Monday, May 11, 2009

UI and politicians go head to head

How did I miss this one?

Blumenthal, DeStefano rip UI executives (New Haven Register)

While I can understand the mayor's frustration at UI vacating a good deal of corporate real estate, I don't understand his position regarding the English Station.  UI was required by law to sell that plant.  They also gave almost $2 million to Quinnipiac Energy to clean up the site.  Though QE apparently frittered away that money without cleaning up the site, UI is still on the hook for the cleanup.  If anyone should be mad it should be the shareholders who will have to pay for the cleanup twice.   What did Quinnipiac Energy do with the money?

For more information on this, please click here to read my previous post on this matter.

UPDATE:  Here is the relevant info from UI's latest SEC filing.
A site on the Mill River in New Haven was conveyed by UI in 2000 to an unaffiliated entity, Quinnipiac Energy LLC (QE), reserving to UI permanent easements for the operation of its transmission facilities on the site.  At the time of the sale, a fund of approximately $1.9 million, an amount equal to the then-current estimate for remediation, was placed in escrow for purposes of bringing soil and groundwater on the site into compliance with applicable environmental laws.  Approximately $0.1 million of the escrow fund remains unexpended.  QE has since sold the property to Evergreen Power, LLC (Evergreen Power) and Asnat Realty LLC (Asnat).  UI is unaware of what agreement was reached between QE and Evergreen Power and Asnat regarding future environmental liability or what remediation activity remains to be undertaken at the site.  UI could be required by applicable environmental laws to finish remediating any subsurface contamination at the site if it is determined that QE and/or Evergreen Power and Asnat have not completed the appropriate environmental remediation at the site. In July 2008, Evergreen Power and Asnat submitted a claim seeking compensation for environmental remediation on the property, including the existing building which remains on the site. Based upon the current status of the evaluation, UIL Holdings has not recorded a liability related to this claim in its Consolidated Balance Sheet as of March 31, 2009.

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