A Bankrupt Massachusetts Power Plant Agrees to a $43 Million Settlement With Regulators
Massachusetts power plant operator Salem Harbor Power Development LP on Tuesday asked a U.S. bankruptcy judge in Delaware to approve a $43 million settlement with federal energy regulators over construction delays at its natural-gas fired plant.
Salem Harbor said it had agreed to pay a $17 million civil penalty and to disgorge $26.7 million in profits as a result of a Federal Energy Regulatory Commission (FERC) investigation into its collection of payments meant to incentivize energy production. FERC had alleged that Salem Harbor took $100 million in payments, but failed to meet power generation commitments due to construction delays that prevented its power plant from opening on schedule. Salem Harbor did not admit wrongdoing, but said the settlement would avoid costly litigation in its bankruptcy case.
