Vermont’s policy on electricity is well established and very clear. It is set forth in The State Energy Plan of 1994, The State Comprehensive Energy plan of 1998, Vermont State Statutes and Public Service Board Rulings.
All these sources stress:
- sustainability
- reliability
- energy efficiency
- environmental protection
- demand reduction
- increasing the use of renewable energy sources
- reducing the use of fossil fuels
It is clear from both current energy projects and the Dept. of Public Service’s (the Dept.) "Final Draft" of the 2004 20 Year Vermont Comprehensive Energy and Electric Plan (The Plan) that Vermont is veering off on a very different course.
The "Final Draft" of The Plan is available on the Dept.’s website http://www.stateofvermont.com/vtlinks.htm. Written by recently appointed regulators and supported by Gov. Douglas, The Plan does not set forth any real plan or vision for Vermont's energy and electric future. However it does point in the direction of President Bush's failed energy bill.
For an idea of what The Plan could and should be, read the documents it is intended to replace - The State Energy Plan of 1994 and The State Comprehensive Energy plan of 1998.
These 2 plans total over 1000 pages.
The new proposed plan is less than 100 pages.
In preparing The Plan the Dept. clearly violated the law in several areas. The most obvious violation being their failure to consult and collaborate with the twelve entities specifically listed in Statute, including the public, the utilities, commericial customers, consumer advocates and the Public Service Board.
If The Plan has any focal point it is how Vermont’s high electric rates are a disincentive to economic development. The Plan acknowledges that Vermont’s high electric rates “in 2002 alone cost Vermont businesses and residential customers $200 million more than had electric rates been at the average U.S. level.” The discussion of how we got locked into these high rates (for years to come) avoids any mention of GMP’s and CVPS’s well established responsibility.
The Plan proposes to lower electric rates with:
- “more advanced decision making tools”. The Econometric Forecasting model described in The Plan is an already tried and failed technique.
- “developing more efficient rate designs". The price of most of our electric supply is locked in by contract for at least the next the next nine years. Changing the rate design is a zero sum game. Lowering the price for one class of customer (business) can only result in higher rates for other customers (residential). This is what The Plan suggests and what the GMP/IBM deal has already accomplished.
- Increasing “regulatory clarity”. Implication: the Public Service Board should not object when GMP and CVPS do something illegal. (Like the illegal commitment to the Hydro Quebec contract.)
- "Alternative performance-based regulation". This has long been in the works, but it's success depends on regulators who will be strong public advocates. The Plan and the Dept. of Public Service's actions in the last year have made it clear that they intend to be industry friendly.
- Making Efficiency Vermont more efficient. Nice idea, Vermont's efficiency program have been very successful at reducing electric useage and growth in demand. However, The Plan generally downplays future efficiency efforts.
Not even mentioned, or only mentioned without any meaningful discussion are:
- The role of energy use in climate change.
- Vermont’s successful Weatherization Program.
- The possible relicensing of Vermont Yankee.
- The possible renewal of the Hydro Quebec contract.
- The possible purchase of the dams on the Conn. and Deerfield Rivers. (Our best chance of lowering electric rates.
- The export of electricity generated in Vermont on wind farms built by “Merchant Generators”.
- The need for new transmission lines in the future.
- Demand Reduction for industry and how it has benefited all ratepayers in the past.
The Dept. should withdraw The Plan Without a Plan and start again from scratch and follow the law and listen to Vermonter's common sense and vision for the future.
Representative Steve Darrow
Home 254-7454
State House 800-322-5616
sdarrow@leg.state.vt.us