Transferring Environmental Liabilities & Post-Closure Closure Obligations at Retired Energy / Industrial Plants
POWER PLANT & INDUSTRIAL SITE CLOSURES
ELT’s power plant program is designed for energy companies and other potentially responsible parties seeking a cost-controlled solution for managing the retirement and decommissioning of facilities in the energy and industrial sectors.
The reality of power plant retirement is that budget forecasts seldom align with actual costs – this can be due to a variety of factors including: higher than expected concentrations of contamination, changes to regulatory requirements, fluctuating interest rates, contractor disputes, and so on. This program is designed to accurately forecast cost of closure, maximize the value of retired assets, and eliminate exposure to environmental liabilities.
This program is designed to provide:
- Transfer of Environmental Liabilities
- Transfer of Decommissioning Obligations
- Transfer of All Regulatory Compliance Obligations
- Maximum Value for Retired Assets
- Corporate Indemnification
- Elimination of Compliance Issues
- Protection Against Cost Overruns
- Guaranteed Cost Certainty
- Human Health & Safety Benefits
- Preservation of Brand & Legacy
Recent ELT power plant projects listed below.
Brayton Point Power Station
1600 MW / Retired 2016
In January 2018, ELT announced the assumption of environmental liabilities at the retired Brayton Point Power Station – a retired 1600 MW coal-fired power plant on the south coast of Massachusetts. CDC purchased real estate and power plant assets. CDC will now invest significant resources to dramatically transform the waterfront property and prepare it for post-coal utilization. Pre-development activity will include asbestos abatement, environmental remediation, and demolition of coal-related infrastructure on the site.
Dynegy went to great lengths to choose a buyer who would not only provide fair market value for the real estate assets, but also have the vision and expertise to repurpose the site for new development activity. We commend Dynegy for their proactive approach to ensure that the site would not sit idle and become a source of local blight and economic decay.
– Randall Jostes, CEO of ELT
Tanners Creek Power Plant
1000 MW / Retired 2015
In October 2016, ELT assumed environmental liabilities and purchased real estate and plant assets at the 725-acre retired “Tanners Creek” Power Plant in Lawrenceburg, Indiana. Environmental remediation is currently underway and demolition will begin in 2018.
ELT assumed unique & complex regulatory and redevelopment obligations: large ash pond closures, transmission division expanded footprint, complicated site logistics, public walk/bike path through plant, etc.
Redevelopment of this site has received tremendous support, including former Indiana Gov. Mike Pence who said a port-related project “could unleash enormous economic investment throughout the southeast region of our state.”
While I&M’s expertise in generating power is no longer needed at this site, ELT will use their talents to prepare the site for potential future use and continued benefit to the community.
– Paul Chodak III, President of I&M
Mighty Marysville Power Plant
511 MW / Retired 2011
After 80 years of operations, the “Mighty Marysville” closed in 2011 and quickly became a local hazard/eyesore. In 2014, ELT purchased the power plant and agreed to indemnify DTE Energy from all future environmental concerns. During the transaction, ELT purchased real estate and plant assets and assumed associated environmental and decommissioning liabilities.
Long after operations cease, the legacy and brand of the Seller remains in the community. Following environmental clean-up, redevelopment plans attract new users and sparks new life for shuttered facilities. Today environmental remediation and demolition are complete. The site is currently being marketed for a repurposed use as a new community asset.
Marysville officials credit DTE with making sure it found a buyer that would have a 21st century vision for what riverfront property could be.
– Crain’s Detroit Business
Picway Power Plant
100 MW / Retired 2015
In July 2016, ELT assumed environmental liabilities and decommissioning obligations at the 468-acre, retired “Picway” coal-fired power plant; ELT affiliate Commercial Development Company purchased associated real estate assets.
AEP’s “Picway Plant” began operations in 1926 and is located along the Scioto River in Lockbourne, Ohio. While operational, the plant generated 100 megawatts of electricity and used more than 220,000 tons of coal annually. The plant’s last operating unit retired in May 2015. Environmental impact from decades of coal plant operations prohibited a traditional real estate transaction. An environmental liability transfer and remediation plan proposed by ELT will now enable this site to be cleaned and redeveloped.
Catalyst for Re-development: Prior to ELT’s acquisition and assumption of liability, this 468-acre retired power plant was a source of blight and progressive atrophy. Today, the site is on a fully-funded pathway to environmental remediation and redevelopment.
Chamois Power Plant
66 MW / Retired 2013
The “Chamois Power Plant” delivered electricity to central Missouri for over 60 years. Located along the Missouri River, the plant retired from operations in 2013 due to energy market factors and expected cost issues associated with future environmental regulations.
AECI sought proposals from more than 50 firms for decommissioning the facility and employed a third-party engineering firm to review those proposals. AECI chose to partner with ELT due to its reputation and varied resources to fully decommission the plant and remediate the site.
This transaction allowed AECI to sell non-core real estate assets and transfer significant obligations to ELT, including environmental liabilities, decontamination, demolition, and other decommissioning and regulatory activities. EnviroAnalytics Group (EAG) has commenced a series of remediation and demolition projects at the retired power plant. The expected timeline for completion is 3 years, at which point the site will be marketed for potential reutilization.
AECI conducted an extensive national search, and selected CDC & ELT due to their 25 years of experience and success in remediation and transformation of industrial sites. CDC has decommissioned a number of coal plants and has a solid record of environmental responsibility.
— Brian Prestwood, VP and Chief Compliance Officer at AECI
Transferring Liabilities & Post Closure Obligations at Retired Power Plants
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