ISO Set to Move on New Plants

By JAY FITZGERALD

The overseer of New England’s electric system is pushing ahead without Massachusetts on a controversial plan to encourage the building of new power plants at a cost of $5 billion over the next four years.

ISO New England, which operates the region’s power grid network, reached an agreement with Connecticut, New Hampshire, Rhode Island and Vermont – as well as with other interested parties – on a new “forward capacity market” plan.

The agreement was filed yesterday and ISO New England has asked the Federal Energy Regulatory Commission to OK its terms by June 30.

“This agreement is a critical step forward in the development of a reliable, efficient power system,” said Gordon van Welie, chief executive of ISO New England.

But the deal is moving ahead without the blessings of Massachusetts and Maine.

“This is nothing more than a $5 billion bailout for generators,” said Massachusetts Attorney General Tom Reilly, a longtime critic of ISO New England’s build-out proposal.

“This plan forces New England and Massachusetts ratepayers to foot the bill for billions in subsidies to power generators,” he said.

ISO New England said the region desperately needs new power plants to meet demand.