A change in the ownership of Vermont’s largest electrical utility and lone gas utility prompted a protest Monday outside Vermont Gas’ South Burlington headquarters.
On Friday, the state Public Utility Commission approved a petition by Canadian investment holding company Noverco to buy out public company Valener. The deal had to go through the PUC because it grants Noverco a 100% stake in both Vermont Gas and Green Mountain Power.
Opponents of the deal say the buyout removes any public ownership of the Vermont utilities. The move has also drawn the ire of environmental activists because one of the primary owners of Noverco is Enbridge, a large Canadian natural gas and oil company that runs a vast extraction operation in the Alberta tar sands.
Under the acquisition, Enbridge’s indirect stake in GMP and Vermont Gas increased from 27.61% to 38.89%. The Quebec pension fund investment manager, Caisse de dépôt et placement du Québec, remains the majority owner of Noverco.
Renaud Faucher, president of Noverco, said at a PUC hearing this summer that the change will give Energir, the parent company of GMP and Vermont Gas, with easier access to capital.
The Department of Public Service, which acts as the public advocate in PUC proceedings, hired ProCom Consulting to help with its review of the acquisition. In prefiled testimony, C.B. Harreld and Leonard Kujawa of ProCom said that while the deal would “simplify the corporate ownership of Energir,” it would not impact the utilities.
The PUC stated in its Friday order that the transaction was in the public good as the commission has previously determined that simplification of an ownership structure can provide increased access to capital.
But the commissioners state that they “remain concerned by the lack of reliable and firm evidence” about potential impacts of the ownership change as neither Caisse nor Enbridge took part in the proceeding.
However, the PUC felt the transaction “will not result in any change to the operations, customer service offerings, or service quality of GMP or Vermont Gas, which will continue to operate as stand-alone companies with Vermont-based management.
The PUC notes that one of the intervenors’ main concerns was that Enbridge would leverage its increased indirect ownership to push for fossil fuel pipelines or more natural gas use in Vermont.
The commissioners say they are not persuaded by that argument because Noverco already had almost a three-quarters ownership stake in the Vermont utilities. They added that Enbridge could seek a fourth seat on the board of directors of Energir and has not chosen to do so.
”If Enbridge had the intention to use its interest in Noverco to interfere with the business of Vermont Gas and GMP it already has, and has had for many years, the ability to do so,” states the decision.
As part of its approval of the acquisition, the PUC did require Noverco to file a notice if Enbridge seeks a fourth seat on Energir’s board.
Kristin Kelly, spokesperson for Green Mountain Power, said that GMP was happy that the PUC agreed that this change would not impact how GMP is run or its commitment to 100% renewability by 2030.
Vermont Gas spokesperson Beth Parent said that while VGS was pleased that the PUC had issued the order, the transaction does not impact the utility’s operations or customers.
“We will continue to operate independently,” she said.
Owen J. McClain, an attorney for Noverco, said in an email, “Noverco appreciates the Vermont Commission’s thorough review of the facts and is glad to have received this final approval for the transaction.”
350Vermont, an environmental group that opposes the transaction, held a protest outside Vermont Gas’ offices in South Burlington Monday afternoon.
Julie Macuga, an “extreme energy organizer” with the group, said the aim of the protest was to make sure members are aware of the change in ownership in Vermont’s utilities, which they feel should have more, not less, public ownership.
“It was really clear that the public didn’t want this,” she said, calling the PUC’s decision “irresponsible.” The commission had received dozens of public comment on the proposal, all except one opposing the deal.
350Vermont and the intervenors in the case, most of whom opposed the Addison County pipeline, are concerned that more pipelines could be built in existing utility corridors.
Vermont Gas has said it has no further plans for additional transmission pipelines. Parent said that the natural gas utility shares the protesters’ goal of fighting climate change.
“We are committed to giving businesses and families the tools they need to achieve the state carbon reduction goals right now and at the same time, maintain the comfort, affordability and reliability that comes with our energy services,” she said.
The acquisition has already been approved by the Federal Energy Regulatory Commission and the Quebec Superior Court.
