PSNH's Merrimack Station (photo credit: flickr/Jim Richmond)

I appeared on NHPR’s The Exchange with Laura Knoy this morning, and the topic was the potential energy and economic impacts of the Northern Pass project. The show provided a good opportunity to explain why the project is inspiring so much opposition, why CLF has been skeptical of the current proposal, and how Canadian hydropower could play a role in the New England electric system if pursued appropriately. There was also a segment on the project’s potential impact on property values. You can catch the replay here if you’re interested.

Joining me on the show was Julia Frayer, an economist hired by the Public Service Company of New Hampshire (PSNH) to tout the energy and economic benefits of the project. Recently, she penned a widely-reprinted op-ed and provided testimony to the New Hampshire legislature, suggesting the project will be a boon to consumers and the reliability of the electric system.

Unfortunately, and as I made an effort to point out on the show, the arguments for the current proposal are pleasant talking points without much to back them up. All the cited benefits are speculative, rather than firm commitments, and are not forthrightly presented alongside the proposal’s potential costs. As any student of economics can attest, an intelligent discussion about the economics of a project requires that we at least try to describe and compare the costs and benefits.  We know that the project may have significant negative impacts, ranging from the environmental impacts of generating the power in Canada to the potential effects of major new transmission lines on New Hampshire’s tourism and recreation industries. PSNH and the project developer, Northern Pass Transmission, LLC, have stubbornly failed to acknowledge these impacts, and there is no evidence they were taken seriously in the planning of the current proposal.

One point worth highlighting – the current plan calls for all of the supposed clean energy benefits and electric rate reductions to be delivered through the wholesale market, where Hydro-Quebec intends to sell the power delivered by the project.  But these benefits would mostly bypass the very residential ratepayers in New Hampshire who pay PSNH for electricity – because PSNH acquires very little power from the wholesale market. Instead, as customers of PSNH’s retail power, PSNH residential customers have been left to shoulder the uneconomic costs of PSNH operating several coal-fired generating units – and to pay the highest electric rates in New Hampshire as a result. Northern Pass does nothing to change this situation.  Many commercial ratepayers in PSNH territory have “migrated” in increasing numbers to other utilities that – unlike PSNH – do buy substantial power from the wholesale market to supply their customers. Residential ratepayers don’t have this choice – which means they’re saddled with PSNH’s higher costs, as PSNH loses more and more of its commercial rate base.  Again, Northern Pass does nothing to change this situation.  On closer inspection, the claimed benefits for New Hampshire consumers look more like phantom benefits than anything real.

The proposal promises to send huge profits to Hydro-Quebec, as it bids power into the wholesale market (easily paying back its investment in the transmission lines), and to provide a revenue stream of transmission payments to Northeast Utilities, PSNH’s parent company. But this structure makes very little sense because it means New Hampshire residents will continue to bear the burden of high cost power and dirty air from PSNH’s coal plants and will also face the environmental and economic impacts of a massive transmission project, while the power would only displace relatively less-polluting natural gas generation and may undermine the development of local renewable energy projects in the state. If it does indeed lower costs on the New England market, the effect will be to increase costs for PSNH’s residential customers as more large customers migrate to the competitive market and fewer customers are left to pay the costs of PSNH’s expensive coal plants.

The current proposal is coming into focus as a bad energy and economic deal for New Hampshire, and regionally the benefits seem less than impressive – especially because the emissions reductions made possible could be so much greater if there was a firm commitment to pair the new imports with the retirement of coal-fired units. As the project continues to wind its way through the federal and state permitting process, CLF will keep pushing for the project to make sense for New Hampshire and for the energy future of the region as a whole.

For more information about Northern Pass, visit CLF’s Northern Pass Information Center (http://www.clf.org/northernpass) and take a look at our prior Northern Pass posts on CLF Scoop.

Ever buy a furnace? How about a central air conditioning system?

Even if you haven’t you can guess that finding one that is right for your home, your bank account and will not be an energy hog is a tricky business.  Especially if it is wintertime in a cold place and you need to get the heat back on NOW.  And while air conditioning can be a luxury for some of us, imagine if you lived in a hot place and you have a family member with a medical condition who really needs cool and filtered air.

These kinds of examples – and the fact that the ability to shop for these large heating and cooling devices is limited, not to mention the fact that they are often installed by landlords, prior owners and others who don’t end up paying the bills of running them.

Driven by the need to improve the basic efficiency of all furnaces and central air conditioners a group led by the Appliance Standards Awareness Project crafted a set of new standards for these vital machines that were acceptable to environmental and efficiency advocates and to industry.  In a press release the good folks at ASAP summed up this development this way:

A diverse coalition of consumer, manufacturing, and environmental groups praised new energy efficiency standards just released by the U.S. Department of Energy (DOE) establishing the first-ever regional standards for central air conditioners and furnaces, as well as strengthened national standards for heat pumps. The new rules are based on a joint recommendation filed with DOE by the groups in 2009.

“Climates as different as those of Minneapolis and Miami need different furnace and AC standards,” said Andrew deLaski, Executive Director of the Appliance Standards Awareness Project (ASAP). “Until now, we’ve had one-size-fits-all national standards. These new, regional standards are a major breakthrough that will benefit consumers and the environment.”

Once the latest updated standards take effect, a typical new air conditioner in the South will use about 40% less energy, and a typical new furnace in the North will use about 20% less than before national standards were established in the late 1980s. According to DOE’s analysis, the improvements to the air conditioner and heat pump standards announced today will save 156 billion kilowatt hours of electricity over 30 years, or about enough to meet the total electricity needs of all the households in Indiana for three years, while delivering net savings of more than $4.2 billion to U.S. consumers. The new furnace standards will save 31 billion therms of natural gas, or about enough natural gas over 32 years to heat all the homes in New York State for more than 11 years and save consumers $14.5 billion.

While the Federal Government took a ridiculously long time to approve these standards their issuance is still very good news.

For more information check out the ASAP fact sheet on this.  Or if you want the down and dirty details the actual rule is available for light reading.  And if you think this is important then let your voice be heard – the US Department of Energy, in that notice, actively asks for input on the rule saying they may back off from it “if adverse comments are received”.

But hopefully this rule will move forward and the day when all furnaces and central air conditioners are efficient and kind to both our wallets and our environment will arrive sooner than later.

At a time when Maine’s new governor is trying to revive the false choice of business versus the environment, the Oakhurst Dairy company is proving that what’s good for the environment is also good for business.  As shown in this recent article, this family-owned business, based in Portland, ME, is not just talking the talk but walking the walk when it comes to environmentally-conscious businesses.  From committing to selling only artificial growth hormone-free milk to installing solar panels to heat water used to clean milk cases to its delivery fleet of trucks that use biodiesel and aerodynamic skirts to increase fuel efficiency, Oakhurst Dairy has significantly reduced the amount of oil and diesel fuel it otherwise would have used, and in doing so, reaped significant savings.  As one might expect of a company that started 90 years ago as a small dairy in Portland, Oakhurst takes the long view when it comes to how best to keep its niche in the market, and that’s good for Maine.

Photo credit: CLF

For those of you following Maine Governor Paul LePage’s assault on the state’s environmental protections, check out this op-ed by CLF Maine Director Sean Mahoney, which appeared June 3 in the Bangor Daily News. Here, Mahoney rebuffs LePage’s claim that generating more energy from renewable sources in Maine, as required by the state’s Renewable Portfolio Standard, means higher energy prices for Maine consumers, and rejects his so-called “solution,” a bill entitled “Act to Reduce Energy Prices for Maine Consumers.” Want to hear four reasons why LePage’s Act and attitude are bad for Maine? Mahoney has them here. Read more >

With gas prices hovering around $4 a gallon, many New Englanders are rightfully asking why we’re paying so much at the pump. Many economists will point to price speculation and other factors such as political unrest and conflicts in oil producing nations. Oil industry reps have been claiming that high prices are due to all that clean air we use and all those required practices that help keep workers safe. They seem to think our leaders in congress should reduce environmental regulations put in place after the BP oil spill.

The fact of the matter is that domestic production has little to do with the price of oil, which is set on the world market.  In fact last year US oil production reached its highest levels since 2003.

David Koch — a billionaire oilman widely known for funding campaigns to discredit climate science and oppose the construction of clean, renewable wind energy projects—has launched a new campaign through his group “Americans for Prosperity” to convince us that environmental regulations are to blame for high gas prices. Furthermore, they are looking to target political leaders who support tougher safety and environmental reviews for the oil industry that could prevent another catastrophic spill, and the clean energy sources that could break our addiction to their oil.

While most serious economists will tell you that the conflict in Libya, and soaring demand for gas in emerging economies such as China are the key factors driving energy prices up, most serious economists don’t have billions of dollars to spend on massive PR campaigns and secret political donations. As mentioned in this story the Koch brothers are betting that their ad campaigns and political donations will be enough to convince our leaders in congress to ignore real solutions and instead weaken environmental regulations.

Unfortunately, we’re seeing signs that their campaign is working.  As I wrote last week, the US House of Representatives recently passed three bills that would have required massively expanded offshore drilling all around the country, including in New England.  Thankfully, the Senate voted down a similar measure, but oil industry supporters have vowed to keep up the fight. Unfortunately when faced with a decision between big oil and New Englanders who depend on a healthy ocean, Massachusetts Senator Scott Brown sided with big oil. Click here to hear the radio ads CLF is running across the state, and here to write Senator Brown to urge him to stand with us in opposition to expanded drilling and for real solutions to high gas prices.

CLF applauds the balance regulators struck in approving the Kingdom Community Wind Project in Lowell, VT. The order allows the controversial project to move forward while protecting wildlife habitat and ensuring restoration of disturbed areas.  The decision addresses all the concerns that were raised and provides some innovative means to manage the impacts.

All power supplies – including wind – have environmental impacts.   While the environmental harms associated with wind are less than most sources of generation, they need to be minimized and mitigated, not ignored. The Vermont order includes specific requirements from an agreement with Vermont’s Agency of Natural Resources that permanently protects significant habitat and requires re-vegetation and restoration of disturbed areas both after construction and when the project is no longer used.  These measures go a long way to reduce the environmental footprint of the project.  The decision also calls for minimizing lighting while still conforming to FAA requirements.  Overall, the decision can be a model for how projects can move forward while responsibly addressing impacts. 

The project’s benefits are significant and weighed in favor of approval.  Powering 20,000 homes from this project will help Vermont meet it renewable energy goals, create jobs and tax revenue, avoid greenhouse gas emissions, and provide long-term, stably priced power. In an interview with VPR, GMP’s President Mary Powell described the project as, “incredibly cost effective for premium renewable electricity.”

The project, consisting of 20-21 400-foot turbines along 3 miles of Lowell Mountain ridgeline, is expected to break ground in August of this year. The turbines will power an estimated 20,000 households, making it the largest wind site in the state. The project is moving forward with the approval of the Lowell community, who voted in favor of the turbines during Town Meeting Day in 2010.  CLF is excited to support wind projects that bring the community to the table, are responsibly cited, and mitigate the impacts on the environment in exchange for clean, locally produced energy.

Massachusetts Senator Scott Brown has been striking a defensive pose in recent weeks as non-profit groups and the thousands of Massachusetts voters they count as members called him out about his votes on the environment. A new radio ad from CLF and NRDC, launching today in major markets across Massachusetts, asks Brown to explain his latest votes in support of big oil, approving the continuation of huge subsidies for oil companies and opening up New England’s oceans (among other areas) to new offshore drilling. Brown’s rhetoric setting up a false choice between protecting the environment and creating a thriving Massachusetts economy is ringing hollow. We wonder what his response will be this time.

Siding with Big Oil – Senator Scott Brown by conservationlawfoundation

TAKE ACTION NOW! Tell Senator Scott Brown to protect our coasts, not big oil.

Photo credit: Marilyn Humphries

For those of you looking for a good clean-energy read, check out this recent article by Climate Progress’s Stephen Lacey. Lacey focuses on the common myth that clean energy and climate reduction policies will mean higher energy costs for consumers, pointing out that two recently released reports show that the implementation of cleaner, more efficient energy systems will actually save them money in the long run. The same myth has been perpetuated regarding the Regional Greenhouse Gas Initiative (RGGI) here in the Northeast. To debunk that notion, Lacey quotes CLF’s VP for Climate Advocacy and Policy Seth Kaplan:

“The fact is, RGGI is a very, very, very small piece of the overall cost of electricity. There are so many costs that are much greater. Pulling out the cost of RGGI would be like factoring in the cost of mowing the lawn at the power plant or factoring in the property taxes. Some of the claims that groups are making about the cost of the program are patently absurd.”

To hear more from Seth on the subject, read the full article here.

Last Friday, I got a bad taste of life in a changed climate.

After barely sleeping through a night filled with constantly rumbling thunder, hail, whipping winds, and the most incredibly intense rain I have ever seen, my cell phone rang at 4:50 a.m.  The panicked voice on the other end was a friend who owns a downtown business with his wife.  Apologetically, he asked for help.  The Winooski River, which flows through downtown Montpelier, had broken its banks and was creeping toward their shop’s doorstep and they needed help getting merchandise up and out.  We spent a frantic hour packing inventory into cars as the water continued to advance and noisily poured into their basement.  Once they were as prepared as possible, I rushed to join my fellow citizens  helping other businesses as the air filled with the smell of sewage and fuel oil mixing into the river as buildings became inundated.  By 8:00 a.m., I finally got to CLF’s offices where the alarm was sounding to signal that flood waters in the basement were threatening the electricity.  Fortunately, forecasted rain did not fall and the river levels subsided throughout the course of a day that saw most businesses closed.

Though flood waters have receded in the neighborhoods and towns surrounding CLF’s office, reminders of last week’s terrifying deluge abound.  As you walk in the door to our building, a powerful smell of mold and mildew assaults you–a side-effect of our flooded basement.  Downtown dumpsters still overflow with discarded merchandise ruined when floodwaters rushed into low-lying businesses, some of which have yet to reopen.  Some city roads are still washed out and the City’s sewage treatment plant is assessing damage after it was completely underwater much of last Friday.  With the immediate crisis passed and the long recovery beginning, many are starting to ask whether this kind of flooding may be the new normal resulting from climate change.

Flooding at Montpelier's sewage treatment plan resulted in sewage discharges to the Winooski River. City residents await a final estimate of the cost to repair damage to the plant. (Photo credit: Louis Porter)

At this point, I am supposed to offer the obligatory caveat that we cannot measure climate change by any one single weather event.  Sadly, we don’t have to. Extreme weather is becoming the norm–just as so many climate scientists have for so long been predicting that it will.

The flash flooding that wreaked havoc across New England’s north country last week comes on top of earlier spring flooding throughout the Lake Champlain region.  In fact, Burlington, VT has recorded its wettest spring ever in 2011–as have several other parts of the country.  Before flooding came to our neck of the woods, we watched in horror as tornado after tornado flattened parts of the south and midwest.  And before that, all eyes were fixed on deluged areas along the Mississippi.  Just last spring, we were reporting on this blog about horrendous flooding caused by historic rain storms in Rhode Island and elsewhere in southern New England.  After all this, I refuse to believe the climate skeptics who argue that extreme weather has nothing to do with the rising global temperatures that made 2010 the second warmest year on record with the highest carbon output in history, pushing greenhouse gas levels to dangerous new heights.

In this last month, our region and our nation has seen climate change first hand and it sucks.  There’s just no other way to put it.

Politicians talk often about Americans as world leaders.  Unfortunately, when it comes to climate change , we are leaders in polluting the atmosphere with climate-changing greenhouse gases.  It does not have to be this way.

Americans have a choice.  It is up to us to demand that our elected officials like Senators Scott Brown and Kelly Ayotte stop doing the bidding of the mega-billionaire oil barons, coal companies, and their legions of bought-and-paid for climate change deniers while America continues to suffer devastation from climate change that they claim is not happening or is not a problem.  Climate change is happening!  It is harming Americans all across the country–from Barre, VT to Joplin, MO–and undermining the stability upon which our prosperity is based.  The time for action in Washington is long passed.

We can make the changes needed to stave off catastrophic climate change and–like Chicago–adapt to the climate change already happening.  Here in soggy Vermont, there are lots of hurting businesspeople, homeowners, and municipal officials realizing we have no time to waste…