Anticipation had been building on Wednesday for a full-throttled Senate debate on one of the most galvanizing issues of the legislative session: The $21 million CVPS windfall owed to ratepayers once a utility merger with Green Mountain Power is approved.
By the time senators warmed to the debate they had exhausted themselves on the first reading of the budget and a drawn out discussion over a bill allowing police to search information from the state’s prescription drug database without a warrant.
As night fell and tummies rumbled (there was no supper break), the mood darkened and the fractious senators again engaged in the rough and tumble tactics of interruption and parliamentary subterfuge that have been the hallmark of the session.
Lawmakers were divided over whether they should even hear a resolution that would have expressed the General Assembly’s “expectation that the full range of concerns and issues raised by the general public regarding the merger of Central Vermont Public Service Corporation and Green Mountain Power Corporation would be given full consideration and that the final agreement must be in the interests of the ratepayers and the people of Vermont.”
When Senate President Pro Tem John Campbell asked the Senate to take up the proposal, the vote was 11 to 10. The majority wasn’t large enough to suspend the rules in order to debate and vote on the resolution.
Campbell, who appeared somewhat stunned, attempted to suspend the rules again before Lt. Gov. Phil Scott told him that the Senate couldn’t take up the resolution another time.
Later in the evening, the must-pass budget bill became the unusual vehicle for Sen. Peter Galbraith’s utility merger amendment, and is an indication of how broadly supported the measure is among senators. The House of Representatives is waiting on the Big Bill so that a conference committee can be set up and a path to adjournment can be set in place.
Galbraith’s amendment would require the Department of Public Service to reopen the memorandum of understanding between the state and Gaz Metro and renegotiate for direct payment of full amount of windfall-sharing funds to ratepayers. The provision also includes $5,000 for negotiating costs. Lastly, the amendment requires the Public Service Board to only approve the merger of CVPS and Green Mountain Power if the two companies agree to repay $21 million in windfall-sharing proceeds to ratepayers.
Galbraith said all ratepayers would be treated equally and would receive $153 within a 60-day period after the merger is consummated.
“In a summer with record high gas prices and after the Great Recession … the direct refund is going to be a real boost for ratepayers,” Galbraith said. “The key point is, it’s their money.”
The Windham County senator juxtaposed his proposal for a refund to ratepayers with a description of the $18 million compensation packages for CVPS executives should the deal go through.
“Even without the $21 million, stockholders are going to get a very generous premium,” Galbraith said.
Sen. Peg Flory, R-Rutland, then introduced a substitute amendment, identical to Galbraith’s but broken down into three sections, in order to give senators who oppose legislative intervention in an open docket before the Public Service Board the ability to support the portion of the Galbraith amendment that directs the Department of Public Service to renegotiate with the utilities to return the $21 million to ratepayers.
“There are many of us who are really concerned about this $21 million and believe it needs to be returned, but they don’t believe we as legislative body should stick our nose in Public Service Board’s decision-making process,” Flory said. “If we don’t trust them, then we have to say we don’t trust you, and we’ll dismantle you. Let’s not keep second-guessing them. When we do, we pay for it. When we do that we face lawsuits, we face a loss of trust in the system.”
The trifurcated amendment, she said is designed to “get on record you’re going to give the $21 million back or not give the $21 million back.”
“You’re either for the ratepayers, or you’re against the ratepayers,” Flory said.
Campbell spoke at length in favor of the substitute amendment. The Senate leader said he initially thought the offer from Gaz Metro was a good deal for ratepayers, but then he explained that it became clear that the utility’s $21 million investments in weatherization and efficiencies would be recouped from ratepayers, with higher rates. He called the arrangement “ludicrous.”
“We’ve heard … it’ll squirrel the deal,” Campbell said. “If $21 million is going to squirrel a $1 billion deal, then there’s something more wrong with the deal.”
Is it too much to ask, Campbell said, in light of the $18 million in bonuses to executives, for the utilities “to honor their obligation to do the right thing?”
The Senate narrowly voted to accept Flory’s proposal, 15-14.
At this point, the lateness of the evening began to catch up with the Green Room. There was a long and heated debate over protocol. What would they be voting for exactly, if they accepted Flory’s substitute amendment? Could they debate the underlying amendment? Couldn’t they cease debate? (No, not possible, Scott said.) And finally, couldn’t they just adjourn?
The answer to that question was yes and it came at about 8:30 p.m.
To be continued at 8 a.m. Thursday morning.
See page 1126 of the Senate Journal for Galbraith’s amendment. http://www.leg.state.vt.us/docs/2012/journal/sj120425.pdf
Editor’s note: This story was updated between 5 a.m. and 6 a.m.
