VCE Weekly Update

Local, State, National and International Power Plant, Pipeline, Natural Gas and Electricity News

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

Gov. Dean Softens Tone: A "kinder and gentler" Governor Howard Dean expressed acceptance of the opposition to the natural gas power plant and pipeline project proposed for Southwestern Vermont. See "Dean eases up on criticism of Bennington County".

He tied his comments to the realization that the opposition was not necessarily an expression of anti-business sentiment. He went on to add that the values and lifestyle choices expressed by the opposition meant the people of the area were willing to pay higher taxes to preserve what they have. VCE has seen no evidence to support the idea that hosting natural gas power plants and pipelines will lead to lower taxes in the region or that taxes will increase because we don't have them.

The governor also expressed resentment that the developers of the project had not been forthcoming with information. "I feel like I was led down the garden path," he said. Now he knows how people in New York feel. Public outrage at the lack of information provided by these same developers hoping to build a 520 mw natural gas power plant in Glenville, New York are apparently causing Glenville Energy Park to consider hiring a public relations firm.

Do Governor Dean's comments mean the project is over? Unfortunately, no. New Jersey's governor is opposing a pipeline project that is moving forward with Federal approval. Is it more difficult to build power plants without political support? Yes, but that does not seem to discourage the industry from moving forward. Although we are heartened by the governor's comments, we are not so naive as to think that the proponents of this project will not move forward. In fact, they have made it eminently clear that they intend to move forward.

Bennington Town Plan: Changes to Bennington's Town Plan will be voted on by the Selectboard on Tuesday, May 23. Among the changes made to the plan are the rezoning of the Jard Site, at the request of the power plant developers. VCE is working hard to keep the town from making this unnecessary accommodation. Public is welcome, Courthouse, 7:15 p.m.

New York Pipeline Company: The pipeline company proposing to take Vermonters' property by eminent domain for their pipeline, NYSEG/Energy East, held their annual meeting in Connecticut last week. There was no mention of the Vermont project and the governor's withdrawal of support. See "Energy East Highlights 1999 Achievements at Annual Meeting".

"Energy East plans to continue to capture new market opportunities and further expand its customer base by increasing penetration levels and developing new natural gas franchises throughout New England and upstate New York."

Vermont Legislature Adjourns: Last week, Vermont's legislature adjourned until January, 2001. The good news is that thanks to the efforts of VCE, H.816, the addition to Act 248 that would have allowed merchant power plants to be sited in Vermont, died in committee. The bad news is that our elected representatives did nothing to protect Vermont property owners from having their land taken by eminent domain for the siting of natural gas pipelines, without fair compensation. We hope to work to build the necessary support over the summer months and then promote this issue in the upcoming legislative session.

New Hampshire's Legislature is working on deregulating their electricity market, supposedly opening it up to "competition". However, the reality is: "Few companies eager to jump into deregulated electric market". According to the president of Worldenergyexchange.com, a company that lets suppliers bid on potential energy customers ...

"Suppliers are going to be cherry-picking large manufacturers with a heavy demand profile, so that standard offer will only benefit very high-load, large industrial companies. I would find it very hard to believe that any residential customers are going to see competition at that price."

Not Enough Natural Gas Leads to High Prices: For the past year, Vermonters for a Clean Environment has focused on information that suggests that the boom in natural gas power plant construction will lead to short supplies and high prices. Last week, natural gas prices leapt to a 3-year high, and prices are expected to continue climbing as supplies fail to keep up with demand. "U.S. faces tight natural gas supply". According to a report released Friday...

"With current natural gas flows not keeping up with various sources of demand, the U.S. natural gas market remains in an unbalanced state. This situation could deteriorate further as increasing gas-fired power generation demand begins to compete with increasing storage injection demand, possibly triggering severe summer price spikes."

"Natural Gas prices Hit 3-Year High"

"Natural gas prices are up 26 percent in the past two weeks, and 11 percent just since Tuesday."

[For a fairly dramatic display of how natural gas prices have risen over the past months, look at this webpage.]

Costs of Conversions from Oil to Natural Gas far Exceed any Benefit: "Study Finds Conversions to Natural Gas Costly and Ineffective; Federal Policies Would Increase Costs for Northeast Consumers". VCE has been contending with arguments that the availability of natural gas in the region will result in cheaper energy prices. A study released last Wednesday by Charles River Associates, an economic consulting firm, finds:

Such conversions are unnecessary and unproductive.
Their costs will far exceed any potential benefit.
Conversions involve substantial capital costs and increase home energy costs.
Forced conversion of heating oil to natural gas could actually cause prices to spike more often, as occurred in January and February this winter.

According to the study, whose principal author is a former Department of Energy economist, ...

"A governmental policy encouraging the Northeast to convert to natural gas is unnecessary, unproductive and costly, and would likely increase the volatility of both fuels -- hurting, rather than helping, consumers"

Pipeline Through Undisturbed and Ecologically Fragile Rainforest: In international pipeline news, a 650-mile long oil pipeline proposed by Exxon, Chevron, and Petronas oil company, would pass through undisturbed and ecologically fragile rainforest. "Pygmy comes to UK to oppose oil pipe that will rip through his forest". The World Bank's financial support is "seen as vital to gaining acceptance for the scheme, which would be unlikely to go ahead without it." The World Bank agrees that 'the risks are high', but says that its involvement is reducing them."

What can YOU do?
Invest in renewable energy and take responsibility for your electricity.
You can also support Vermonters for a Clean Environment, the group working on your behalf for meeting responsible energy needs.
By participating financially, you too, can be part of the solution.
Please contact us at the address below for more information.