House Speaker Shap Smith says the state should consider purchasing the hydroelectric dams on the Connecticut River that TransCanada is selling.
Smith said the state should explore the option because the dams could be a valuable renewable energy and economic development resource for the state.
“It’s the cheapest power out there, the assets are already in place, and I think it has some real opportunities,” Smith said.
“We just learned the other day the dams were for sale,” Smith said. “I believe it was a real lost opportunity last time that we chose not to buy these dams. I think we ought to take a closer look at it.”
The state considered purchasing the dams twice before — in 2006 before TransCanada bought the assets and in 1997.
Smith said he is meeting with Gov. Peter Shumlin and State Treasurer Beth Pearce about exploring the idea. Shumlin’s spokesman Scott Coriell said the governor supports looking into the possibility.
“We’re open to it,” Coriell said. “We’re interested, but there are a lot of unanswered questions at this point.”
Some of those questions include how much TransCanada is asking for the dams; what would be involved in a potential sale; and whether the company, based in Calgary, Alberta, already has a buyer.
Smith said he didn’t know if there might be some agreement already between TransCanada and another entity. But, he said, “I think it’s important for us to acknowledge these are assets that are likely to be attractive and so we want to move quickly to try to move forward and find out if it’s something we could do.”
TransCanada Hydro Northeast is selling the dams as part of an effort to leverage assets for the purchase of Columbia Pipeline Group. The dams include those at Wilder, Bellows Falls and Vernon.
Although the state would have to bond to purchase the dams, Smith said it’s worth looking into what the financing would entail.
Smith said Vermont could set up a power authority similar to one in New York state for management of the dams.
“I don’t think it would be unlike municipal ownership of generating assets,” Smith said. “You’d likely set up an authority that would manage the ownership of the dams. Whether the authority would have employees that would run the dams or whether that would be contracted out I think would be an open question, but it would be an asset of a state entity that could ensure that we have a clean energy portfolio and that is something that we could possibly use to have low rates for Vermonters.”
If the state pursued purchase of the dams, the Legislature would need to create enabling statutes to set up a power authority and grant bonding authority. Smith said if the state did move ahead with buying the assets and a deal was struck after the legislative session lets out in May, he would entertain holding a special session.
In a comment on VTDigger, former Gov. Howard Dean said he opposed the purchase in 1997 when then-House Speaker Michael Obuchowski suggested it, but now he supports the idea. “Despite the huge price tag I now think we should take a serious look at buying these dams for the green power and for good environmental management,” Dean wrote.
