Connecticut utility files for new peaker plants

HOUSTON, Feb 1 (Reuters) - Northeast Utilities System's (NU.N: Quote, Profile, Research) Connecticut unit on Friday filed paperwork to build two new power stations, the utility's first new regulated generation since the state's 1998 electric restructuring which required companies to divest electric assets.

Connecticut Light and Power Co filed its project qualifications with the Connecticut Department of Public Utility Control, the first step to gain approval to build two "peaking" generation units, the company said in a release.

The utility wants to add a 65-megawatt plant in Waterbury and four units totaling 200 MW on CL&P-owned land in Lebanon. The units would begin operation in February and June 2010, respectively.

"These plants, if approved, will help stabilize energy costs and ensure a more reliable power supply for our customers in Connecticut," said Raymond P. Necci, CL&P president, in a release.

Peaking plants are used during periods of high electricity demand, or system emergency. Peaking plants can start up quickly and run for a short period of time, typically less than 200 hours a year, the company said.

The Connecticut General Assembly last year approved legislation to allow utilities to make proposals for a specific type of regulated peaking generation plant. (Reporting by Eileen O'Grady; Editing by Marguerita Choy)