State says power needs to remain on at ex-Revel casino

ATLANTIC CITY, N.J. (AP) -- New Jersey authorities say the power needs to stay on at Atlantic City's former Revel casino.

The state Community Affairs Department issued a notice late Wednesday to the power company providing service to the now-vacant building, ordering it not to cut off service again.

ACR Energy Partners has been locked in a dispute with the casino's new owner, Glenn Straub, over the cost of future utility service.

It cut off service on April 9, two days after Straub bought the building. A temporary two-week deal to provide power expired Wednesday, but the state order will keep the lights on in the short term.

Authorities say fire detection and suppression systems need to be continuously powered in the 47-story building, the second-tallest in New Jersey. The fire department says fighting a fire at Revel without electricity to bring firefighters to upper floors, or water in the pipes will be virtually impossible. A red warning beacon atop the building also needs to be lit to keep aircraft from crashing into it at night or in bad weather.

Tim Lowry, a lawyer for ACR, said the company received the notice at the end of the day Wednesday and is weighing a response.

ACR obtained a preliminary court order earlier this year prohibiting Straub from hooking up any alternative source of electricity to the building; a hearing on a permanent order is set for May 26. In the interim, both sides are undergoing mediation in the hope of reaching an agreement on future service to the building.

Straub's lawyer, Stuart Moskovitz told The Associated Press on Thursday that ACR claims to own and operate an energy distribution network inside Revel's infrastructure. Because of that, the state considers ACR to be the "owner" when it comes to fire safety regulations, and ordered the company to keep the power on.

ACR says it needs assurances it will be paid for providing service and paying down the debt from construction of its power plant -- an expense Straub refuses to shoulder.

The standoff is preventing Straub from re-opening at least part of the building for the start of the summer season; Memorial Day weekend is just a week away.

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