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.

Ratepayers Subsidizing PSNH’s Addiction to Coal

Jun 4, 2012 by  | Bio |  Leave a Comment

This Sunday, an Op-ed of mine appeared in The Portsmouth Herald. Below find a copy of the original text. You can find a copy of the original story here.

The nation and New Hampshire are relying less and less on coal — our dirtiest, least efficient fuel — to meet our electric power needs. PSNH recently announced it is not operating its flagship coal plant, Merrimack Station in Bow; the plant will sit completely idle for six months of 2012. The two coal boilers at PSNH’s Schiller Station in Portsmouth will operate even less. Yet, PSNH customers continue to pay a premium to keep PSNH’s coal plants on life support, thanks to a regulatory system that protects PSNH’s interests over those of ratepayers.

Coal-fired power plants — expensive new facilities and decades-old dinosaurs like PSNH’s plants alike — can’t compete in today’s marketplace. Investors and customers are moving toward cleaner, cheaper alternatives, principally natural gas, but also renewables (especially wind) and high-tech ways of reducing energy use. Northeast Utilities — PSNH’s parent company — admits that this reality is not going away anytime soon.

Indeed, the trend is accelerating. In the first quarter of 2012, coal power accounted for only 36 percent of the nation’s total electric output — the smallest role for coal in a generation and down almost 9 percent from the first quarter of 2011. Regionally, a new milestone came in April, when the New England regional electric grid operator announced that, during the previous month, the entire New England coal fleet was uneconomic — meaning there was not a single hour when a coal plant was able to compete with other energy sources. Despite coal’s downward trajectory, PSNH made big bets that the market for coal-fired power will exist for years to come. Exhibit A: PSNH’s investment — over vigorous opposition from the Conservation Law Foundation, ratepayer advocates and others — in a $422 million life extension project for Merrimack Station. If PSNH gets its way, ratepayers will foot the whole bill, plus a 10 percent guaranteed profit for PSNH’s sole shareholder, Northeast Utilities.

Why has PSNH been so richly rewarded for bad economic decisions? Put simply, New Hampshire’s relic of a regulatory system still protects PSNH and its coal plants from the market. Remarkably, ratepayers continue to pay for upkeep and staffing at PSNH power plants, even when they sit idle, and also pay that same 10 percent profit on the book value of all PSNH assets. No other power plant owner in New England gets such special treatment. Yet PSNH continues to sidestep scrutiny.

Earlier this year, following a massive lobbying effort orchestrated by PSNH, the New Hampshire House voted to table a bill that would have forced a hard look at PSNH’s continued ownership of these obsolete power plants.

In the meantime, PSNH remains in an economic “death spiral” with few large business customers to cover its costs and its remaining customers — homeowners and small businesses — now paying as much as 50 percent more for power than customers of other utilities, which get their power from the competitive market. Under the status quo, PSNH will siphon more than a $100 million in above-market costs out of the New Hampshire economy this year.

For the environment, the climate, and the long-term public and fiscal health of the communities surrounding these plants, coal’s demise is encouraging news. The market is providing an unprecedented opportunity to relegate coal power to the history books for good. New Hampshire should seize it.

The “New Route” for Northern Pass Won’t Cure Its Failings

May 24, 2012 by  | Bio |  Leave a Comment

This summer, New Hampshire is bracing for news of the Northern Pass project’s future and its “new route.”

It’s now been nearly a year since the federal permitting process for the Northern Pass project was put on indefinite hold. North of Groveton, New Hampshire, the developer – Northern Pass Transmission LLC (NPT) – is still working behind tightly closed doors to string together a new section of the project route, where there are no existing transmission corridors, by paying landowners substantial sums for property – in many cases, well above market value.

Earlier this month, the chief operating officer of NPT’s parent company, Northeast Utilities, told investors:

Where we are right now is in procuring the last 40 miles of the right-of-way, and I can tell you we are making very, very strong progress in lining up the right of way. I think we’re on track for the middle of the year, approximately August timeframe to have the right-of-way secured and then to be prepared to file with the [U.S. Department of Energy] the route….

NPT’s apparent plan (assuming it really can overcome the considerable obstacles to a new route):

Not so fast. Before the news arrives (if it does), it’s worth remembering that whatever new lines the developer manages to draw on the map do nothing to change the project’s DNA or to demonstrate that the project will benefit New Hampshire. A brief review is in order:

Where are the benefits for New Hampshire?

Through  costly marketing efforts, NPT has been trying to sell New Hampshire on the tremendous economic and environmental benefits of Northern Pass. But the supposed benefits just don’t hold up to scrutiny:

  • Reduced emissions from “clean power”?

In terms of greenhouse gas emissions, CLF’s report on the most recent science demonstrated that new hydropower projects to supply power for Northern Pass are much worse for the climate than NPT’s false advertising claims have led the region to believe and are not meaningfully better than natural gas power plants (the power NPT predicts that Northern Pass would replace) in the early years after reservoirs are developed. As a result, contrary to mistaken but widely disseminated assumptions, importing hydropower from Canada is not a short-term solution that will reduce New England’s or New Hampshire’s carbon emissions. Indeed, the current proposal would have the perverse effect of protecting – rather than hastening the transition away from – PSNH’s low-performing, high-emitting power plants, which are New Hampshire’s largest source of greenhouse gas emissions. (Despite marketing the project based on its “clean” source of the power, NPT also refuses to acknowledge the relevance or importance of the troubling damage to ecosystems and communities that large-scale hydropower causes in Canada.)

  • Lower electric rates?

Those who would live with the new transmission lines, customers of NPT affiliate PSNH, are the least likely to benefit. Despite nearly two years of promises that PSNH would announce a plan to purchase Hydro-Québec hydropower for New Hampshire residents, there is still no agreement to do so. Any modest effects on the region’s wholesale electricity rates (which NPT’s consultant predicted based on outdated economic assumptions about energy costs) don’t translate into lower rates for PSNH customers (who instead are stuck paying the bill for PSNH’s inefficient and dirty power plants). In fact, if Northern Pass succeeds in lowering wholesale rates, it will likely worsen PSNH’s death spiral of increasing rates and fewer customers, leaving those residents and small businesses still getting power from PSNH with higher bills.

  • Growing New Hampshire’s clean energy economy and jobs?

There is a substantial risk that Northern Pass would swamp the market for renewable energy projects in New England, especially if state laws are amended to qualify Hydro-Québec power as “renewable.” Furthermore, the project’s high voltage direct current technology means that its massive investment in transmission capacity will wholly bypass the potentially fertile ground for renewable energy development in northern New England. Whatever the short-term construction jobs required (and NPT’s estimates are disputed), the current Northern Pass proposal may diminish the prospects for New Hampshire’s clean energy economy, including needed permanent jobs in the renewable and energy efficiency sectors.

No regional plan addressing new imports

Québec continues to implement its ambitious plan to develop more wild Boreal rivers into a new generation of massive hydropower projects, which will increase its export capabilities. This January, Hydro-Québec commissioned the final turbine at its latest hydropower facility (Eastmain 1-A) and will commission other turbines (at Sarcelle) as part of the same overall project later this year. Construction at the $8 billion Romaine River hydropower project (the subject of the film Seeking the Current) has begun and is ongoing, with the first unit expected to come online in 2014. Northeast Utilities has affirmed that Northern Pass will tap the power from these new projects. Meanwhile, Northern Pass competitors are moving forward with new transmission projects in eastern New England and in New York, among others:

Northern Pass and competitor transmission projects (source: ISO-NE)

More than a year ago, CLF and others urged the Department of Energy to weigh the region’s energy needs and develop a strategic regional plan that would determine a well-informed role for new Canadian hydropower imports in the northeastern United States’ energy future – before moving forward with the permitting process for Northern Pass. NPT’s only response was that responsible planning – encompassing the other pending transmission projects and a full consideration of the reasonable alternatives – would unacceptably delay its project – a truly ironic claim given NPT’s own, unforced, ongoing delay. More incredibly, the Department of Energy has so far sided with NPT, without explaining why.

So as Québec builds more dams and NPT buys up land, our region has no plan of its own. With no framework to understand the nature and extent of the appropriate role for Canadian hydropower, it is difficult if not impossible to make a sound, well-informed decision on whether Northern Pass – or projects like it – should proceed.

Community and grassroots reaction throughout New Hampshire

Since Northern Pass was announced in 2010, the project has inspired a broad-based and spirited movement of people throughout New Hampshire to oppose the current proposal. Last spring, there were massive turnouts at the Department of Energy’s public hearings on the project, with literally thousands attending and providing written and verbal comments both questioning the merits of the current proposal and urging a thorough environmental review. And earlier this year, a coalition of citizens and organizations of many political stripes succeeded in persuading New Hampshire’s legislature to enact a bill preventing projects like Northern Pass from using eminent domain. In another effort, more than 1,500 donors contributed total of $850,000 to enable the Society for the Protection of New Hampshire Forests to preserve the treasured New Hampshire landscape surrounding the historic Balsams resort, including a parcel that NPT had sought to purchase as part of Northern Pass’s transmission corridor. To date, town meeting voters in 32 local communities have passed resolutions and ordinances against the current proposal. Critically, most of these communities are located along the NPT’s “preferred route” that follows PSNH ‘s existing transmission corridor, south of any “new route” that NPT may announce.

NPT’s refusal to consider routing and technological alternatives

At every turn, NPT has rejected calls for in-depth consideration of potential alternatives to its current proposal, including use of an existing high-voltage transmission corridor that extends from Canada, through Vermont and western New Hampshire, to Massachusetts; burying transmission lines in transportation corridors, as is proposed in the New York and eastern New England projects mentioned above; or adding capacity to that same New York project, consistent with that project’s original proposal (it has since been scaled back). Indeed, Northern Pass’s response to the public’s opposition to the project was to “withdraw support” for alternative routes and double down on its “preferred route.” While this stance may be in the economic interest of NPT and PSNH, it’s grossly at odds with a fair, well-informed permitting process that would vindicate the public’s interest in a solution with minimal environmental and community impacts.

If and when NPT comes back from its year of buying up North Country land and relaunches its effort to secure approval of the Northern Pass project, with the only change to the proposal consisting of a new line on the map north of Groveton, there should be no mistake: the fundamental flaws in the current proposal remain. Likewise, whatever NPT’s “preferred route,” CLF remains as committed as ever to securing a comprehensive and rigorous permitting process that identifies superior alternatives and a final outcome that moves us toward – and not away from – a clean energy future for New Hampshire and the region.

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.

Vermont’s Clean Energy Shortfall

May 8, 2012 by  | Bio |  Leave a Comment

photo credit: Ivy Dawned, Flickr

The end of any legislative session is tumultuous. Vermont’s citizen legislature, that meets part-time only a few months each year, is no different. In this year’s end-of-session tumult, progress on clean energy was left on the cutting room floor. This is a big disappointment. The same legislature that made skiing and snowboarding Vermont’s official winter sports failed to pass legislation that would keep those sports off the endangered list.

The Vermont Legislature stripped the Renewable Energy Standard from the energy bill it approved. Renewable standards require utilities to help address climate change by providing their customers with a certain percentage of power from clean, renewable sources. The more power we get from clean sources, the less power we get from older and dirtier fossil fuel plants. Twenty-nine states, including every other New England state, already have renewable standards, but Vermont is left behind in the dark ages of dirty power.

Throughout the session, CLF worked closely with other environmental organizations, business leaders and renewable developers to put in place a meaningful renewable standard so Vermont’s electric power users can do more to reduce carbon. The urgency of the climate crisis demands strong action.

There will be opportunities to move further ahead on renewable electricity next year, along with some legislation to help heating efficiency and electric vehicles, but each year we delay means more carbon reduction is needed. It is disappointing that in a year in which Vermont saw, in the form of flooding from Hurricane Irene, the kind of damage that climate change can do, and then saw one of the warmest winters on record (which wreaked havoc on ski areas and maple syrup production), we are not doing more to tackle climate change.

Reason to Believe In Taking Action on Global Warming

Mar 29, 2012 by  | Bio |  Leave a Comment

Climate Scientist Katherine Hayhoe is an evangelical Christian who sees her work and the need to protect the earth as deeply consistent with her faith.

Read all about her at Climate Central.  Buy her book, co-written with her husband who, like Dr. Hayhoe, is a Professor at Texas Tech. He is also the Pastor of their church.

Given the latest science showing that the models that predict the exact march of global warming appear to be overly conservative and underestimating the effects of the warming in progress and the strong likelihood that we are about to cross an irrevocable tipping point that commits the planet to deeply damaging warming it is not crazy to suggest that we need science, prayer and action.

The need for action and steps to be taken to address this crisis is not abstract.  The latest massive compilation of science shows the very real effects that global warming is having all around us and will increasingly inflict upon us.  The need to build resilient communities that can survive (and even thrive) in these conditions is very real.  However, it is equally vital that we reduce the emissions that are disrupting the climate.  This means building renewable energy of many sizes and types, it means making our society and economy more efficient, properly planning and building our communities and providing and funding safe and clean transit and spreading and truly implementing efforts like the Massachusetts Global Warming Solutions Act and the greenhouse gas regulations being slowly rolled out by the Federal government.

The size, scale and nature of the crisis we face must spur all of us, whether we are motivated by a purely secular moral motivation to watch out for our fellow humans and/or other planetary passengers or the religious mission that guides someone like Dr. Hayhoe, to act. Because if we don’t we truly don’t have a prayer.

 

Doctor Yergin’s dilemma

Mar 14, 2012 by  | Bio |  2 Comment »

Update – The debate about this phenomena continues.  See compilation of further ruminations about continued available petroleum and climate from a variety of powerful voices in another post from June 11, 2012.  And some of the same ideas are chewed on in an interesting op-ed by Reuters editor Chrystia Freeland in the August 9, 2012 New York Times.

In 1991 Daniel Yergin published his massive history of the petroleum industry, The Prize: The Epic Quest for Oil, Money and Power. Regardless of what you think about Yergin’s perspective on the topic, it is hard to dispute the complete and authoritative nature of that book. It provided a guided tour through the life of one of the defining industries of the 20th century and remains a powerful and surprisingly readable look at this essential subject.

In the years that followed there was strong interest in an update to The Prize that brought the story up towards the present and grappled with challenges to the ascendancy of petroleum in our economy and society – like the realization that global warming caused by burning fossil fuels is causing deep and systemic damage to the planet.

In 2011 Doctor Yergin did produce that much awaited sequel, The Quest: Energy, Security and the Remaking of the Modern World. That book contains six full chapters detailing the evolution of modern climate science and leaves no doubt about the fundamental validity of the observation that the phenomena of global warming from the burning of petroleum and other fossil fuels is indeed, very real.

However, that point must play out against the backdrop of Dr. Yergin’s deep and abiding belief that the there is no such thing as “peak oil” – that global oil production may plateau and stop rising but that improvements in technology mean that we will never see a steep decline in exploitable oil reserves. Indeed, he is even more firm in his belief that if you look at the broader array of fossil hydrocarbons, including natural gas, that the progression of technologies like hydraulic fracturing and its deployment across the world will lead to continued availability of such fuels at fairly low prices for the long term – really, he argues, indefinitely. This is a hard perspective for a climate advocate to ponder – he is in effect arguing that continued availability of hydrocarbons is an “inconvenient truth” that those addressing the challenge of global warming must face, that the argument that “we are running out of the stuff anyway” is simply not part of the debate about continued use of fossil fuels.

But Dr. Yergin has his own dilemma to confront: he does not address the fundamental collision between his observations about the validity of climate science and his belief that we are not in danger of running out of affordable hydrocarbons. This is an especially difficult circle for him to square as he is fundamentally an optimist – believing that society has always found technological solutions to the problems we have encountered and created for ourselves in the past and we will do so again. To Dr. Yergin’s credit he does engage renewable energy and energy efficiency, the  key tools for decarbonizing our economy, at  length in The Quest but never quite gets to the point of describing a path to a future where we are no longer burning fossil fuels and putting greenhouse gases into the atmosphere.

It would be very difficult for Dr. Yergin to fully confront the dilemma implicit in his work – that the presence of affordable hydrocarbons (oil and/or natural gas) for indefinite future will create a strong pull constantly moving us away from making the reductions in our greenhouse gas emissions that science tells us we need to make in order to save ourselves.

Bill McKibben has noted on many occasions, getting off fossil fuels will be the hardest thing that humanity has ever done and the only thing that would be harder would be living in the world where we don’t. And Dr. Yergin is telling us that his expert analysis is that it will be even harder than many believe to make that transition because new technologies and techniques will continue to increase the pool of available fossil fuels – but he has looked at the climate science and he does not deny that we must make the transition.

 

Boston Globe Columnist on the NU/NStar Settlement and Hydroelectric Power from Quebec

Feb 17, 2012 by  | Bio |  Leave a Comment

Steven Syre, in his widely read Business news column in the Boston Globe, delves into one of the many important aspects of the settlement between the Commonwealth of Massachusetts and Northeast Utilities and NStar, setting the stage for those two utilities to proceed with their plans to merge. As he notes, most of the attention (understandably) about that settlement has been focused on the provision regarding the purchase of power, by NStar on behalf of its customers, from the Cape Wind project.

However, Syre discusses the provisions of the settlement regarding imports of power from large hydroelectric facilities in Quebec into New England. He notes that the settlement includes a commitment by the Massachusetts utilities signing the agreement that they would not use any large hydropower to meet state-mandated renewable energy targets for the next five years and describes the concerns that lead to this conclusion.

Syre describes how, “State officials and others point to several reasons why it would be a bad idea to count hydropower as a source of power that qualifies as renewable energy. They say that such a designation could increase the price of hydropower and hinder the long-term development of other forms of renewable energy.”

He notes that:

“Other critics even think Hydro-Quebec’s environmental benefits are being oversold. A new study commissioned by the Conservation Law Foundation says large-scale Canadian hydropower will produce ‘substantial greenhouse gas emissions that are comparable to those of modern natural gas-fired power plants.’”

CLF’s take on the agreement grows out of our deep involvement in the merger proceeding and our engagement with many issues that are addressed in the settlement. These include both the Cape Wind project and the questions about the net environmental impact of large hydroelectric power. CLF commissioned the study that Syre discusses, as well as a related analysis that highlights the existential threat to New England-based renewable power from designating large hydropower as eligible for financial incentives under our renewable energy laws.

All of the provisions of the agreement work together to move towards the goal of net gain for the customers of the merging companies and movement towards attaining the important environmental goals of Massachusetts. As Sue Reid of CLF, our lead advocate on the merger, said about the settlement, it is a significant advancement for Massachusetts and all of New England in a number of regards:

  • It removes the last major hurdle to building Cape Wind;
  • It ensures that the Commonwealth will continue to reap the cost savings and environmental benefits of the Massachusetts Green Communities Act;
  • It will help ensure that imported hydropower does not diminish other renewable energy deployment in Massachusetts and beyond;
  • It will reduce barriers to installation and operation of small, distributed renewable energy generating facilities in Massachusetts; and
  • It will freeze the merged utility’s rates for 4 years, will require transparent public review of NSTAR’s electric and gas rates before the rate freeze expires, and will deliver – upon approval of the merger – an immediate 50% credit to Massachusetts customers based on expected merger savings during the first 4 years following merger approval.

All of these provisions are significant and are reason to hail this agreement as an important landmark in the evolution of our energy system and the march towards a cleaner and better future where our economy, environment and communities can all thrive.

Massachusetts and Federal Government Team Up to Tap Abundant Offshore Wind Energy Resource

Feb 3, 2012 by  | Bio |  Leave a Comment

From left: Barbara Kates-Garnick, Carl Horstmann, Tommy Beaudreau, and Sue Reid. Credit: Meg Colclough.

Earlier today my colleague Sue Reid, VP & Director of CLF Massachusetts, joined state and federal officials to announce the latest milestone for obtaining plentiful and clean renewable wind energy from the Outer Continental Shelf offshore of Massachusetts. Specifically, they initiated the process for developers to begin leasing and site assessment, and for data gathering and public input, to facilitate off shore wind deployment in an area approximately 12 nautical miles south of Martha’s Vineyard and 13 nautical miles southwest of Nantucket. (The federal press release can be found here.) The “Call Area” as it is termed, was identified following consultation with ocean users, such as fishermen and other stakeholders, through an intergovernmental renewable energy task force led by Massachusetts officials.

Today’s announcement follows President Obama’s State of the Union address, in which he expressed the compelling need to develop alternative sources of energy. CLF agrees: the environmental imperative and ongoing energy transformation replacing obsolete uneconomic fossil fuel power plants requires deployment of the full range of available renewable energy resources. Because offshore wind is strong and persistent, it is among our most robust emissions-free renewable energy sources. We also support the laudable efforts of the Commonwealth and federal government, who share jurisdiction over marine resources, to join initiatives to expand our clean energy resources with efforts to engage in thoughtful ocean planning, both of which have been major themes in Massachusetts. Massachusetts has been a leader in both coastal marine spatial planning and in offshore wind deployment. Those experiences are now being replicated by other states and the federal government – something CLF welcomes.

In speaking alongside Tommy P. Beaudreau, Bureau of Ocean Energy Management Director, and Barbara Kates-Garnick, Massachusetts Under Secretary of Energy, on the steps of the Wind Technology Testing Center, Sue said:

“One might think it’s unusual for environmental advocates to be championing efforts to develop energy resources; after all, CLF led the charge successfully fighting off all oil and gas drilling in New England waters. That’s because we recognize that, while we need to pursue a portfolio of clean energy alternatives, there is NO other resource that has the sheer magnitude of clean energy potential as offshore wind. Offshore wind holds promise for displacing many gigawatts of fossil fuel-fired generation, keeping the lights on and homes and businesses thriving while we shut down old, dirty, inefficient coal and oil-fired plants.”

She also underscored how important this work is. She said:

“While most local eyes are trained on a different Tommy, out in Indianapolis for a certain small-stakes football game, we’re thrilled that this Tommy, the new quarterback of the Obama Administration’s offshore renewable energy team, is in Massachusetts, focused on moving the clean energy ball rapidly down the field here, in concert with the Patrick Administration and a host of other stakeholders. This is a battle that we must win. Success is our only option.”

Sue is right – milestones like this help us to realize the potential for a new clean energy future—one that is being fostered in Massachusetts through some of the strongest state renewable energy policies in the nation. Our challenge is to advance from salutary policies to new renewable energy deployment that benefits Massachusetts with jobs, economic activity, cleaner air and a healthier environment. Today’s development was one step on a path just begun.

Court on Cape Wind: MA DPU Was Right – Cape Wind’s Costs are Reasonable, Massachusetts Ratepayers Will Benefit

Dec 29, 2011 by  | Bio |  Leave a Comment

The Cape Wind offshore wind project moved one big step closer to construction yesterday when the Massachusetts Supreme Judicial Court (SJC) affirmed the MA Department of Public Utilities’ (DPU’s) finding that the project’s costs are reasonable in light of the many benefits it will bring.

Massachusetts’s highest court upheld the November 2010 decision of the DPU, which approved a critically important contract between Cape Wind and National Grid in which the electric utility agreed to purchase half of Cape Wind’s output. Cape Wind opponents had appealed the DPU’s decision— the latest in an endless stream of ill-fated maneuvers intended to block the nation-leading clean energy project from being built.

CLF intervened in the appeal proceeding with fellow environmental groups NRDC and Clean Power Now, making the case that the DPU’s extensively-researched decision showed clearly that Cape Wind’s benefits would outweigh its costs. Among these benefits is the project’s close proximity to areas of high electricity demand, which gives it logistical advantages over obtaining power from more distant energy projects that have been proposed.

The High Court’s validation should make it easier for Cape Wind to secure a buyer for the other half of the wind farm’s output and attract project investors to help finance construction. When built, after more than a decade of exhaustive reviews, Cape Wind will be the nation’s first offshore wind project.

Encouraged by yesterday’s decision, Jim Gordon, president of Cape Wind, spelled out some of the benefits Massachusetts residents could anticipate when Cape Wind is built, including, “creating up to 1,000 jobs, providing Massachusetts with cleaner air, greater energy independence and a leadership position in offshore wind power.”

We at CLF say, “Bring it on…not a moment too soon!”

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