Merrimack Station power plant in Bow, NH. (Photo credit: John Moses)

Today CLF filed a federal Clean Air Act citizen suit in New Hampshire federal district court against Public Service Company of New Hampshire (PSNH), the owner of Merrimack Station power plant for the plant’s repeated failures to obtain required air permits. CLF’s citizen suit also cites numerous violations of Merrimack Station’s current permits and the resulting illegal emissions from the plant.

Merrimack Station  is among the most polluting coal-fired power plants in New England and is the single largest source of greenhouse gas emissions in New Hampshire, releasing over 2 million pounds of toxic chemicals every year. In addition, the plant is causing PSNH’s energy rates (already the highest in New Hampshire) to steadily climb as ratepayers are forced to foot the bill for the above-market cost of keeping PSNH’s old coal plants in operation.

CLF’s complaint contends that the plant, which is more than a half-century old and is in the midst of a major, multi-faceted life extension project, never obtained required permits authorizing renovations to major components of Merrimack Station, including much of an electric-generating turbine, even though the changes increased pollution from the plant.  As predicted by PSNH’s own projections, the changes led to more emissions of pollutants, including smog-causing nitrogen oxide and particulate matter, or soot, which causes respiratory problems when inhaled and is linked to increased hospitalizations, lung damage in infants and children, and premature death.

“In the course of this project, PSNH has repeatedly violated the Clean Air Act, putting the health of the public, especially children and senior citizens, at risk,” said Christophe Courchesne, CLF staff attorney. “PSNH is not above the law and CLF is committed to holding them accountable. With PSNH trumpeting the supposed ‘clean air’ benefits of the Northern Pass project with full-page ads in newspapers across New Hampshire, it is imperative to shine a light on PSNH’s coal plants, which easily cancel out the purported benefits of Northern Pass.” Read more >

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.

A guest blog post from Juliana Kaplan:

As an avid reader of Scholastic’s series The Princess Diaries, let me just tell you one thing about Scholastic’s recent coal product placement: Princess Mia would not like it.

While such products as the Spongebob Squarepants digital monopoly game and Cheerios counting books lining their shelves, Scholastic is no stranger to product placement. But as Scholastic’s recent product placement decisions come to light, many are questioning whether such an educational company should be using these products in their material.

Scholastic’s recent deal with the American Coal Foundation which agreed to sponsor an educational poster called “The United States Of Energy”, which if you asked them, is a purely educational map featuring several sources of energy around the U.S. Of course, one of the extremely highlighted and detailed sections features coal production, and the accompanying teacher’s guide suggests a full class period to learn about the steps of coal production and how it makes electricity. So let’s get this straight: Coal companies are paying Scholastic, which in turn makes coal map and coal lesson. Do you see a common theme here, too?

So here’s where it gets difficult: how much is too much? This is a wide debate, and while many might say “Well, of course, there is a limit.” But when their companies are booming because of product placement, it turns into the sky is the limit. But if we keep pushing the boundaries, keep throwing money at each other, keep turning a blind eye, how far can we push the envelope? Am I supposed to start my college year with English: Brought to you by Microsoft Word ? I was recently watching an episode of iCarly with my little sister, about how the girls are paid to have a subtle product placement in their show, and soon regret it. But I have seen many a Nickelodeon show subtly advertise other shows of Nickelodeon origin. So, while there may be many shocked and dismayed by Scholastic’s map and curriculum, let me just tell you right now: this may just be the beginning.

A very smart man once told me to never spread criticism and attacks accidentally in the name of rebutting them.  But sometimes you just have to do it.

An odd item popped up in the tubes of the interwebs recently - an anonymous essay attributed only to the financial website called “TheStreet.com” that (apparently) was never actually distributed on TheStreet.com but rather was posted and distributed through the MSN Money personal finance and investing website.

(more…)

Today marks the beginning of the end of coal’s dirty energy legacy in New England, as Dominion of Virginia, owner of Salem Harbor Station power plant in Salem, MA confirmed that it will shut down the facility by 2014. Dominion also said that it would shut down two of the 60-year-old plant’s smaller coal units this year.

The announcement ushers in a new era of clean air, clean water and clean energy for the community of Salem, MA, and of New England as a whole. The announcement is monumental  not just for the people of Salem who can now see the end of their long struggle for cleaner air, but for New England as a whole. At last, technology has caught up with these polluting vestiges of the past, making them uneconomic and impractical to run.

Salem was one of the plants targeted by CLF’s Coal-free New England campaign, which aims to shut down the region’s remaining coal-fired power plants and make way for a clean energy future. Earlier this year, CLF was instrumental in the closure of Somerset Station power plant in Somerset, MA. More >

The wait is finally over. There is a clear path to the complete shutdown of Salem Harbor Station by June 1, 2014. Yesterday, ISO-NE presented its preferred option for upgrading the transmission system to relieve any need for the polluting, obsolete, and un-economic coal- and oil-fired plant. The solution is simple, cost-effective, and clean.

Instead of propping up the 60-year-old plant with above-market payments to be on call when electricity demand is highest, a transmission solution would upgrade the lines so they can carry more power into the area. The advantages are clear: by upgrading the transmission infrastructure, ratepayers will reap the benefits of a reliable system for years into the future at much lower cost than continuing to operate an out-of-date plant that emits tons of toxic pollution into the air each year.

The preferred alternative identified by ISO-NE is one of four that it presented in a compliance filing it submitted to FERC in December of 2010. FERC had directed ISO-NE to identify these solutions as the result of a protest lodged by CLF. The presentation yesterday was a result of Dominion’s February 2011 request to retire all four units at Salem Harbor Station. Although ISO-NE determined that Units 3 & 4 may still be necessary for reliability under existing system conditions, it has concluded that the proposed alternative would allow the units to retire without impacting system reliability.

The focus on existing lines, rather than building new ones, would reduce the cost and the timeline for implementation of the solution. CLF is confident that these upgrades can be completed and placed in operation in time to ensure that Salem Harbor Station shuts down no later than 2014, and possibly even earlier. With a confirmed date for shutdown, Salem residents and area ratepayers can better anticipate what’s next for Salem and pursue clean energy alternatives and economic development options now being studied for the site. CLF will work with ISO-NE, the transmission owners, and state agencies to make an expedited shutdown a reality.

Members of Mt. Holyoke's crew team pass Mt. Tom in the early morning.

CLF today announced that it intends to file a federal citizen suit against Mt. Tom Generating Company, FirstLight Power Resources and GDF Suez North America, the owners of Mt. Tom Station, for ongoing violations of the Clean Air Act. Mt. Tom, a 50-year-old coal-fired power plant in Holyoke, MA, is one of the top five sources of toxic emissions in the state, and one of the plants targeted by CLF’s Coal-Free New England campaign.

“The soot Mt. Tom releases contains dangerous pollutants that threaten the health of everyone who breathes them–particularly children and the elderly,” said CLF staff attorney Shanna Cleveland. “Despite recent investments in new technology, this plant is unable to operate in compliance with the law, and therefore within the limits of what is considered safe for human health.” More >

The Federal Energy Regulatory Commission (known as “FERC”) has delivered a clear message: the time to plan for a future without coal is now. This comes in response to a protest submitted in October by CLF that challenged a decision by the New England Independent System Operator (ISO-NE) that could have kept the 60 year old Salem Harbor Station running for years longer, despite the damage it causes to public health and the environment and the huge costs it imposes on ratepayers.

CLF argued that ISO-NE, the overseers of the regional electricity system under FERC’s supervision, should have developed an alternative to retaining units at Salem Harbor Station to meet the area’s reliability need.  CLF therefore asked FERC to step in to expedite the planning process. Today, the FERC issued a decision directing ISO-NE to find a solution that would allow shutdown of the Salem Harbor power plant – a dirty, obsolete and unprofitable plant that has long outlived its lifespan and has requested to leave the market.

“We…order ISO-NE to submit a compliance filing within 60 days that either identifies alternatives to resolve the reliability need for Salem Harbor Units 3 and 4 and the time to implement those solutions, or includes an expedited timeline for identifying and implementing alternatives.”

The news that FERC is mandating action to ensure that this dirty coal plant can retire without impacting reliability is a game changing development of national significance. The Chicken Little warning that old coal is needed to keep the lights on—brandished by coal interests primarily to delay long overdue emissions reductions requirements—simply isn’t true.  Today FERC concurred that the sky will not fall – the lights will not go out without old coal – if we envision a future without it and plan for that future.  That future starts here in New England with a concrete plan and timeline for life without Salem Harbor Station.

Students from the Environmental Law Clinic at Columbia Law School provided excellent research in support of CLF’s filing.

In the wake of Dominion’s announcement that it would not be cost effective to continue to operate and invest additional capital for pollution controls at Salem Harbor Station, the Patrick Administration has sent a message to ISO-NE calling for action.  In a letter to the President of ISO-NE, Secretary of Energy and Environmental Affairs, Ian Bowles, highlighted the need to invest in clean energy instead of propping up old, environmentally obsolete coal plants such as Salem Harbor Station.  Secretary Bowles urged ISO-NE to “quickly implement” a solution to allow Salem Harbor Station to retire.

Clean energy policy has been one of the centerpieces of the Patrick Administration, and this letter signals not only the Administration’s commitment to building clean, new energy infrastructure, but also the important role they have in hastening the retirement of the coal-fired power plants that cause significant damage to public health and the environment.

ISO-NE is responsible for finding an alternative that will remove any need for Salem Harbor Station; however, after 7 years of transmission upgrades and planning, ISO-NE rejected Dominion’s request to remove Salem Harbor Station from the market over concerns that the plant could be needed on the hottest days of the year.  CLF has been pushing ISO-NE to expedite its planning process so that ratepayers will not be forced to bear the costs of keeping this 60 year old coal and oil plant on line despite its continued struggles to meet environmental regulations. 

The Secretary’s letter is particularly timely given that ISO-NE will host meetings on December 15 and December 16 to discuss the planning process for replacing Salem Harbor Station.