Salem Harbor Power Plant Owners Seek Approval For Their $43 Million Settlement With Federal Regulators
The owners of the Salem Harbor Power Development plant are asking a federal bankruptcy judge to sign off on a $43 million settlement with federal regulators over allegations that the firm withheld information about construction delays in order to collect a $104 million capacity payment.
The Federal Energy Regulatory Commission found evidence that Salem Harbor knew as early as spring 2016 that the plant would most likely not be completed by May 31, 2017, due to a series of issues, including having to replace an engineering firm that in turn had to redraw plans, procurement issues and subcontractor disputes.
But reporting the likely delay would potentially have jeopardized capacity payments that were set to begin on June 1, 2017, which the plant’s owners had been awarded in a 2014 auction, federal regulators concluded.
