June 24 (Reuters) - Constellation Energy ( CEG ) on May
31 permanently shut down the natural gas-fired Mystic Generating
Station located in Charlestown, Massachusetts, the Energy
Information Administration (EIA) said in a report on Monday.
The agency added Mystic's future had been uncertain when in
2018 its then-owner, Exelon ( EXC ), sought to retire the plant
due to profitability concerns.
However, recognizing its role in ensuring fuel security and
system reliability during the peak winter demand season, grid
operator Independent System Operator New England (ISO-NE)
mandated the plant remain operational until May 31, 2024, the
report said.
The retirement of Mystic also raised concerns about the
future of the adjacent Everett LNG terminal, also owned and
operated by Constellation and which supplied 100% of the plant's
natural gas, EIA added.
However, under new long-term supply contracts secured with
regional utilities, Constellation will keep the Everett terminal
operational through winter 2029-2030, according to the EIA
report.
The contracts ensure a steady supply of natural gas for New
England, particularly during the critical winter months when
natural gas price spikes are common due to pipeline limitations,
EIA said.