Power Sources
Bonds and Financing

MMWEC sells ownership interests in oil-fired plant

The Massachusetts Municipal Wholesale Electric Company (MMWEC), the joint action agency for municipal utilities in Massachusetts, has sold its ownership interests in W.F. Wyman Station oil-fired Unit 4, located in Yarmouth, Maine.

Known as the Wyman Project, the output of MMWEC’s Wyman ownership interest was sold to 12 municipal light plants in Massachusetts.

MMWEC sold its ownership interests in the Wyman 4 plant on July 19.

MMWEC owned approximately 3.7 percent, or about 22 megawatts of the unit’s 610-megawatt capacity. The participants in the Wyman Project include municipal utilities in the communities of Boylston, Holyoke, Hudson, Hull, Littleton, Marblehead, Middleborough, Middleton, North Attleborough, Shrewsbury, Wakefield, and Westfield.

The Wyman Project was established in 1976. At the time, MMWEC had developed a balanced power supply system consisting of fossil fired generation (including Wyman) and nuclear generation.

The power supply mix, with different amounts and types of generating capability, was developed in a manner consistent with sound utility power supply planning, MMWEC noted.

“Today, changes in wholesale electric markets and evolving power supply strategies and policies create a need for a different power supply mix. The sale of the Wyman asset is more consistent with current sound utility power supply planning for the Wyman Project participants,” MMWEC said.

The Wyman plant, located on Cousins Island, was built on a 122-acre site in 1978, as a baseload generation unit. When it came online, it marked a milestone for MMWEC and its project participants.

For the first time, participating municipal light plants purchased power at cost from a unit financed with lower cost MMWEC revenue bonds and owned by MMWEC, their own power supply agency. Revenue bonds issued by MMWEC to finance the Wyman Project totaled $9.42 million. All revenue bonds related to MMWEC’s Wyman Project were paid off in 2008.