Editor’s note: This op-ed is by Burlington patent lawyer James Marc Leas.
Executive Office of Governor Peter Shumlin
109 State Street, Pavilion
Montpelier, VT 05609
Dear Governor Shumlin,
GMP and CVPS have a conflict of interest with regard to contracting for replacement power once Vermont Yankee (VY) closes. GMP and CVPS both have a conflict of interest because the 2002 sale agreement provides that GMP and CVPS get half of all revenue over 6 cents per kWh after 2012. Spokespeople for both companies stated that they want the plant to continue operation [1]. This despite the fact that the plant is aging and defective and that Vermont has undergone a very democratic process, including 51 town meeting votes, the 24-4 Vermont Senate vote, and the election of yourself as governor. Their substantial financial interest in continued operation may be the reason for their moving to overturn democracy and prudence.
But the VY plant can only continue operation if it gets a Certificate of Public Good or an order from a court. Neither is likely if there is no Vermont customer. There will only be a Vermont customer if the Vermont utilities do not contract for replacement power. This may explain why GMP and CVPS have not contracted to fully replace power from VY. Because of their conflict of interest we cannot rely on them to place the contracts or to determine and publicize the facts about available replacement power, such as from the dams on Vermont rivers now owned by TransCanada.
So who can determine the facts? I believe that a high level Vermont state official, like you, can do so.
I had a conversation with a TransCanada executive at the Vermont Expo a number of years ago who said TransCanada would sell the electricity from the dams in Vermont to Vermont customers. The fact that TransCanada is putting announcements on Vermont Public Radio is consistent with their desire to sell electricity to Vermont customers.
You may want to confirm this directly with TransCanada and what the price would be. Also, whether TransCanada could sell directly to IBM without going through its current supplier, Green Mountain Power (also owned by a Canadian company), and thereby avoid their markup. This appears to be a possibility from the TransCanada website.
The table available in this TransCanada document shows that 135 Megawatts of electricity are from TransCanada dams located exclusively in Vermont. 391 more Megawatts are from TransCanada stateline plants shared with New Hampshire.
Here is a link to the information on their hydro plants that deliver 567 Megawatts on rivers in Vermont, New Hampshire, and Massachusetts: http://www.transcanada.com/docs/About_Us/ConnectDeerplant.pdf
Here is a link to how to get a price quote for electricity from TransCanada if you are a commercial customer. http://www.transcanada.com/1830.html
IBM only needs about 35MW. That is less than 10 percent of the 500 MW output available from Vermont waterways. I bring this up because IBM appears to be helping to lead the fight to retain VY.
In view of the invitation to request quotes on their web site, TransCanada is likely to welcome a request for a quote. In view of the 133MW from plants located exclusively in Vermont we could request a quote for at least that amount of power. That would still provide four times the amount IBM uses. You may be able to obtain price quotes for several amounts of power up to and including the 133MW from Vermont’s own waters and higher levels.
I would also note that TransCanada may be using Vermont waters for its power generation with no benefit to the state that is providing the waters. Surely Vermont should be able to provide TransCanada with a substantial fee for the use of its waters for large hydro power generation if TransCanada is not cooperative in providing the power to Vermont customers at a reasonable and acceptable price.
Thanks very much for considering this.
Sincerely,
James Marc Leas
[1] “Some Hold Out Hope Vermont Yankee Can Stay Open,” The Burlington Free Press, December 13, states that CVPS “continues to negotiate a deal on possible future power from the plant.” The article also quotes spokespersons from both CVPS and GMP supporting operation of Vermont Yankee after its 40 year design life comes to an end in 2012.
