VCE Weekly Update

Reality Check

by Annette Smith (Executive Director of Vermonters for a Clean Environment, Inc.)

Local News

There were several articles in local newspapers, the Bennington Banner and the Rutland Herald, last week about the status of the natural gas power plant and pipeline project:

Southern Vermont Natural Gas said the company was still actively seeking investors in hopes of applying for permits next fall. Bruce Roloson of SVNG stated that "the company intends to build the plants exactly as proposed. There's no change in what we're doing with the project."
Tom Macaulay, power plant developer of Vermont Energy Park Holdings, said "We're interviewing candidates for equity partners on the project. It all depends on how long it takes to transact." "We have had no conversations with anybody about having anything but the line that comes up from Manchester."
Commissioner of Public Service Richard Sedano said "we know absolutely nothing about the current projects."
Ken Horseman, spokesman for the Vermont Economic Development Commission, said in the Bennington Banner, April 20, "I know that the governor remains very, very interested in making something that would be acceptable to all the parties come to pass. It would be a positive economic infrastructure tool here in Vermont." But on April 21, the Bennington Banner said of the governor, "Where he stands now is unclear. Members of his staff have said he supports natural gas as a means to development, but stopped short of saying whether he endorses the project."

National News

The Florida Supreme Court handed down a significant decision on Thursday, April 20 that impacts 19 proposals to build merchant power plants in Florida. The court said that under existing law, only Florida companies that can prove there is a clear demand for more electricity can build new generating units. "The law, which protects the state's power monopolies, also goes back to a time when people didn't want power plants belching out pollution to make electricity that would be sold to other states. It also protects against overbuilding, which can lead to higher rates." -- Miami Herald. Florida's Governor Jeb Bush is contemplating establishing a committee by executive order to study energy policy.

Vermont News

Vermont's power-plant law, Act 248, contains the same clause requiring proposals to demonstrate "need" that cannot be met by energy conservation or cost-saving measures. An attempt to amend Act 248 to facilitate the siting of merchant power plants in Vermont, H.816, was introduced last year into Vermont's legislature and testimony was heard in the House Commerce Committee this year, but thanks to the efforts of VCE, the bill has not been voted out of committee.

Gov. Howard Dean is about to sign an executive order in Vermont that would establish a committee to ensure Vermont's clean air. VCE expects that it will have representation on this committee.

Power Plant News

The March/April 2000 issue of Power Magazine contains a Special Report on gas turbines. The article notes that "advances in combined-cycle technology -- such as steam-cooled gas turbines and once-through Heat Recovery Steam Generators -- fuel explosive growth in new construction. But equipment backlogs, startup delays, and life-cycle costs are growing too, trying the patience of users and insurance carriers."

"The explosive growth in new construction is straining gas turbine manufacturing lines, and is causing backlogs to balloon for the big three original equipment manufacturers."

"Another concern is the capital cost of gas turbines, which is rising substantially in response to supply and demand. A few years ago, you could snap up an F-class unit for around $24-million; today's price is $40-million, according to one project developer, and going higher."

"While reserving your place in the queue and financing a new gas turbine can heat up the bankers, getting the machine to successfully start up and operate can cause the engineers to boil over. Commissioning delays and catastrophic failures of advanced gas turbines have affected all three major original equipment manufacturers."

Vermonters for a Clean Environment will continue to monitor the issues and promoters of this massive energy project. While developers seem to defy reality by continuing to pursue their unwelcome plans for our neighborhoods, we must be realistic that we are dealing with multi-billion dollar companies with long-term agendas to make large profits.

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