BL England Plant Pulls the Plug

BEESLEY’S POINT – Announcing a decision anticipated for several months, RC Cape May Holdings, LLC, owner of the B.L. England generating plant in Beesley’s Point, will shut it and retire its operations rather than move ahead with a plan to attempt a conversion from coal-fired to natural gas power.
RC Cape May Holdings, LLC, a subsidiary of Rockland Capital, a Houston-based private equity firm, revealed the company’s intent not to “repower” in legal filings Feb. 27.
Upper Township Mayor Richard Palombo told the Herald March 1 that he and Upper Township Committee “felt comfortable about the near future” regarding the significance of the announcement.
“Since energy receipts will continue as they have when other plants have closed in the state, we’re not anticipating any tax implications. Still, we were disappointed about the situation with the pipeline because we need something for energy redundancy looking at the future 10 years from now and its potential challenges,” he continued.
The plant, one of the few remaining coal-burning sources of electricity in the state, has been in operation for 57 years. It provides electricity and jobs for the local region, as well as millions of dollars in tax revenues for Upper Township. However, it has also been targeted as using obsolete and polluting technology, emitting thousands of tons of sulfur dioxide and other chemicals over the decades of its operation, per the state Department of Environmental Protection (NJDEP).
The original conversion plan was controversial in and of itself. Coupled with a years-long attempt by South Jersey Gas (SJG) and resulting litigation with a consortium of organized and vocal plaintiff environmental groups to place a new pipeline traversing parts of the protected Pinelands, both projects elicited consistent protest and rallies to prevent moving forward.
With the decision to close the power plant, the justification for any SJG pipeline probably no longer exists, according to environmentalists. Moreover, if SJG ever decides to resubmit its application for the pipeline to traverse the Pinelands, it could be unlikely its approval would be forthcoming given the change in governor.
Phil Murphy, who campaigned on a “pro-environment” plank, made new appointments to the Pinelands Commission, which was charged with determining if the pipeline should go forward using the standard that it “is primarily for the benefit of the Pinelands.” This is a standard that environmentalists have stated was not upheld by some of the commission’s previous members. 
“This shows what can be accomplished through our unwavering perseverance to protect the Pinelands,” stated Amy Goldsmith, state director, Clean Water Action, in a press release.
“Grassroots efforts and litigation were key and it shows what happens when you stay strong and don’t sell out,” added David Pringle, Clean Water Action’s former state campaign director.
SJG issued a press release noting “its commitment to ensuring safe, reliable, affordable natural gas service.”
“While we are disappointed by the potential impact this notice may have, we remain committed to the vitally important Cape Atlantic Reliability Project and to meeting the needs of the residents and businesses in southern-most New Jersey,” stated Dave Robbins, president, SJG. “Delaying needed investments to reinforce infrastructure compromises service and safety – and that’s not a risk we are willing to take.
“We’ve already begun to explore alternative solutions that will allow for a secondary supply of natural gas, needed to create reliability and resiliency for the 142,000 customers in Atlantic and Cape May counties who count on us to heat their homes and provide hot meals and hot water for their families,” Robbins continued.
Palombo told residents at an Oct. 23, 2018 Upper Township Committee meeting that “there was reason to be hopeful,” although the coal-fired units of the plant were expected to shut down in spring of 2019, and there was no end in sight to the legal challenges about transporting natural gas to the site. He provided few other details, noting at the meeting that he had met with plant representatives and with a wind-power company, with more meetings on the way.
“I’ll just say that there are some optimistic things and some opportunities that are out there,” Palombo said Oct. 23, 2018. “We just hope that our continued talks will be fruitful, and we can continue to move forward.”
Following up on those comments March 1, Palombo said, “We don’t know what the Legislature will do regarding offshore wind and there is proprietary information that can’t be shared at this point. But, beyond job creation that the England plant provides, we are hopeful that the plant will be repowered with better fuel. The wind-power opportunity could garner a lot less resistance than the gas pipeline.
“We need to keep in mind, though, we still need to provide for the future by creating more energy to overcome the brown-outs we experience in peak summer season, create the ability for redundancy in gas-fueled heat in the event of a disaster, and that the 142,000 residents who are served by this energy link are provided for over the long term for their needs,” the mayor concluded.
To contact Camille Sailer, email csailer@cmcherald.com.