Vermont Considers Purchase of Hydroelectric dams

By Eesha Williams on Thursday, April 15, 2004.
listen: Listen with Windows Media Player

Vermont Governor Jim Douglas may soon approve a plan to buy part of a series of electricity-generating dams on the Connecticut and Deerfield rivers.

NHPR correspondent Eesha Williams files this report.

SOUND OF THUNDERING WATER AND HUM OF GENERATORS

WILLIAMS

Visitors to the hydroelectric dam between Walpole, NH and Bellows Falls, Vermont risk getting wet from the giant manmade waterfall's misty plumes.

The sound of falling water almost drowns out the loud hum of three generators that turn the Connecticut River?s energy into electricity.

Seven decades ago, when this dam was built, most people along the Connecticut River thought they'd benefit from the electric power.

And even though locals lost farmland and jobs to make way for the new dams, much of the power generated has been sold in southern New England.

The profits have gone to private companies in Maryland and Massachusetts.

Now, some Vermont lawmakers want to change that.

DARROW

I saw an article in the newspaper that PG&E National Energy Group was going belly-up and was probably going to end up in bankruptcy and the dams were going to be up for sale again. A light bulb immediately went off in my head.

WILLIAMS

Steve Darrow is a Democratic state representative from the river town of Putney, Vermont.

He proposed the legislation that led to the creation last year of a state public power authority that could negotiate for purchase of the dams.

Republican Governor Jim Douglas, appointed the power authority's members.

And it quickly threw a wet towel on the idea of the state owning the dams outright.

Instead, the state is now considering owning a percentage ?probably less than half -- of the dams in partnership with a private company.

Representative Darrow says that?s because the governor is philosophically opposed to public ownership of dams.

SMITH

That?s absolutely false.

WILLIAMS

Mike Smith is chairman of the Vermont Renewable Power Acquisition Authority and Governor Douglas?s Secretary of Administration.

SMITH

The governor said, ?We need to look at this carefully?? The governor supports the direction of this authority?. We?re looking seriously at purchasing a percentage of these facilities.

WILLIAMS [SPEAKING TO SMITH]

What are the odds that the state will own 100 percent of these dams?

SMITH

Well, I think that?s going to be problematic.

WILLIAMS

Smith said the state doesn?t want to be in the business of selling power out of state.

Vermont?s contracts with Entergy Nuclear and Hydro Quebec currently provide two-thirds of Vermont?s power.

Those contracts expire in 2012 and 2016.

Until then, the state may not be able to use all the power the dams generate.

The dams are valued at about $500 million.

They generate power equivalent to a quarter of Vermont?s annual needs.

Mark Sinclair is a spokesman for the Conservation Law Foundation.

The environmental group has lobbied for the removal of some New England dams.

More fish and water birds live in rivers without dams.

But Sinclair says neither his group, nor any other environmental organization has called for removing the dams Vermont is thinking of buying.

SINCLAIR

Every energy source has environmental costs. .....Home-grown, local hydro power makes a lot of sense. These dams are existing, they?re in good shape, they?re environmentally well run, and they provide low-cost power.

WILLIAMS

The Vermont power authority held public hearings last week.

About 60 people attended and most seemed to be in favor of buying the dams.

Jill Neitlich live in Wardsboro, Vermont.

NEITLICH

We should buy the dams because, if we own the dams all the money will stay in Vermont. But if corporations own the dams, they pay federal taxes and profits to shareholders, not to mention exorbitant executive salaries. All that money leaves the state.

WILLIAMS

But several local elected officials spoke against the proposal.

Ron Lamaire is on the selectboard for the town of Searsburg.

LAMAIRE

It might be like when they took over the schools? [funding]. Once the state took over the schools? the taxes have just kept rising and rising, year after year. We?re concerned that the same thing will happen with the hydroelectric plants.

WILLIAMS

A decision on how and if the purchase can go ahead is expected within a few weeks.

For NHPR, this is Eesha Williams in Brattleboro.

Related news:

Monday, July 7, 2008
The New England Forest Rally Comes to NH

Monday, June 30, 2008
Oil Prices Driving Up the Cost of Asphalt

Monday, June 30, 2008
Nashuans Are Not Stepping Up to Pride's Plate

Related shows:

Tuesday, July 8, 2008
Making Money on Web 2.0

Monday, July 7, 2008
Next Green Thing: Comparing the Candidates

Monday, July 7, 2008
Next Green Thing: Denmark Leads The Way To Clean Energy

NPR News