Sithe already has an existing power plant on this site and was planning to develop the new plant on 15 acres here. A spokesperson for the company, Andrew Siegel, emphasizes that the company has not cancelled the plans for the plant but has only "suspended" them.

In a statement sent to GlobeSt.com the company says, "Current market conditions make the construction of this facility at this location uneconomic at this time. Since a peaking plant seldom runs, it must rely on correct energy market prices, a robust ICAP market and proper Reserve Market revenues. The considerable flaws in the New England Energy, ICAP and Reserve Markets currently prevent an investment in a peaking plant. Our decision underscores the direct link between market rules and investment decisions that will contribute to providing the capacity for economic growth."

According to Siegel, the decision on the plant is purely an economic one and has nothing to do with any local opposition. Siegel notes that Boston Edison has an easement on the land and has electric substations and power lines there.