Burlington Free Press
July 31, 2007
By Dave Andrus
Major challenges lie ahead for Vermont's electric utilities. The most talked about challenge will be replacing two-thirds of our electric supply between 2012, when Vermont Yankee is scheduled to shut down, and 2015, when the contract with Hydro Quebec ends. A less well-known, but just as important challenge, is the need for reinforcing Vermont's transmissions system to ensure Vermonters continue to have reliable electric service. Without those system reinforcements, it will be almost impossible to either build new power sources in Vermont or import replacement power into the state.
Vermont's current contracts with Hydro Quebec are vitally important to the reliability of Vermont's transmission system. Without those contracts, the state will have to build new transmission lines or build new power plants in the Northwest part of the state. Conservation simply won't get us what we need. Although the state does not consider Hydro Quebec contract power "renewable energy" for the purpose of achieving a goal of 25 percent renewable electricity supplies by 2025, it is still an environmentally clean local resource that should be used.
Vermont Yankee is also a valuable and vitally important resource that should not be wasted. Unlike wind power, Vermont Yankee provides low cost, round-the-clock generation that, when combined with the Hydro Quebec contracts, gives Vermont one of the lowest carbon footprints in the country. Vermont and Entergy Nuclear, the owner of Vermont Yankee, should work together to jointly develop Vermont's future energy plan. The ongoing political battle between the Entergy and Vermont helps no one.
Vermont is also addressing major infrastructure issues in relation to transmission and distribution constraints in the state. Ten areas of the state have been identified as constrained areas and are the subject of investigation. Continued growth in the Northwest region of the state will likely continue to present reliability challenges in the next decade. Utilities within Vermont have also been under pressure from regulatory authorities to reduce their rates. Coupled with the howls from environmental groups whenever any new generation or transmission investments are even mentioned, needed infrastructure investment has been deferred far too long. A long-term integrated generation and transmission plan, based on sound economic principles, is crucial to the long-term viability of the state's electric system and to the Vermont economy.
Vermont's electric utilities have a strong desire to meet an appropriate share of their own needs through sustainable energy sources. Addressing these challenges in a least-cost manner will require the implementation of a coordinated transmission and generation solutions. Developing or investing in other renewable resources, such as wind and biomass are important to support further development of those technologies and to diversify Vermont's generation portfolio. However, to the extent those resources cost more than traditional generation resources, consumers and businesses must be willing -- and able -- to pay the difference.
There needs to be a coordinated and realistic approach to solving Vermont's future power supply situation. That means taking a clear, realistic look at the cost, benefits and risks of Vermont's future power and transmission system options.
Dave Andrus of South Burlington is a management consultant in the electric utility industry.
