A 214 MW Connecticut coal-fired power plant owned by U.S. power company AES Corp. has filed for bankruptcy protection in a Delaware court.
In court papers, AES Thames LLC said a rise in coal prices and transportation and compliance costs over the past decade have led to a substantial increase in production cost. The company generates and sells electricity to the Connecticut Light and Power Co (CL&P).
AES Thames also cited an ongoing lawsuit with Smurfit Stone Container Corp. over the supply of steam as one of the reasons for filing Chapter 11. The company had told Smurfit Stone and CL&P on Jan. 26 that it planned to temporarily shut down the facility.
AES Thames said it has about $162 million in total assets and employs 43 people.
Read more business news and features