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Firms' Dispute May Delay New Massachusetts Power Plants.

The Boston Globe (Boston, MA)

| March 26, 2001 | COPYRIGHT 2001 The Boston Globe. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Ross Kerber

Mar. 20--Two new power plants considered crucial to the region's supply of electricity could be delayed by ongoing disputes between Raytheon Co. and the firm that bought Raytheon's construction division last year, according to court filings.

Sithe Energies Inc., developer of the plants in Everett and Weymouth, filed a complaint in New York State Supreme Court on March 12 to force Raytheon to take responsibility for work abandoned by the firm that bought Raytheon's construction assets, Washington Group International Inc.

The two companies reached a partial settlement March 15, and both say they now will work to complete the plants on schedule. "We think we're going forward arm-in-arm" with Raytheon, said Sithe's attorney, Robert King, of the Debevoise & Plimpton firm in New York.

But some of the issues remain on the table and Sithe hasn't withdrawn its suit, King said, in case further problems arise. Raytheon was scheduled to begin reviewing operations at the two plants yesterday.

The two Massachusetts plants are scheduled to begin commercial operations as soon as May 2002, Raytheon said in a court filing.

The plant in Everett, known as the new Mystic station, will be a 1,600-megawatt, gas-fired facility; the one in Weymouth, located along the Fore River, will produce 800 megawatts and will be fired both by natural gas and low-sulfur oil.

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