Everett LNG Contracts Face Skepticism in DPU Proceedings

Proposed gas supply agreements between Constellation Energy and Massachusetts gas utilities that would keep the Everett Marine Terminal operating through 2030 are facing significant pushback from environmental organizations and the state Attorney General’s Office in time-constrained proceedings at the Department of Public Utilities. 

Everett is an LNG import facility located just outside of Boston and is the only facility in the region that can directly import and inject LNG into the gas system. The main customer of Everett, the Mystic Generating Station, is set to retire at the end of May at the conclusion of a two-year cost-of-service agreement with ISO-NE, threatening the future of the import facility. 

A CLF appeal had the potential to threaten the contracts only if the state Supreme Judicial Court (SJC) thought the issues stated in the appeal merited a hearing by the full court, said Joe LaRusso, senior advocate at the Acadia Center.

“What the DPU denial of CLF’s intervenor status prevents, then, is CLF filing a meritorious appeal to the SJC and a potential direct challenge to DPU approval of the contracts.”

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