New Owner of Maine Gas Plant Looks to Exit Old Contracts, Files Chapter 11

 New Owner of Maine Gas Plant Looks to Exit Old Contracts, Files Chapter 11

The new owner of a Maine power plant and the adjacent paper mill is looking to exit old contracts with its local gas distributor and turbine maintenance provider to better suit the “reduced scope” of the plant’s operations.

In January, AIM Development LLC purchased the former Verso Paper Mill and a 303-MW gas-fired power plant that supplied energy to the mill.  The facilities now operate as separate subsidiaries, Bucksport Generation LLC and Bucksport Mill LLC., and the plant no longer powers the mill’s operations.

On Nov. 3, Bucksport Generation filed Chapter 11 bankruptcy in an effort to reject contracts with Bangor Gas, which supplies gas for the plant, and General Electric International Inc, which provides maintenance for the plant’s 185-MW gas turbine.

“The energy plant’s change in operations from a continuous source of energy power the mill to a merchant generator greatly reduces the amount of natural gas the energy plant requires to operate and completely changes the necessary timing and amount of maintenance G4 needs,” writes Kyle Nenninger, partner in Energy Advisory Partners and power plant employee, in the bankruptcy filing.

Bucksport Generation has filed motions to maintain possession of the power generation assets through the bankruptcy, and AIM wants to give Bucksport Generation a $10 million line of credit to remain in operation until the proceedings are complete.

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