordability, equity and greenhouse gas emission reductions in their decision-making."

The opposition groups, as well as some North Shore political and health officials, have called on the MMWEC to conduct a voluntary environmental impact review — which it is not required to do — and have petitioned Gov. Charlie Baker to step in and reopen the approval process for the project that has been in the planning for six years, but for which public outcry only gained momentum over the past six months.

The MMWEC did make some changes to the original Project 2015A, including removing one of the 200,000-gallon oil storage tanks and changing the generator's scrubbing agent from ammonia to the more environmentally friendly urea.

The Peabody Municipal Light Company agreed to wind down the operation of a 20-megawatt generator currently at the site when the more efficient 55-megawatt generator is operational.

The utility said it will also continue to explore the use of "green hydrogen" to replace natural gas and diesel oil as a primary fuel source, but allowed the viability of that may not be determined for some time.

The MMWEC said the new generator is expected to operate about 239 hours a year under extreme weather conditions and will be 94 percent more efficient than the average of current surge capacity generators across the state.

Opposition groups contend that even "efficient" fossil fuel-powered plants and generators are still adding to the crisis the state's climate initiative is meant to attempt to mitigate.

"The DPU's approval of $170 million in bonds for this polluting power plant is insulting to Peabody residents who are concerned for their health and our climate," said Mireille Bejjani, Massachusetts Community Organizer with Community Action Works. "Just days after the latest IPCC report showing the devastating impacts of the climate crisis, DPU is choosing to invest millions in fossil fuels over the protests of neighbors who just want to breathe clean air.

"Something is very wrong here."

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