Invenergy offers $18.4M for Woonsocket water

A RENDERING of the proposed natural gas-powered electrical plant in Burrillville.  / COURTESY INVENERGY LLC
A RENDERING of the proposed natural gas-powered electrical plant in Burrillville. / COURTESY INVENERGY LLC

WOONSOCKET – Invenergy Thermal Development LLC has offered Woonsocket a minimum of $18.4 million over 20 years for access to its water supply, which it would use to make electricity at its controversial gas-powered power plant proposed for Burrillville.

City Mayor Lisa Baldelli-Hunt on Tuesday revealed details about the offer, which culminated after weeks of closed meetings. The city will hold a public hearing on Friday at Woonsocket High School to give its residents an opportunity to ask questions and make comments about the offer.

“Public disclosure of the details of the offer is being made to better inform the residents of Woonsocket,” she said in a statement. “It is of the utmost importance for Woonsocket residents to be fully informed and understand the details of the offer, and attendance is strongly encouraged.”

Invenergy, of Chicago, has proposed to enter into a long-term water deal with the city. Besides paying for the water, Invenergy would also purchase land for a transportation facility, employ three people and pay the city $200,000 per year for 20 years in a tax treaty. The company, which is required to find a water source should the state move forward with its permit-review process, would also pay the city an additional $500,000 per year, escalating at 3 percent each year, which would go into the city’s general fund.
Finally, Invenergy has offered to pay $200,000 per year for five years, which could be used for a technical or vocational scholarship fund or athletic fields.

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Invenergy needs the water in order to move forward on its proposed 1,000-megawatt, gas-fired power plant called Clear River Energy Center. The power plant has been the subject of much controversy for more than a year, as town residents, environmentalists and renewable-energy advocates have fought against the project, while politicians and gas-advocates have lauded the $700 million project.

The R.I. Energy Facility Siting Board must decide whether to allow the plant, and in October suspended the company’s application after Invenergy failed to make a deal with the Pascoag Utility District for water. The failed deal sent Invenergy executives scrambling for an alternative, resulting in the Woonsocket offer.

If the company is successful in making the deal, and receives approval from the state, Invenergy would transport water from the northern Rhode Island city to the power plant. Water is imperative in the electricity-making process, as it’s used to cool generators.

Baldelli-Hunt says more information regarding the public hearing will follow.

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