New MIT Power Plant May Cause Price Hike

MIT's $37 million power plant slated for completion in 1995 may drain revenues from Cambridge Electric and provoke a raise in rates for the rest of the city.

The MIT Cogeneration Project will replace an oil-burning power plant with a more efficient source of energy powered by gas. The plant will cut MIT's air pollutant emissions nearly in half, according to Robert P. Suduiko, assistant to the president for government and community relations at MIT.

But with the new plant, MIT will draw only 25 percent of its current level of electricity from Cambridge Electric. City Councillor Sheila T. Russell said the utility company's losses could mean a price hike for its customers, which include Harvard University.

"My main concern is about the ratepayers of the city," Russell said. "If the cost of electricity went up, [it] would be borne by [them]."

David F. Desroches, Cambridge Electric's district manager, would not comment last night on any possible rate increase.

"To make a blanket statement [that rates would rise] would not be accurate," he said.

"They haven't officially notified us that they are planning to go through with the plant," Desroches said.

But Suduiko said that MIT's plans for the new plant "are firm." The school plans to begin construction in April.

Investment for Cambridge

According to a report from the Office of the President at MIT, the plant will ultimately save the city an estimated $15 billion in environmental cleanup costs over the next 25 years.

"We look at this as an investment in the future for MIT and for the city," said Suduiko.