Power Plant Owners Struggling Under New Market System

January 19, 2011
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Everett’s Mystic Generating Station on the Mystic River has been sold to Constellation Energy Group.

The sale took place earlier this month.

The mammoth energy generating facility with its huge brick building and four giant smokestacks,  was sold to Baltimore based Constellation Energy Group for an undisclosed sum of money.

It was sold as part of a sale of equities totaling $1.1 billion.

Boston Generating said it was having difficulty meeting its obligations because of low prices in the so-called Forward Capacity Market for energy.

Because it failed to earn enough cash from the Everett plant, it failed to meet payments on its roughly estimated $1.9 billion in debt.

The sale to the Constellation Group appears to have cost those who gave the mortgages to Boston Generating about $800 million.

This would be, easily, the biggest capital loss ever suffered by a business operating in Everett.

In the meantime, the city’s tax collections from the generating station appear to be stable and up to date.