[T]he town of New Haven has reached a multimillion-dollar deal with the developers who want to build a transmission line and converter station to bring renewable energy from New York and Canada to the New England grid.
The deal includes annual payments to the town of $1.4 million and compensation for homeowners whose property values decline as a result of the project.
The transmission cable, dubbed the Vermont Green Line, would originate in Beekmantown, New York, travel under Lake Champlain and end in New Haven, which is close to one of two principal VELCO substations in the state. The three-building facility in New Haven, just off Route 7, would sit on a 60-acre parcel.
The project is still awaiting approval from the town of Ferrisburgh, through which the underground cable would run, and eventually the Public Service Board.
In addition, when the project is completed, National Grid will pay the town $4 million to fund the Fire Department and town Highway Department.
“I think we’ve gone above and beyond what one would find in most energy infrastructure agreements with most communities,” said Joe Rossignoli, director of U.S. business development for National Grid.
Richard Saudek, the attorney who represented the town in the negotiations, said National Grid’s commitment was “higher than any project I’ve been involved in.” Saudek, former chairman of the Public Service Board, has represented numerous towns in negotiation with energy developers.
According to Rossignoli, National Grid, the lender to the project, will convert its debt within the next couple of months and take over from Anbaric. A third partner, Citizens Energy Corp., headed by Joe Kennedy II, has a 10 percent stake in the project and has agreed to use half its profits to help low-income families in communities most affected by the project and throughout the state.
“It could be $20 million over 20 years,” said Brian O’Connor, vice president for public affairs at Citizens Energy. O’Connor and another representative of the company attended Tuesday night’s Selectboard meeting.
However, the project faces a number of uncertainties. Much of the projected power generation would come from a 400-megawatt wind facility in Ellenburg, New York, that has not yet been approved. The transmission lines and converter station must also comply with permit regulations in both New York and Vermont.
“There a lot of moving parts in the project, one of which is the wind farm,” said Saudek.
Rossignoli said the energy supply from the Ellenburg wind farm is “integral” to the company’s offer but that there was some room to maneuver even if it fell through.
“We expect the wind farm to be permitted,” said Rossignoli.
In New Haven, the project has met opposition from some residents concerned particularly about noise from the converter station.
Selectboard member Jim Walsh, who said he invited the representatives of Citizens Energy to the meeting, said their commitment to investing in the communities they operate in was important. “If everything’s done as they’ve said it’s going to be done, it’ll be a positive outcome for the town,” Walsh said.
“We think that it’s an exciting opportunity to be part of a team that’s going to bring clean renewable energy to New England, move us off fossil fuels, create a greener planet while at the same time providing benefits to people of need,” O’Connor said.
In Imperial County in California, Citizens Energy used its reinvestment model to install rooftop solar panels at no cost. According to O’Connor, this cut electricity bills in half for low-income households.
Steve Dupoise, another Selectboard member, said negotiations on the deal were sometimes strained but that the town held its own.
“We ended up with $4 million for a new fire station, new town shed and whatever else,” Dupoise said.
Rossignoli said the developers hope to be in commercial operation by the end of 2020. The Addison County town of Waltham has also endorsed the project, as has Beekmantown, New York. Discussions with Ferrisburgh continue.
