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Sithe Energies Abandons Plant Plans

MEDWAY, MA-Sithe Energies decides not to develop a power generating station on part of a 95-acre parcel it owns here. A spokesperson for the firm says the plan has not been cancelled, only suspended.

By Naomi Grossman | Updated on March 15, 2002

MEDWAY, MA-Sithe Energies, a major power plant owner in the region, has decided not to develop an electricity generating station on part of a 95-acre parcel it owns here.

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.”

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