I came across a Boston Globe article that indicated a group called Public Citizen has asked federal regulators to investigate Energy Capital Partners, the alleged new owners of Brayton Point Power. In documents filed with the Federal Energy Regulatory Commission on 4/14/2014, Public Citizen alleged Energy Capital Partners knew that closing Brayton Point would push up the price of electricity and increase revenue for their other power stations. The Boston Globe story states:
With Brayton Point scheduled to close in 2017, ISO New England recently paid energy generators $2 billion more for making commitments to provide energy to the region that year, according to the FERC filing. As a result, Public Citizen claimed, five other plants owned by Energy Capital Partners reaped an extra $100 million. “We see this as an intentional move to withhold capacity so that their other operating units can make money,” said Tyson Slocum, director of Public Citizen’s energy program.Before I discuss this, lets recap what has happened over the last several years. There has been a war waged on coal, fossil fuels, and coal powered plants by the Obama administration and his lawless EPA. Barack Hussein Obama has unleashed the federal government onto power plants like Brayton Point by way of a myriad and maze of EPA rules and regulations aimed at shuttering these power plants forever. The federal government has stymied coal fired electricity production with the end-goal of closing down most, if not all, coal fired electrical power plants in New England and throughout the United States. That is a fact! The Commonwealth has also done its part with Cap and Trade legislation, also with the end-goal of closing coal fired plants here in New England. In addition, environmental pressure groups have brought enormous pressure upon Brayton Point with their pseudo-science of climate change and global warming falsehoods. Most, if not all, of these aforementioned pressures have emanated from lawless bureaucratic government intervention and manipulation of private companies that own these power plants. These power plants have never, ever, operated in a free market system. And, let us not forget, these power plants were created in the very first place to fulfill the electricity consumption needs and demands of consumers, like you and I. The only reason Brayton Point exists in the first place is due to incredibly high consumer demand of electricity and the profit motive. Period.
Those are the reasons why Brayton Point has closed down and there are no other reality based reasons whatsoever.
That being said, Energy Capital Partners is a private equity firm focused on investing in America’s energy infrastructure and, of course, making a profit. Yes, they exist to make a profit (OMG) by way of disciplined investments in the energy sector. That is what they do, day in and day out! That is their motive, so don't kid yourselves! They allegedly purchased Brayton Point as an investment to earn a substantial profit. There are no other reality based reasons whatsoever.
Legally, I very much doubt Public Citizen or federal regulators will be able to prove that Energy Capital Partners "intentionally" closed Brayton Point to "withhold capacity" so their other operations can make money. That seems nearly impossible. In all likelihood, Energy Capital Partners will deny the allegations and handle this under their own lowest ultimate cost principles of risk management. But, even if they did prove it, what is wrong with what they are accused of doing? Answer: nothing....
As I said, Energy Capital Partners allegedly invested in Brayton Point to make a profit. Perhaps Brayton Point won't make a profit ever again, but the fault of that lies solely with Obama, the EPA, Cap and Trade, the Commonwealth of MA politicians, and the crazy environmentalists.
I see nothing wrong with withholding supply to boost demand and prices to benefit other operations and using Brayton Point as the vehicle to accomplish the goal. Energy Capital Partners is simply using the government's corrupt bureaucracy and the government's overreaching manipulations and the government's hideous interventions to their own profitable advantage to maximize profits with other power generation facilities they own. This is what happens when the government inserts itself into the free market economy versus allowing Adam Smith's so called "invisible hand" to work its magic. It is the government, and only the government, that has caused the calamity we are in now.
The illegal and ridiculous road blocks were erected by the government, so don't blame Energy Capital Partners for jumping over them, going around them, or ignoring them.