New Study: Energy Market Changes Undermine Economic Case for Northern Pass

Jun 14, 2012 by  | Bio |  Leave a Comment

photo credit: flickr/brianjmatis

This week, the New England Power Generators Association (the trade group for most of the region’s power plant companies, also known as NEPGA) released a new study analyzing the potential effect of the Northern Pass project on New England’s energy market – the first independent study addressing this issue. More than two years after the deeply flawed energy study that Northern Pass’s developer commissioned and has cited unrelentingly since, NEPGA’s study is an important, credible contribution to the public discussion surrounding the Northern Pass project.

The new study’s conclusion: the supposed energy benefits of the project – that it will lower the region’s energy costs and diversify the region’s power supply – won’t materialize. The study also shows that the economic merits of the current proposal are much weaker today than they were when the proposal was formulated two years ago, due to reductions in the cost of natural gas.

You can read NEPGA’s press release about the study (PDF) here and the full study (PDF) here. You’ll find press coverage of the study in the Union Leader here, in the Concord Monitor here, on WMUR-TV here, and on New Hampshire Public Radio here.

A few key takeaways:

  • The study’s finding that natural gas prices have declined is not news to Hydro-Québec or to Northern Pass’s developer, which is trumpeting new domestic natural gas supplies as a “game-changer.” What this means, in practical terms, is that the project will not put much downward pressure on the already-low regional market price of power. That’s a problem for Northern Pass: reducing regional energy costs is at the heart of the Northern Pass sales pitch. (As we’ve pointed out before, this “benefit” in fact perversely would put upward pressure on – rather than lower – the rates that most New Hampshire consumers pay.)
  • With the economics of the project so tenuous, there is a clear risk that the proponents will seek to qualify Northern Pass power for the benefits afforded to new renewable energy sources under state clean energy laws, a legal change that would unfairly undermine the market for renewable energy development in New England. (The risk that hydropower imports will need subsidies to cover new transmission costs has also recently been cited by critics of the Champlain Hudson Power Express project in New York.) If it’s true, as proponents insist, that Northern Pass doesn’t need subsidies, New England should accept nothing less than a binding legal commitment from Hydro-Québec and Northern Pass’s developer not to seek or accept them.
  • NEPGA’s study suggests that Northern Pass would shift Québec hydropower exports from New York and Ontario to New England. This effect may completely offset the supposed carbon emissions reductions from Northern Pass (which are inherently dubious for other reasons) because it is extremely likely that New York or Ontario would ramp up natural gas power plants to make up any deficit. In this regard, the study shows yet again that a rigorous big-picture regional analysis – of the kind that could be provided in the comprehensive regional assessment of our energy needs and the role, if any, for more Canadian imports that CLF and others have sought and Northern Pass’s developer has opposed – is essential to making a well-informed decision on a proposal like Northern Pass.
  • The developer’s hair-trigger response – to question the credibility of the sponsors of the study and not the study’s actual findings, a classic Bulverism – speaks volumes. At every turn, the developer has refused to acknowledge or address the problems with its current proposal, even in the face of unequivocal facts that debunk the supposed benefits. Sadly, we can expect the potential rollout of the “new route” for a piece of the project later this summer to follow a similar script.

Above all, NEPGA’s new study underscores that that no one should rely on the stale, incomplete, and misleading information that Northern Pass’s developer is using to sell the project to the public and to government agencies. We need a much deeper, clear-eyed understanding of what Northern Pass would mean for the region’s energy consumers, New Hampshire communities, and the environment on both sides of the border.

For more information about Northern Pass, sign-up for our monthly newsletter Northern Pass Wire, visit CLF’s Northern Pass Information Center (http://www.clf.org/northern-pass), and take a look at our prior Northern Pass posts on CLF Scoop.

Northern Pass Attacks Land Conservation in New Hampshire, Loses in the First Round

Dec 28, 2011 by  | Bio |  1 Comment »

courtesy Society for Protection of New Hampshire Forests

Last week brought a fitting capstone to the botched year-long rollout of the Northern Pass project.  In a disturbing turn of events, the project developers sought to scuttle a historic plan to preserve a storied wilderness in New Hampshire’s North Country. Their attempt failed, but what the episode says about their future tactics is anything but encouraging for New Hampshire and the region.

Northern Pass Transmission, LLC (NPT) – a partnership between Northeast Utilities and NSTAR – has spent 2011:

It has been clear for some time that the current proposal is really about two things – securing profits for Hydro-Québec and propping up NU subsidiary PSNH’s weakening bottom line. CLF is not alone in wondering: what’s in it for New Hampshire?

Last week was a vivid preview. And if you care about New Hampshire’s iconic wilderness landscapes or the organizations that protect them, it’s not a pretty picture.

Earlier this fall, we learned that NPT was bidding to purchase a strip of land through one of the North Country’s crown jewels – the magnificent Balsams estate in Dixville Notch – from its owner, the Neil Tillotson Trust.

Enter the Society for the Protection of New Hampshire Forests (SPNHF), a key collaborator with CLF on Northern Pass advocacy and one of the state’s leading land conservation organizations. Culminating a decade of effort to preserve the Balsams landscape, SPNHF secured from the Trust a conservation easement over 5,800 acres of spectacular wilderness surrounding the resort, provided that SPNHF raises $850,000 for the easement by mid-January. (You can follow the effort here. Word is that, as of today, SPNHF is nearly a third of the way there.) The easement would preclude any transmission corridor.

The land is an ecological and scenic marvel, and the deal marks a historic land preservation achievement for SPNHF, the Trust, and New Hampshire as a whole.

The Balsams Resort in winter (photo credit: j-fi/flickr)

NPT’s bizarre and audacious response: launch a legal attack on the conservation plan.

Last week, NPT asked the state Attorney General’s Office to disapprove the easement on the ground that NPT’s earlier bid was higher. Then on Friday of last week, NPT made a very public offer to buy both the transmission corridor and the conservation easement, which would secure a right to site the Northern Pass project on the Balsams property. The last move was particularly odd because most bidding wars don’t involve publicly bullying a seller – a respected charitable trust no less – into accepting an offer.

As noted in the Concord Monitor and on NHPR, news came late Friday afternoon that the state Attorney General’s Office had approved the sale of the conservation easement to SPNHF, despite NPT’s objections and richer offers. The approval letter noted that it was well within the Trust’s charitable purposes and discretion to sell the easement to SPNHF for less than NPT’s offer. In other words, the Trust should be free to decide that preserving the Balsams property for the benefit of the North Country is more important than the Trust’s financial return.

Why was NPT’s attack on the conservation plan so troubling?

  • NPT sought to undermine land preservation efforts throughout New Hampshire. Land preservation almost always requires generosity – the landowner’s decision to accept less than market value or to make an outright donation of an easement. If it had been successful, NPT’s legal attack would have left no room for such generosity, granting any private developer the power to block a landowning non-profit’s preservation of its land whenever the developer offered more money than the conservation organization or community that would hold the conservation easement.
  • NPT is on war footing.  NPT is pursuing the equivalent of scorched earth litigation, resorting to strong-arm tactics and legal appeals to the state, including a threat of litigation to block the SPNHF easement that, as of today, remains on the table. At this early stage of the project’s permitting, this is exactly the opposite of what we need – a well-informed regional and statewide dialogue about our energy future, the project’s potential role if any, and the alternatives to traditional overhead lines along NPT’s proposed route.
  • NPT has broken its promise to find a route “that has support of property owners.”  The Trust made a decision not to sell to NPT; within days, NPT was crying foul to a state official.  NPT’s appeal to the state reveals, for all to see, that NPT will respect the will of landowners only when that will is to sell NPT the land it wants. As others pointed out before the Attorney General Office’s decision, NPT’s carefully-worded disinterest in using eminent domain (except as a “very last resort,” in the words of PSNH President Gary Long) is no longer credible, if it ever was.
  • NPT is willing to spend huge sums, but only to get the project it wants. Without hesitation or public discussion, NPT offered what amounts to a $1 million donation (of Hydro-Québec’s money) to the Trust, including a $200,000 grant to Colebrook Hospital and the money for the Balsams conservation easement. Clearly, NPT is willing to spend millions above and beyond market costs to get the route it wants, even as it rejects as too costly alternatives that could be better for New Hampshire.

Above all, the Balsams episode shows that NPT is not pursuing the Northern Pass proposal as a public-minded enterprise for the “good of all of New Hampshire.” With so much at stake for the region and New Hampshire, CLF’s work of 2012 is to secure a searching and rigorous public review process that will scrutinize every element of the Northern Pass project and ensure that the public interest – and not the dollars in NPT’s coffers – determines the project’s fate.

For more information about Northern Pass, sign-up for our monthly newsletter Northern Pass Wire, 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.

What the Keystone XL decision should mean for Northern Pass

Nov 17, 2011 by  | Bio |  Leave a Comment

Protesters against Keystone XL - November 6, 2011 (photo credit: flickr/tarsandsaction)

Last week, a major disaster for our climate and our nation’s clean energy future was averted – at least for now – when the Obama administration announced that it won’t consider approving the Keystone XL pipeline’s border crossing permit before it reconsiders the Keystone XL pipeline’s environmental impacts and the potential alternatives to the proposal on the table.  For all the reasons that my colleague Melissa Hoffer articulated in her post last week, the Keystone XL victory was a resounding, if limited, triumph with important lessons for environmental and climate advocates across the country as we confront, one battle at a time, the seemingly overwhelming challenge of solving the climate crisis.

The Keystone XL decision also hits home in another way. It sends an unmistakable signal that the federal government’s review process for New England’s own international energy proposal – the Northern Pass transmission project – needs the same type of new direction.

The parallels between the State Department’s Keystone XL environmental review and the mishandled first year of the U.S. Department of Energy’s review of Northern Pass are striking. In both cases, we saw:

  • Troubling, improperly close relationships between the developer and the supposedly independent contractors conducting the environmental review, with unfair and inappropriate developer influence on the review’s trajectory, undermining the public legitimacy of the review process;
  • An extraordinary grassroots uprising against the proposal from diverse groups of residents, landowners, communities, businesses, and conservation and environmental groups;
  • Massively expensive lobbying and public relations campaigns by proponents designed to confuse and mislead lawmakers and the public
  • Repeated failures by permitting agencies to ensure fair, open, and truly comprehensive review of the full range of impacts, including climate impacts, and the reasonable alternatives for meeting our energy needs in other, less environmentally damaging ways.

With all the legal, procedural, and substantive deficiencies our national advocate colleagues have been pointing out for years, the Keystone XL review (before last week) is a dramatic example of what we can’t allow to happen with Northern Pass. Right now, things don’t look good – it appears that the Department of Energy is engaging in an “applicant-driven,” narrow review of a few potential project routes, not the broad, searching analysis CLF and many others have demanded again and again (and again).  Last week’s decision to conduct a wide-ranging new review of Keystone XL shows that there is still the opportunity (and now a clear precedent) for the Department of Energy to bring the same spirit of renewed scrutiny and public responsiveness to its review of Northern Pass.

New Hampshire and New England deserve an impartial, comprehensive, and rigorous review of the Northern Pass project – and all reasonable alternatives – by the permitting agencies entrusted with protecting the public interest. Indeed, what we need now is a serious regional plan that addresses whether and how best to import more Canadian hydropower into New England and the northeastern U.S. With huge projects like Keystone XL and Northern Pass on the table, our nation’s energy future is at stake, and it has never been more important – for our communities, economy, natural environment, and climate – to get it right.

For more information about Northern Pass, sign-up for our monthly newsletter Northern Pass Wire, 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 renewable energy resource . . . on the web

Nov 7, 2011 by  | Bio |  Leave a Comment

CLF is a proud founding member of Renewable Energy New England, a non-profit association that brings together companies working on and supporting clean renewable energy (including developers of wind farms, manufacturers of equipment that harvests wind and solar power, private builders of transmission lines that serve wind farms) with environmental advocates. RENEW (as the group is known) has a nice new revamped website worth visiting.

Solving our massive environmental and energy problems will involve a lot of saying no to bad projects but will also will require saying yes to what affirmative projects that can meet the needs of our society and economy in a cleaner and better way.

Environmental advocates like CLF will never agree with everything that businesses like renewable project developers say and we will scrutinize their projects and may even oppose some.  But we need to work with them as much as we can if we are truly serious about reaching our shared goal of a thriving New England.

Interested in Northern Pass? Sign up for CLF’s new eNewsletter – Northern Pass Wire!

Oct 31, 2011 by  | Bio |  Leave a Comment

Are you concerned about the Northern Pass transmission project? Do you want to learn more about what it could mean for New Hampshire and New England’s energy future, for our climate, for energy rates, and for the communities and natural environment of New England and Québec? Do you want to keep up with the latest developments as the project progresses through the permitting process?

If you answered yes to any of these questions, you’ll want to sign up for CLF’s new email newsletter – Northern Pass Wire.  In a concise format, Northern Pass Wire will provide the latest news and analysis regarding the Northern Pass project direct from CLF advocates, with links to additional resources from CLF’s Northern Pass Information Center, our latest Northern Pass posts here on CLF Scoop, and CLF’s recent legal filings. Northern Pass Wire will also keep you informed about ways you can get involved and make your voice heard as the permitting process for the Northern Pass project continues. We expect to publish Northern Pass Wire about once a month, and perhaps more frequently when events warrant. The first edition can be previewed here, and you can sign up to get Northern Pass Wire here.

Please sign up and encourage your family, friends, and colleagues to do the same!

Click on the image to preview the first edition of CLF's Northern Pass Wire

New England still deserves a fair, big-picture review of Northern Pass, despite developers’ delay

Oct 26, 2011 by  | Bio |  1 Comment »

photo credit: Hope Abrams/flickr

Here in New Hampshire, the leaves have turned.  What hasn’t changed is that the environmental review of the Northern Pass proposal remains stalled while the project developers – Northeast Utilities (and its subsidiary Public Service Company of New Hampshire) and NSTAR – seek a new route for the northernmost 40 miles of the project.  It’s a disgrace that the U.S. Department of Energy (DOE) has so far refused to use the developers’ significant delay to assess the nature and extent of New England’s need for Canadian hydropower and to develop an appropriate plan to bring that power into the region, as CLF and others have been requesting since April.

While DOE is in a holding pattern, CLF is continuing to fight for a fair and comprehensive environmental review of the Northern Pass project.  Earlier this month, CLF filed new comments with DOE, supplementing the detailed comments we filed in April.  Our new comments address:

  • Why CLF has renewed concerns about DOE’s control over its new environmental review contractors.  Based on our review of the Memorandum of Understanding between Northern Pass, DOE, and its new contractors, posted here (PDF), we explain that Northern Pass could still have an unfair and inappropriate influence on the content of the environmental impact statement and the schedule for completing it.
  • What the Northeast Energy Link proposal means for the Northern Pass environmental reviewThe recently announced Northeast Energy Link proposal, along with the Champlain Hudson Power Express project, makes it clearer than ever that we need a regional assessment of our energy needs.  These other two transmission projects also show that burying transmission lines in transportation rights-of-way is an abundantly reasonable alternative to overhead lines.
  • How Northern Pass hasn’t clearly disclosed the source of power for the project.  We bring to DOE’s attention important information, obtained by CLF through its cross-examination of an executive of Northeast Utilities before Massachusetts regulators, that the source of Northern Pass’s power is likely to be new hydroelectric projects that Hydro-Québec is now in the process of designing and building.  CLF is especially troubled by the new information because the impacts of the project are much more significant if it causes the construction of new dams and the associated negative environmental impacts, including well-documented spikes in early greenhouse gas emissions from flooded land.  Northern Pass and its parent companies have consistently failed to acknowledge that these emissions undermine their claims about the reductions in emissions the project will supposedly provide.

A copy of our new comments is available here.  We also filed a Freedom of Information Act request with DOE, seeking to obtain a copy of the “Consulting Services Agreement” between Northern Pass and the environmental review contractor team.  The Memorandum of Understanding suggests that this separate contract includes important information on the budget and schedule for the environmental review, and the public deserves to know these details.

With the permitting process due to continue when Northern Pass announces a new northernmost route, CLF will be launching new ways to keep you informed about the latest Northern Pass news and the best ways for you to get involved and make your voice heard. Please stay tuned!

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.

More time to make your voice heard on the Northern Pass project

Apr 19, 2011 by  | Bio |  1 Comment »

Last Friday, the U.S. Department of Energy (DOE) announced in the Federal Register that it’s extending to June 14, 2011 the deadline for submitting scoping comments on the proposed Northern Pass electric transmission project.

UPDATE:  As of June 15, 2011, DOE has again reopened the comment period – this time indefinitely – pending the submission of updated route information from Northern Pass.  See more here.

This extension of the public comment period comes on the heels of huge turnouts at DOE’s seven public meetings in March and the news (noted on NHPR here and in the Concord Monitor here) that the developer of the project wants DOE to stop considering several alternative routes for the project in favor of its original preferred route.

DOE’s extension means that you still have an important opportunity to help shape the environmental impact statement (EIS) and influence DOE’s decision on the project.  The EIS will be a detailed statement of the environmental, social, and economic impacts of the Northern Pass proposal and alternatives.

What Should I Address in My Comments?

CLF encourages you to raise any reasonable concern or question about the proposed Northern Pass project and alternatives:

  • Describe how the project could affect the natural resources that you value.
  • Explain your concerns about the potential impacts of the project on scenic landscapes, communities, wildlife, forest resources, wetlands, recreation areas, the energy sector, and the local economy.
  • Demand that DOE analyze the environmental impacts associated with generating the hydroelectric power that the project will transmit.
  • Insist that DOE rigorously examine all reasonable alternatives to the project, including alternative project designs (like burying the lines in railroad or highway rights of way) and options that would generate or save the same amount of power here in New England (like local renewable energy, energy efficiency, or conservation programs).
  • Join CLF’s request for a comprehensive EIS that assesses New England’s need for Canadian hydropower and develops a more holistic, proactive plan for addressing any such need (as opposed to reacting to project-specific proposals such as Northern Pass)

How Do I Submit Comments?

To comment, email DOE at Brian.Mills@hq.doe.gov or use DOE’s Northern Pass EIS web form by June 14, 2011.  UPDATE: As mentioned above, the deadline for comments has been extended again – to a date yet to be determined.

For More Information

DOE must step back and consider Northern Pass in its broader context

Apr 13, 2011 by  | Bio |  2 Comment »

Daniel Johnson Dam, north of Baie-Corneau, Québec

Last night, CLF filed detailed written comments with the U.S. Department of Energy (DOE) regarding the scope of the Environmental Impact Statement (EIS) for the Northern Pass project. (A PDF of our comments is here.)   First and foremost, our comments urge DOE to stay the Northern Pass proceeding and instead conduct a comprehensive, regional analysis (a comprehensive EIS) of the region’s need for Canadian imports, to enable sound planning as opposed to the piecemeal, project-by-project approach DOE is currently taking by simply reacting to the permit applications of private entities like Northern Pass.   

Our comments expand on the remarks (PDF) I made at the Pembroke scoping meeting last month and come on the heels of yesterday’s major news that (1) Northern Pass wants DOE not to consider some alternative routes it included in its Presidential Permit application and also needs more time to discuss additional potential routes through the North Country (a PDF of Northern Pass’s filing is here and coverage on NHPR here) and (2) DOE is reopening the scoping public comment period through a date to be determined in June.  The fact that Northern Pass itself has asked for a delay to reconsider aspects of its project is an even stronger indication that DOE can and should take the time it needs to undertake a full regional analysis through an open, and collaborative public process.   

(more…)

What’s the plan for the Northern Pass environmental review?

Mar 31, 2011 by  | Bio |  Leave a Comment

If the U.S. Department of Energy (DOE) does its job right, the environmental review of the Northern Pass project – the largest infrastructure project in recent New Hampshire history – will be a massive and complex undertaking, analyzing all alternatives to the current proposal and describing the many social and environmental impacts of the project.  That’s why it’s critical that DOE begin its work with the right plan – one that takes into account the tremendous public input DOE has received during the ongoing scoping process and that also reflects DOE’s technical expertise, especially regarding the possible technological alternatives to the current proposal.  (Information on the scoping process and how to submit comments to DOE is here – the deadline for written comments is April 12.)

Today, in a joint letter to DOE, CLF and several partners renewed their request (also made at the mid-March scoping meetings) for DOE to release a report – before it begins work on the draft Environmental Impact Statement (EIS) – identifying the alternatives DOE plans to study in depth, the alternatives it plans to exclude from the analysis, and the categories of social and environmental impacts that it will consider.  We believe that DOE should not only prepare such a report, but also provide the public the opportunity to comment on it.

The report on the scoping process that DOE currently intends to issue – one that simply summarizes public input – is not enough, especially for this project.  The project application provided almost no information on alternatives and environmental impacts (something CLF and others vehemently objected to months ago), and that lack of information has undermined the public’s ability to provide meaningful feedback during the scoping process as a result.

Before DOE and the EIS contractor it ultimately selects to replace its original contractor begin studying the project and its alternatives behind closed doors, the public deserves to know DOE’s plan and to have the chance to suggest changes to that plan. Otherwise, DOE may “re-emerge” from its work months from now with a document that misses important alternatives and will be very challenging to change – a result that would be problematic for DOE and the public alike.  DOE needs to get it right the first time, and the public should be invited to help ensure that DOE has the right plan to do so.

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.

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