Memorandum

112 STATE STREET FAX: (802) 828-2342  1-802 734-8390
MONTPELIER VT 05620-9601 e-mail: vtdps@psd state.vt us
TEL: (802) 828-2811 Internet: http://www.state.vt.us/psd

STATE OF VERMONT DEPARTMENT OF PUBLIC SERVICE

Memorandum

To: Barbara Ripley
From: Richard Sedano
Subject: Natural Gas
Date: July 10, 1998

The governor has asked me to probe a bit on prospects for a natural gas pipeline to be built in southern Vermont. Power generation would also be part of the project, perhaps in two places. There is some very preliminary interest in developing such a set of projects, and the governor would like to increase the odds.

This opens the larger question of whether a natural gas pipeline can be built in Vermont. I think I mentioned this at POETS. We are hearing that it is unreasonably hard to build a pipeline here. We should clarify why we are hearing this and determine if there is anything Vermont can or should do about it. I would like our staffs to have a conversation about this so we can have a common understanding about where we stand. Please let me know if this is OK.

The governor has in mind merging the pipeline construction with expanding Route 7 south of Rutland. I am asking my staff if there are any reasons why this is a non-starter, and perhaps you could do the same? At the appropriate time, if this idea goes anywhere, AOT would need to engage.

At some point, these matters will become a Development Cabinet issue, but I don't want to be premature. Your advice would be helpful.

PS As I complete this, I hear that the developers want to present their project to the PSB on August 7 at 10 AM, so the urgency has increased a notch.

cc: Janet Ancel