VCE Weekly Update

Consider the Road Not Taken

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

VCE Anniversary

The one year anniversary of the founding of Vermonters for a Clean Environment, May 26, saw news about...

...concerns about over-dependence on natural gas electricity generation.
...the soaring price of natural gas.
...the lack of need for new natural gas pipelines in New England and higher prices for New England consumers if natural gas replaces oil.

The information contained in these news stories provides evidence to support VCE's contention that siting natural gas power plants and pipelines in Vermont requires a thorough study of all the ramifications of such a proposal. We can be carried along with the herd, or consider the road not taken.

1. Over-dependence: Senator Pete Domenici, [R-NM] warned the Senate Natural Resources and Energy Committee against over-reliance on natural gas for new electric generation, to the exclusion of other sources. He cautioned that the U.S. could be heading towards an energy crisis in 10 to 20 years if, as projected, 85% to 92% of all new generation is fueled by natural gas.

» Senator Cautions Against Too Much Gas Reliance, May 26, 2000:

Some Capitol Hill lawmakers and energy experts believe the United States may be setting itself up for another energy crisis 10 to 20 years down the road by relying too heavily on natural gas to fuel new power generation facilities.*

2. Soaring Price: The futures contract for June delivery of natural gas rose to an all-time high.

gas futures graph

» Futures Set Record Final Settlement Price, May 26, 2000:

In what has become almost routine, natural gas futures coasted to another sizeable gain Friday as traders bid up the June contract in an expiration-day buying frenzy. With no fresh news in which to sink their teeth, traders were content to cite concerns that storage is growing at too slow a pace to match predicted demand levels, both this summer and next winter. Becoming the first contract to post a final settlement above $4.00, the June contract notched an impressive 17-cent gain to settle at $4.406 after peaking at $4.50 during a volatile final 30 minutes of trading.*

3. Lack of Need: A government analysis was released that found that the strategy to replace oil with natural gas in the Northeast will likely result in higher costs for consumers and increase volatility in all fuel markets.

» More Northeast Pipes Not the Solution, EIA Says, May 25, 2000:

Building more greenfield natural gas pipelines to the Northeast is not the answer. In fact, massive switching from distillate oil to natural gas will not protect the region's energy customers from a repeat of the heating oil price shocks that they experienced earlier this year. If anything, it could aggravate prices not only for distillate oil but for gas, the Energy Information Administration (EIA) said in a report issued yesterday.*

* news items from new web site: www.intelligencepress.com

Bennington Selectboard Delays Change to Town Plan

Approximately 20 residents from Bennington County attended May 23rd's Selectboard meeting in Bennington to request that the Selectboard reverse the change to the town plan that was made at the request of power plant developer Tom Macaulay. One portion of the proposed power plant site, the Jard Site, is zoned Village Residential, and Vermont Energy Park Holdings requested that the parcel be zoned Industrial.

VCE provided facts and information to show that:

the change was requested by VEPH/Tom Macaulay,
the town is a party to an active agreement with VEPH/Bennington Energy Park through Dec. 31, 2000,
the zoning change is being made at the request of the gas pipeline [sic].

VCE worked with Bennington residents to prepare a map of the power plant site surroundings, including schools, Veterans home, and recreation areas. After lengthy debate, the Selectboard voted unanimously to delay acceptance of the Town Plan until the ramifications of the proposed zoning change as they relate to the power plant could be explored. After citizens left the meeting, the Selectboard closed discussion on the Town Plan. They intend to vote on the Town Plan at their next meeting on June 13.

What can YOU do?
Support VCE in their continuing efforts to give you pertinent and accurate information about the natural gas pipeline and electric power plant project.
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Thank You