Cogeneration plant owners ordered to pay $2.5m

The Carneys Point Generating Plant in New Jersey, US have made a court-ordered payment of $2.5 million to Carneys Point Township.

According to website, the payment was due under the terms of a community benefits agreement but the cogeneration plant’s management had been holding out in a bid to renegotiate the 1991 agreement, forcing the town to go to court.
Carneys Point Generating Plant
The judge issued an order granting a preliminary injunction sought by the township to require the cogeneration plant owners to make the scheduled payment and they have since done so.

The cogeneration plant, which is coal-fired, produces electricity and steam which is purchased by the neighbouring Chambers Works. Excess electricity is also sold to Atlantic City Electric Co.

The host community benefit agreement was made in 1991 and payments began in 1994 when the plant began operating. They are scheduled to continue for 40 years on a sliding scale.

The payment is in addition to property tax bill of about $1.4 million the plant also pays to the township.

Carneys Point officials had said the cogeneration plant's payment represents about 27 percent of the township's annual budget. Without the payment, the township would have faced the prospect of increasing taxes by 71 percent officials had earlier claimed.

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