CPV St. Charles Power Plant

CPV St. Charles is a 640 megawatt natural gas combined cycle power plant that is slated to be constructed in Charles County, Maryland by Competitive Power Ventures, Inc., based in Silver Spring, Md. CPV says the plant will be capable of providing power to roughly 600,000 homes. Construction is targeted to begin in the first half of 2009 and targeted to be completed in early 2012. CPV estimates the total project cost at more than $400 million. CPV plans to build and operate the new facility through its wholly-owned subsidiary CPV Maryland, LLC.

The plant will be constructed in the Piney Reach Business Park near the Charles County Landfill on Billingsley Road. The location is a 77-acre stretch of land zoned for industrial use. It is the same location designated in the former Kelson Ridge power plant proposal by Reliant Power in the early 2000's.

The site is adjacent to the landfill, an asphalt plant, and an existing high-voltage transmission line, thus eliminating the need to construct new transmission towers or power lines.

CPV entered into a purchase agreement for the site with American Community Properties Trust, the current property owner and developer of St. Charles.

The plant will use reclaimed water (treated effluent) from the Mattawoman Wastewater Treatment Plant for cooling purposes. The move will reduce the plant's impact on the clean water resources of the area. The plan will also contribute to the clean up of the Potomac River and the Chesapeake Bay by eliminating the disposal of up to several million gallons per day of treated effluent from operations at treatment plant, which would otherwise be discharged into the Potomac River.

The principal terms of the agreement are that CPV will contract for 20 years, with the option of two 10-year renewals, for the purchase of up to 5.4 million gallons per day of treated reclaimed water from the Mattawoman Wastewater Treatment Plant during the period of June through October. During the period of November through May, CPV will purchase up to 3.6 million gallons per day. CPV will design, construct, and pay for an expansion of the County's existing Reclaim Water Facilities.

Charles County and CPV may finance construction of the expansion of the Reclaimed Water Facilities by pursuing up to $30 million in tax-exempt financing for a term of up to 30 years.

The County will treat and dispose of wastewater from the power plant at an average of 210,000 gallons per day. CPV will pay the County's established wastewater treatment rates and interconnect at the County's established interconnection fee.

CPV will make fixed payments to the County in lieu of the Property, Personnel, Fire, Rescue, and Emergency Medical Services Taxes. In addition, CPV will pay for treated reclaimed water utilized in the cooling process. The estimated total of these sources of revenue is approximately $56 million in a 15-year time span.

CPV obtained priority rights to tie the plant directly into the region’s power grid. CPV said the move gives the project a time and cost advantage over other proposed new power plants in the metropolitan Washington DC area.

When completed, CPV St. Charles will be one of the largest taxpayers in Charles County estimates the company and County Commissioners. Its construction will create approximately 350-400 jobs at peak and it will create 30 permanent jobs when operational. The company says it will make strong efforts to use local labor to the greatest extent possible.

“CPV St. Charles will be one of the cleanest natural gas plants ever licensed in this state and will offer a clean, cost-effective and reliable supply of Maryland-generated electricity to meet our region’s growing energy needs,” said Doug Egan, Chairman and Chief Executive Officer of CPV, in a company press release dated Oct. 24, 2008.

Project Timeline

• 2011: Plant expected to come online.
• 2009: Construction slated to begin.
• Dec. 10, 2008: Charles County Commissioners issue press release announcing partnership between county and CPV regarding use of waste water from Mattawoman Wastewater Treatment Plant and respective fees and tax payments.

• Oct. 24, 2008: CPV issues press release stating they have been granted a permit by the Maryland Public Service Commission that will allow construction and operation of the plant. The order by Joel M. Bright, a hearing examiner for the Public Service Commission, grants a Certificate of Public Convenience and Necessity (CPCN) for CPV to construct and operate the plant and accepts a settlement on permit conditions between CPV and Maryland state agencies. The order became effective on November 8, 2008.
  • The permit conditions agreement notes that issuance of a CPCN by the Maryland Public Service Commission for CPV St. Charles is in the public interest as construction of the Project will assist Maryland in addressing a predicted shortfall in electric generation in the in the 2011-2012 time period. The agreement also says that construction and operation of the project in accordance with the conditions in the agreement “would meet or exceed the requirements of all currently applicable environmental laws and regulations, including those relating to noise abatement and the control of air and water pollution.”
• Oct. 1, 2008: Charles County Commissioners approved in a 5-0 vote a resolution of support for the proposal to use reclaimed water from the Mattawoman Wastewater Treatment Plant.
• Dec. 2007: CPV filed state permit application for the plant.
• July 24, 2007: CPV issues press release announcing plans to construct the St. Charles plant.

External links

• Competitive Power Ventures, Inc. website