This Holiday, New Hampshire Will Buy a $128 Million Lump of Coal

Dec 18, 2012 by  | Bio |  Leave a Comment

photo credit: TimothyJ/flickr

Today, the New Hampshire Public Utilities Commission takes up PSNH’s request to charge its customers 9.54 cents per kilowatt hour for electric energy service in 2013. In a op-ed published this week, long-time CLF friends Ken Colburn and Rick Russman explain why New Hampshire’s crisis of escalating PSNH rates – and how New Hampshire policymakers resolve it – may be the defining economic issue for New Hampshire’s new class of leaders next year.

With PSNH’s rates to be by far the highest in the state and almost three cents higher than those of its sister utility NSTAR in Massachusetts, New Hampshire is dealing with an untenable situation: small businesses and residents are subsidizing PSNH’s above-market costs to operate and maintain dirty, inefficient, and uneconomic coal plants, to the tune of $128 million.* The average residential customer will pay $212 extra in 2013 for the dirtiest energy in the region.

To put $128 million in perspective, in 2011 New Hampshire invested less than a seventh of that amount, a mere $17.6 million, in electric energy efficiency programs – an energy solution that is lowering rates, reducing pollution, avoiding expensive new transmission projects, and creating jobs.

New Hampshire energy users are in effect giving this money away to keep alive New Hampshire’s biggest sources of toxic and greenhouse gas pollution (even though PSNH projects they will only operate at around 25% of their capacity in 2013) and to pay dividends to PSNH’s owner, New England mega-utility Northeast Utilities. And the situation will only get worse with time as PSNH customers join the thousands who have already picked an alternative energy supplier, leaving a shrinking base of customers to bear the heavy costs of PSNH’s coal fleet. (If you’re still a PSNH customer, you should definitely make the switch before the new year begins and PSNH’s new rates kick in.)

The blame for this economic and environmental travesty lies squarely with PSNH’s self-serving failure to plan for the future.

Yet PSNH is already trying to make the case that it needs a “fix” from the New Hampshire legislature to protect its coal plants, its 10% profit margin guarantee, and its protection from cleaner, cheaper competition. What’s even more bizarre – and indicative of its refusal to approach these issues honestly – is that PSNH is pinning its skyrocketing rates on the very factors that have reduced electric rates for everyone else in New England – namely, investments in energy efficiency and environmental protection and the increasing use of natural gas and competitive renewable energy sources. PSNH’s foolhardy but lucrative investments in its outdated power plants – for which it fought tooth and nail over the last decade – are the culprit, not environmental requirements that apply to all power plants in New Hampshire and across the region.

Please take a moment to read the op-ed and share widely with friends, neighbors, and especially your new representatives in Concord. For the good of the state’s economic and environmental health, they need to hear from you!

*  The math: PSNH customers will pay a 2.85 cent “premium” for every kilowatt hour over and above PSNH affiliate NSTAR’s market-based rates, and PSNH is projecting that it will sell more than 4 billion kilowatt hours of power to its remaining customers in 2013. The average household in New Hampshire uses 7,428 kilowatt hours per year.

PSNH's Merrimack Station

Storm Clouds Gather Over Brayton Point

Dec 14, 2012 by  | Bio |  Leave a Comment

Frank C. Grace, www.trigphotography.com

Frank C. Grace, www.trigphotography.com

Coal-fired power is dying, not only across the nation, but across New England as well.  The region’s coal-fired power plant fleet has started to succumb to the costs of operating a coal-fired dinosaur in the age of energy efficiency, growing renewable electricity generation, and–for now–low natural gas prices.

Predominantly coal-fired Brayton Point Station in Somerset, Massachusetts, is the state’s largest single source of carbon emissions (producing over 6 million tons in 2010). Another harmful pollutant emitted by Brayton Point is particulate matter, which is measured daily by monitors that continuously check the opacity of the soot coming out of the plant’s smokestack. Brayton has been violating their limits for emitting that soot, and failing to monitor their emissions of several other harmful pollutants. Yesterday, CLF filed a notice of intent to sue Brayton’s current owners, Dominion Resources, for those violations. CLF’s upcoming lawsuit is just the latest in a growing list of bad news for Dominion and Brayton Point.

As New England’s other coal plants started to close or teeter on the edge of closure, Brayton Point Station was expected to be the last coal plant standing in the region. It is New England’s largest coal-fired power plant, and in the past decade its current owners, Dominion Resources, sank over $1 billion in pollution control upgrades into the behemoth. While Brayton Point does not have the kind of legal protection from market realities that PSNH exploits to prop up its dirty old coal generation in New Hampshire, many had assumed that Brayton Point was well-positioned to survive in the changing power generation landscape.

source: EPA and ISO-NE data

But the relentless pressure of low natural gas prices and the costs of starting up and operating an enormous coal-fired power plant have begun to affect every corner of the coal generation market in New England, and Brayton Point has not been spared. The plant’s “capacity factor,” which reflects the amount of power the plant generated compared to the amount of power it could have generated if used to its full potential, has taken a nosedive over the past three years. A plummeting capacity factor means that it is a better economic choice for a plant’s owners to keep it idle most of the time than to operate.

Dominion Resources, clearly, has seen the writing on the wall for coal in New England. After signing a binding agreement to cease coal operations at Salem Harbor Station as a result of CLF’s lawsuit against that plant, Dominion sold the Salem plant earlier this year. Following closely on the heels of the Salem sale, the company put Brayton Point on the market in September. While Dominion is marketing Brayton as a modern coal-fired power plant due to its recent billion-dollar pollution control investments, UBS recently assessed [PDF] the value of those investments (and the plant itself) at zero.

Brayton Point’s plummeting capacity factor and bleak sale prospects reflect both the current power of low natural gas prices and the weakness of these old, out-dated coal plants.  That trend will continue as the New England energy market continues to move forward with better integration of efficiency, conservation and renewable generation. Dark clouds are rising over Brayton Point. In the meantime, CLF and our partners will work diligently to hold the Brayton Point power plant accountable for producing its own dark clouds of pollution in violation of the law.

Distributed Generation Standard Contracts Act: A Success in Three Parts

Dec 13, 2012 by  | Bio |  Leave a Comment

On June 26, 2011, Governor Chafee signed into law the “Distributed Generation Standard Contracts Act.”  The bill had passed both houses of the General Assembly unanimously. The “distributed generation” in the title of the law refers to small, local renewable energy projects.

The new law was designed to do three things: (1) increase the number of small renewable energy projects that are built in Rhode Island; by (2) making it easier, quicker, and cheaper for developers of these projects to get contracts to sell their electricity to Rhode Island’s dominant utility, National Grid; and (3) get those renewable energy projects distributed into more of Rhode Island’s cities and towns.

Not every law passed by the General Assembly works out the way it was meant to, but the Distributed Generation Standard Contracts Act has been phenomenally successful in accomplishing each of its three goals.

Previous renewable energy laws in Rhode Island have worked the way they were intended: to get National Grid to buy more and more of its electricity each year from clean, renewable energy sources. But Rhode Island’s previous renewable energy laws also had a significant flaw: they worked very well for big projects, like Deepwater Wind’s proposed offshore wind farm, but they worked less well for small projects (like a town that wants to set up a single wind turbine at its town hall, as Portsmouth did). That is because under the prior laws, developers would have to hire a small army of lawyers to negotiate an excruciatingly long, detailed contract with Grid, setting forth everything from the price of the electricity to delivery schedule. (For example, the contract that Deepwater filed with the Public Utilities Commission on December 10, 2009 ran 62 pages in length!)  Hiring lawyers to negotiate a 62-page contract was just too time-consuming and expensive for a developer who had a small project.

The new law fixed that problem. As the name of the law suggests, it provided for a “standard contract” for developers of small projects. The standard contract was short, written in plain English, and easy to understand. In addition, the law provided for a standard price to be paid, and established a mechanism for setting a fair price for each different type of project – wind, solar, and so forth. These prices were designed to be high enough to get projects actually built, but low enough to protect electricity rate-payers.

And that is exactly how the new law has worked. In the 15 months since the bill was signed into law, National Grid has held three separate sign-up periods. To date, 18 separate projects have been signed up.  Each of these 18 separate projects will be built right here in Rhode Island. Thus, Rhode Islanders will directly enjoy the environmental and economic-development benefits of these projects. The main purpose of the new law, to get more local renewable energy projects built, has been accomplished – in spades.

The developer of each of these 18 projects got a simple, standard contract to sign, and will receive a set price for the electricity produced.  Thus, another one of the law’s purposes has been accomplished.

The projects themselves are located in Providence, East Providence, Portsmouth, Lincoln, Westerly, Bristol, West Greenwich, East Greenwich, Hopkinton, Middletown, Cumberland, North Kingstown, North Smithfield, and West Warwick.  This geographical distribution of new renewable energy projects was a third purpose of the law.

Rhode Island’s new Distributed Generation Standard Contracts Act has been so successful that it is becoming a model for the rest of the country. Renewable energy advocates in New York and Iowa are hoping to replicate the Rhode Island law in their states. The California Public Utilities Commission has circulated the Rhode Island law to its in-house legal staff. A group of Oregon legislators is poised to introduce a bill in the coming legislative session modeled after the successful Rhode Island law.

The Distributed Generation Standard Contracts Act is a classic win-win. It addresses the problem of climate change by reducing the carbon emissions that cause climate change. And it helps the Rhode Island economy by facilitating local development of renewable energy projects.

This is a law that Rhode Islanders can be proud of. Its enactment reflects well on our legislators (who passed it unanimously) and on Governor Chafee (who signed it into law). The law has been administered carefully and diligently by our Office of Energy Resources. And National Grid, which receives an economic incentive when projects start producing power, has worked conscientiously with developers to help developers succeed.

Bright Energy Forecast: Saving Electricity, Reducing Pollution, Saving Money

Dec 12, 2012 by  | Bio |  Leave a Comment

For decades Conservation Law Foundation has pushed for more energy efficiency, which continues to be the lowest cost, cleanest and most reliable way to meet power needs. More energy efficiency means fewer dirty coal plants, fewer monstrous transmission lines, and more money in our pockets. We all win.

The operators of the New England Power grid, the ISO-New England, released their energy-efficiency forecast. The news is pretty remarkable.  It shows the real effect of our commitment to energy efficiency. You can read the report here.

In states like Vermont, efficiency will more than offset expected growth and allow older and dirtier supplies to step aside.

 

By comparison New Hampshire, which has not invested as much in efficiency, continues to grow its power use and continues to pay too much for ever more polluting power supplies.

In the words of the ISO New England, the energy efficiency forecast shows the states’ investment in energy efficiency is having a significant impact on electric energy consumption and peak demand. About $260 million in transmission expenses have already been deferred for New England customers. (p.23).

That’s $260 million in our pockets.

What’s also important is that these are very conservative numbers: if states like Massachusetts and Rhode Island meet their goals for helping customers to save energy and money the reductions in energy use will exceed what the ISO is presenting.

This report shows that investments in electricity efficiency are really paying off – we need to apply the lessons from that sector to other areas, like ensuring we use natural gas and oil very efficiently as well, saving customers money while reducing pollution and fuel imports.

More savings are available. Some states are not making as large investments in energy efficiency as others. New Hampshire for example is causing its citizens to experience unnecessarily high costs.

It is good to see the bright payoff from what are only the beginnings of our efficiency investments.

 

 

 

 

Why We Need to Repair and Maximize the Efficiency of Our Existing Natural Gas System Before Looking to Expand

Dec 7, 2012 by  | Bio |  Leave a Comment

As the exuberance for “cheap, domestic” natural gas has heightened, so has pressure to build new pipelines and power plants.  Often lost in the frenzy, however, is the sobering reality that our existing natural gas infrastructure is in need of some serious care and attention.  A recent study highlighted the fact that the pipelines that deliver gas to our homes and businesses are riddled with thousands of leaks.  A large number of those leaks can be blamed on a system that still includes significant amounts of cast iron–some of which dates back to the 1830s.

Explosions in Philadelphia and Allentown, Pennsylvania in 2011 as well as a 2009 explosion in Gloucester, MA were traced to aging cast iron.  Coupled with the massive San Bruno explosion, the issue spurred the U.S. Department of Transportation to issue a “Call to Action” urging regulators and pipeline operators to accelerate the repair and replacement of high risk pipe.  Given this sense of urgency, the estimated timelines for replacement seem interminably long:

  •  81% of the remaining cast iron is buried in only 10 states:
State
Miles of
Cast/Wrought
Iron Mains (2011)
New Jersey
5,138
New York
4,541
Massachusetts
3,901
Pennsylvania
3,260
Michigan
3,153
Illinois
1,832
Connecticut
1,509
Maryland
1,422
Alabama
1,416
Missouri
1,180
  • Of these states, seven have implemented programs with deadlines for complete replacement:
  • New Jersey – 2035; New York – 2090; Pennsylvania – 2111; Michigan – 2040; Illinois – 2031; Alabama – 2040; Connecticut – 2080; Missouri – 2059.

Really? Decades to get the job done, at best?  And about a century to fully “modernize” pipes in some states? Sad, but true.

Though public safety is the primary driver behind pipe replacement and repair, whether the natural gas industry ultimately delivers on its claims for being less damaging to the climate than oil or coal depends on how well natural gas infrastructure addresses leaks.  In addition, those who are clamoring to blindly forge ahead expanding new natural gas infrastructure before we’ve fully assessed the condition of our current system would do well to remember the lessons that New England has already learned so well about the financial and environmental benefits of looking to efficiency first.  Not only is investment in new pipelines and power plants expensive, but it comes with serious and lasting environmental consequences whose costs are too often discounted or ignored.  Why not maximize opportunities for operating the existing natural gas system more efficiently first, before building (and paying for) more?

Despite the fact that we know natural gas prices are predictably volatile, several states have begun to take action to lock energy customers into long-term commitments to buy natural gas-fired power, thus locking them into paying for the fuel even when the price spikes.  For example, here in Massachusetts, one legislator has championed the idea of providing 10-20 year long term contracts for a new natural gas plant.  The problem with signing a long-term contract for electricity from gas is that while customers benefit when the cost of gas is low, they suffer when the price spikes, as it inevitably does.  That’s notably different from long-term contracts for renewable energy which typically have a guaranteed, fixed price.

Proposals for new massive interstate pipelines are in the works as well.  Spectra, a Houston-based natural gas pipeline company is proposing a $500 million expansion for Massachusetts. And all the lines on the map for proposed expansions of pipeline leading from the Marcellus Shale to the Northeast rival the Griswold Family Christmas lights display.

Before we spend billions on new infrastructure chasing the next gold rush, we must repair and rebuild our existing infrastructure and examine the tried and true tool of efficiency.   A recent study on the potential for natural gas efficiency in Massachusetts showed that efficiency could reduce winter electric demand enough to support the increased use of gas on the system without building new infrastructure:

The Benefits of Energy Efficiency

From Jonathan Peress's presentation at the Restructuring Roundtable on June 15, 2012

 

But there is a risk that regulators will not fully take these very real benefits into account as they review and approve the latest energy efficiency plans.  Indeed, traditional energy efficiency naysayers are using the low price of gas as an excuse to call for reduced investment in efficiency.

The bottom line is that natural gas does have a role in our energy future, but it  is one that must be carefully managed and minimized over time if we are to have any hope of averting climate catastrophe.  In the meantime, before we jump to expand new natural gas infrastructure, we need to look closely at what we already have in the ground and apply the lessons we’ve learned about efficiency.

 

 

 

An Electricity Supply Tutorial And Maine’s New Green Power Option

Dec 7, 2012 by  | Bio |  3 Comment »

Mainers have recently been seeing and hearing advertisements for alternatives to the standard offer electricity supply that most residential customers receive through their transmission and distribution (T&D) utility. I’ve been ask numerous times to explain the meaning of these new alternatives. This post is written as a guide to that very question.

In Maine, the majority of customers are served by three investor-owned transmission and distribution utilities: Central Maine Power, Bangor Hydro-Electric Company, and Maine Public Service Company. These T&D utilities maintain the transmission lines and related equipment to carry electricity throughout the grid. Prior to 2000, these same utilities also generated electricity.

In 1997, in response to federal changes that decoupled or split generation from transmission, the Maine legislature passed a law requiring that electric utilities divest their generation assets. Additionally, as of March 1, 2000, all Maine consumers had the right to purchase generation service directly from competitive electricity suppliers.

Until recently, however, there have been few options for residential customers other than the standard offer available through each of the T&D utilities. That, thankfully, is changing.

Recently a number of companies have entered the residential electricy supply market in Maine. They operate by purchasing power on the wholesale market, generally at rates slightly lower than the standard offer rate. The electricity itself is primarily generated by conventional power plants.

Another, greener option on the horizon is Maine Green Power. Maine Green Power is currently pre-enrolling customers who wish to offset their energy supply with renewable energy credits generated by 100% Maine-based renewable energy projects. This offer – of entirely renewable energy – is a first for the state, one that is certain to apply pressure on competing providers.

Maine Green Power’s definition of green power projects is, on the whole, in line with CLF policy priorities and includes solar photovoltaic systems; hydroelectric projects that meet state and local fish passage requirements; wind turbines; biomass facilities that use wood, wood waste, landfill gas or agricultural biogas; tidal power projects; geothermal projects; and fuels cells that use landfill gas or agricultural biogas.

To be clear, the power isn’t purchased directly. When power is generated through the above no- or low-emission sources, Renewable Energy Credits (RECs) are created. RECs are then sold by the green power generators to support their further development. These RECs are what Maine Green Power is purchasing and, in turn, what Maine Green Power’s customers are paying for. By doing so, customers are investing in local renewable energy projects, reducing greenhouse gas emissions, and reducing our society’s reliance on fossil fuels.

Let’s put the cost into perspective. A typical Maine household uses roughly 500 kwh of electricity per month. A 500 kwh “block” of renewable energy can be purchased from Maine Green Power for $7.50 per month (a half block of 250 kwh is available for $3.75/mo.). This charge is paid in addition to the standard offer price for electricity.

That, from my perspective, is an entirely reasonable price to pay for a brighter energy future. In fact, when you factor in the currently externalized costs of climate change and dirty energy to our public health, to our environment, and to our economies and communities, I’d say it’s more than a fair deal.

And so, to return to the original question, what exactly do these alternatives mean for the state? They mean a brighter future.

PSNH’s Coal Plants “Win” a Dirty Dozen Award: Their Dim Future Becoming Clear

Dec 3, 2012 by  | Bio |  2 Comment »

For the past 25 years, Toxics Action Center has been “awarding” New England’s worst polluters with the dubious Dirty Dozen award. This year’s winners were no surprise: PSNH, New Hampshire’s largest electric utility, was on the list once again.

In this year’s annual spotlight on twelve of New England’s worst polluters, PSNH’s largely coal-firing Merrimack Station and Schiller Station power plants earned the award for the millions of pounds of toxic air pollution and greenhouse gases released by the plants. The Dirty Dozen awards are getting lots of press coverage around New Hampshire, and highlight the massive problems PSNH’s coal plants cause New Hampshire residents.

There is good news. Three of New England’s eight coal plants have closed in the past three years, and the rest (including Merrimack and Schiller) should be well on their way thanks to the massive economic inefficiencies of burning coal in the age of cheap natural gas. While these giant, ancient plants were built to run all day, all year round, the reduced demand for coal energy means that plants like Merrimack and Schiller are being used at historically low rates.

While the current cost of energy production at coal plants is staggering, nothing represents the exorbitant costs of coal better than Merrimack Station’s $422 million scrubber project. PSNH is already recovering the cost of that “investment” from its customers with a temporary rate increase, and has requested an even higher permanent rate increase to recover scrubber costs. Installing massively expensive pollution controls on an obsolete coal-fired power plant was recently shown to be a valueless endeavor when the investment firm UBS valued Dominion Energy’s Brayton Point coal plant (currently for sale) as a worthless asset, due to its poor prospects in the New England wholesale electricity market. Dominion has essentially written off its almost $1 billion pollution control investment at Brayton Point, which has little utility to a plant that does not operate due to its high cost to produce electricity in comparison to cleaner sources.  Merrimack Station’s scrubber investment is faring even worse in the market, because the plant is older and less efficient than Brayton Point.  In this regard, Dominion’s write down at Brayton Point foreshadows the future for Merrimack’s “investment.”

As we documented earlier this month, PSNH’s residential and small business energy service customers are abandoning the utility in favor of its competitors at a breakneck pace, following the lead of its medium and large commercial customers and creating an economic “death spiral” as costs climb and customers disappear. And since PSNH is guaranteed a profit by NH law for maintaining and operating its coal plants, the repercussions of the “death spiral” are felt by residential customers, rather than the company’s shareholders.

The residential customers who have not switched to a different energy service provider are projected to subsidize PSNH’s dirty power plants by an estimated $70 million above market rates in 2013. The above-market residential rate payments are then turned into dividends for the shareholders of Northeast Utilities, PSNH’s Connecticut-based parent company.

Northeast Utilities’ dividends are increasing steadily on the backs of New Hampshire ratepayers, and Merrimack and Schiller continue to produce pollution more efficiently than they generate electricity. How long will PSNH be allowed to fleece New Hampshire’s citizens?

 

Co-written with N. Jonathan Peress

Vermont Yankee is in a Tight Box

Nov 30, 2012 by  | Bio |  Leave a Comment

photo courtesy of strikkelist@flickr.com

Regulators issued another strong rebuke to the owners of Vermont Yankee. The Vermont Public Service Board strongly rejected Entergy’s requests to change prior orders. Entergy continues to operate in defiance of Vermont law. Patience with this sort of behavior is wearing thin.  Read the decision here.

Entergy asked to change orders so that it would have authority to operate past March 21, 2012. The Board strongly rejected that request. As the Board’s conclusion states:

For the reasons set out above, the Board denies Entergy VY’s motion to amend Condition 8 of the Sale Order, which prohibited operation of the Vermont Yankee Nuclear Power Station after March 21, 2012, without Board approval and conditions in the Dry Fuel Storage Order and CPG that limit the amount of spent nuclear fuel that Entergy VY may store at the Vernon site to amounts generated from operation up to March 21, 2012.

Entergy knew and agreed to the commitment not to operate after March 2012 and had ample time to challenge or seek amendment earlier. Entergy didn’t.

Instead, Entergy chose to defy the Board’s orders, walk away from its commitments, thumb its nose at Vermont and just continue to operate. It then asked the Board to change the prior orders, claiming hardship and that being held to its prior commitments was somehow unforeseeable.

The Board roundly rejected each of Entergy’s claims. Any hardship is Entergy’s own making based on its own tactical decisions, and does not justify changing the rules after the fact.

Entergy’s in a very tight box. It cannot prove to the Board that it is a trustworthy operator when at the same time it is operating in bold defiance of the same Board’s orders.

 

 

Risky Business: Leaking Natural Gas Infrastructure and How to Fix It

Nov 28, 2012 by  | Bio |  Leave a Comment

On the day after Thanksgiving, an explosion shook the City of Springfield. A natural gas pipeline leak led to the explosion that injured eighteen people and brought down two buildings.  The details behind the cause of this explosion are still being pieced together, but  once again, public confidence has been shaken in the pipeline system that is supposed to transport natural gas safely and reliably to homes, businesses and institutions in communities throughout the nation. Today, CLF is releasing a report on the importance of addressing problems with our aging, leaky natural gas  infrastructure. (You can download a free copy of that report here, and find the press release here.)

In Massachusetts, local distribution companies operate almost 21,000 miles of pipeline—that’s almost enough pipe to encircle the earth. But people seldom give much thought to those pipes that are running beneath their homes, beneath their businesses and beneath their feet.

That has been changing since the explosions that rocked San Bruno, California in 2010 and Allentown, Pennsylvania, in 2011. Shortly afterwards, the Secretary of the Department of Transportation issued a national “Call to Action” to address pipeline safety, but there are still many hurdles to be overcome. One of the toughest obstacles to tackle is the replacement of aging, leak-prone pipelines and the swift repair of leaks on the system. Public safety is the primary driver behind the repair and replacement of aging pipes, but it is also important to recognize the added benefits of reducing greenhouse gas emissions, conserving a valuable resource, and reducing ratepayer costs.

The need for action is particularly acute in Massachusetts where over one-third of the system is considered “leak-prone”—made up of cast iron or unprotected steel pipe. According to the Pipeline and Hazardous Materials Safety Administration, 50% of the cast iron left on the United States distribution system is centered in only four states: Massachusetts, New Jersey, New York and Pennsylvania. Though Massachusetts regulators have been working to find solutions to this problem, there is more to be done.

This infographic underscores the need for additional work in Massachusetts. So significant are the leaks that the gains from efficiency programs put in place by Massachusetts regulators have been overwhelmed by the amount of gas lost through leaky pipes. The costs of those leaks are being borne not by the utilities, or by the regulators, but by consumers. Utilities pass the cost of lost gas onto ratepayers to the tune of $38.8 million a year.

“Fugitive emissions from aging gas pipelines across Massachusetts are polluting our environment – releasing more greenhouse gases than we are saving through all of our energy efficiency efforts,” said D. Michael Langford, national president of the Utility Workers Union of America. “This is problematic for the environment and the economy, but fixing this problem provides an important opportunity. Putting people to work fixing leak-prone pipelines will save Massachusetts ratepayers money by simultaneously modernizing our pipe infrastructure, improving efficiency and helping to protect the environment.”

Fortunately, there are some clear policy options that could be implemented relatively quickly to prevent this valuable resource from endangering the public and vanishing into thin air.  ”The good news is that not only would these policies increase public safety and reduce greenhouse gas emissions, but they also provide an opportunity to create good, local jobs,” according to Cindy Luppi, New England Director of Clean Water Action.  As she points out, “local neighborhoods, as well as first responders, will bear the brunt of impacts if this aging system experiences an explosion.   We hope all public officials will embrace real solutions that value health and safety, ratepayer equity and climate leadership.”

As outlined in our report, Into Thin Air, CLF is advocating for five specific policies to accelerate the replacement of aging pipe and ensure that existing pipeline is properly examined and repaired:

1)    Establishing Leak Classification and Repair Timelines that provide a uniform system for classifying leaks according to level of hazard and require repair within a specified time;

2)    Limiting or Ending Cost Recovery for Lost and Unaccounted for Gas so that companies have an incentive to identify the causes of lost gas and prevent them;

3)    Expanding existing replacement programs and adding performance benchmarks;

4)    Changing Service Quality Standards to include requirements for reducing leaks on the system;

5)    Enhancing monitoring and reporting requirements to give the public and regulators more information.

Over the coming months, we’ll be working with our allies at Clean Water Action and the BlueGreen Alliance to raise public awareness about the need to tackle this issue. We’ll also work with communities to make sure they know how to identify and report gas leaks and talk with them about the benefits of policies that make for a safer, cleaner natural gas system. If you’re interested in joining us, please contact me at scleveland@clf.org.

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