Showing posts with label Commissioner Recchia. Show all posts
Showing posts with label Commissioner Recchia. Show all posts

Tuesday, October 27, 2015

Public Service Commissioner: Vermont Green Energy Plan Not About Global Warming. Guest post by Bruce Parker

By Bruce Parker  /   October 23, 2015


As Vermont races to become the nation’s first green-energy economy, the head of the Public Service Department says the state’s renewable energy plan is about economic matters, not global warming.

On Wednesday, the Vermont Public Service Department completed the third of five public hearings for the state’s 2015 Comprehensive Energy Plan. The 380-page document, set to be completed and adopted by Jan. 1, charts a course for Vermont to get 90 percent of its energy from renewables by 2050.

While Vermonters are struggling to see the benefit in siting hundreds of utility-scale solar and wind projects in neighborhoods and atop mountain ridgelines, the benefit most commonly associated with embracing green energy — combating global warming — is conspicuously absent from Vermont’s plan.

“I disagree with the characterization that the reason we’re doing this is to try and improve global warming,” Chris Recchia, commissioner of the Public Service Department, told Vermont Watchdog.

“It is certainly a byproduct of it, and a help, but primarily why we’re doing it is to have stable energy pricing and really secure energy resources that are renewable in our state.”

Recchia, appointed by Gov. Peter Shumlin in 2013 to lead the department responsible for regulating energy development, said Vermont is too small to make a difference in the nation’s carbon footprint. As result, the commissioner says Vermont needs to embrace an all-renewable-energy future to have a strong economy, a stable energy supply and stable energy pricing.

“If everybody else in the United States and around the world did what we’re doing, it would have a tremendous impact on climate change. The problem is we can only do what we can do,” he said.

Since Shumlin made renewable energy a top priority of the state, towns have found themselves fighting green-energy companies eager to profit from taxpayer subsidies and regulation-free land use policies.

Swanton, which is battling a proposal from Swanton Wind LLC to construct seven 500-foot wind turbines on a local ridgeline, has scheduled a Nov. 17 townwide vote to give residents a say in the matter.

“We’re definitely against it. The Selectboard, we do not support this project. We are for renewable energy if it’s the right thing for our communities, but this is not the right thing for our communities,” Swanton Selectboard Chair Dan Billado told Vermont Watchdog.

“These towers are 100 feet or more taller than any turbines in New England — they’re 499 feet. That equates to 50-story structures on a ridgeline that’s already a 345-foot ridgeline above the lake. Tell me anywhere in Vermont where we have 50-story structures.”

On the year’s windy days, the project will provide power to an estimated 7,800 homes. Despite that benefit, Billado said people in the town are worried about the project’s negative effect on wildlife, public health, water quality, property values and aesthetics.

“We already know that windmills kill birds and bats. It’s devastating on that, not to mention the rest of the wild animals — deer, bear, coon, fox, you name it,” he said. “It drives them away. They say they’ll come back, but nobody can give us an answer when.”

At the town’s Tuesday night Selectboard meeting, more than 50 residents met with Recchia to express concerns about the turbines. According to Billado, when the board asked for a show of hands to see how many people opposed the project, all but five people threw up their hands.

“The five people for it were Mr. Belisle, his wife, his lawyer, and, I believe, his sister and brother-in-law that were there — they’re the developers.”

Billado said the vote could have as big a turnout as the Oct.1 vote in Irasburg, which saw residents fill Town Hall to overflowing to vote 274-9 against 500-foot windmills on the Kidder Hill ridgeline west of the village center. Although non-binding, such townwide votes send a loud message that developers need to go someplace else.

RELATED: Revolt: Vermont town votes 274-9 against giant wind turbines

Vermont Watchdog asked Recchia if towns could be expected to sacrifice their landscapes for a plan
Chris Recchia
Commissioner
DPS
that offers negligible environmental benefits and significant environmental damage.

“It is not a huge sacrifice compared to what the people of West Virginia have been dealing with for 100 years in terms of coal mining and mountaintop removal and a variety of other things. It just is not the same scale,” he said.

For environmentally minded Vermonters, Recchia’s perspectives may seem out of touch.

“To say, ‘OK, it’s really about having stable energy prices; it isn’t about having some sort of impact — even local — on global climate change,’ you’re missing the boat with me,” said Michael Keane, a Selectboard member in the Town of Bennington.

“Prices are always going to go up and down. There’s not going to be any absolute control of prices. … If all we’re thinking of is stable prices, we’ve let ourselves be horse-traded in sort of a Wild West situation.”

The “Wild West” in Bennington includes a plan to clear-cut 27 acres of forest for a two-plot solar farm in the Apple Hill residential area along Route 7, within eyeshot of the town’s welcome center.

The project’s developer, New York City-based Allco Renewable Energy, angered residents when the CEO criticized a Bennington woman who decided to intervene against the project due to aesthetic and procedural concerns. In 2010, the CEO himself campaigned to stop an offshore wind farm from being sited in Nantucket Sound near his summer home in Martha’s Vineyard.

In August, the Bennington Selectboard voted against the arrays due to “the inevitable damage to environmental, historical, safety, visual, and aesthetics of the surroundings.” Two weeks ago, board members sent the Public Service Board a letter saying its decisions “appeared to ride roughshod” over the concerns of the people of Bennington.

Recchia may be listening to towns’ complaints. He said he would oppose “random applications being submitted by developers that don’t have any relationship to what towns and communities want.” He also said he would work to help residents “be part of the solution and really engage in the process.”

Going forward, Recchia said the department plans to enlist all regional planning commissions in the state to conduct smart energy planning with communities in the upcoming year.

Swanton needs answers sooner rather than later, according to Billado.

“When they start blasting ridgelines, what’s that do to surrounding wells? You’re fracking the ground (and) breaking up flows of water that feed people’s wells. What’s that going to do to everybody’s drinking water? Nobody knows. They say they have to do studies,” he said.

According to Keane, if the state’s energy plan is about economic issues, Vermonters need to rethink the real benefits of moving forward.

“If we’re doing this for stable energy prices in the year 2020 or 2030, then let people know that. Let’s disabuse them of the goodwill intentions that they have to have a benefit on the environment,” he said.

“If, in fact, we are not having some sort of useful impact on the environment that we can either have bragging rights about or be thought of as a model for other political entities, then what the hell are we doing?”

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Bruce Parker
This post by Bruce Parker first appeared in Vermont Watchdog, October 23, and is reprinted here by permission. Parker has frequent guest posts at this blog: his most recent guest post was Vermont town protests renewable energy credits for MA and CT.

You can reach Bruce Parker at bparker@watchdog.org

Wednesday, February 18, 2015

Entergy Uses Decommissioning Fund: State Officials Are Very Upset

Entergy Keeps Its Promises

In terms of decommissioning, Entergy has kept every one of its promises to the state of Vermont, and even gone beyond its promises.  Here's a list:

1) PSDAR: Entergy said it would finish its PSDAR (Post Shutdown Decommissioning Activity Report) by the end of 2014, although the NRC allows two years (till December 2016) for the report.  Entergy completed and released the PSDAR on December 19, 2014.
2) Fund Payment: Entergy signed an agreement with the state for the last few months of the plant's operation. This agreement required Entergy to send various payments ($2 million for Windham Country economic activity, for example) to the state.  All such payments have been made promptly.
3) Spent Fuel Management Loan: Entergy took out a $143 million dollar loan for spent fuel management, because the state wanted the fuel removed from the fuel pool very promptly.  Strictly speaking, decommissioning funds are not supposed to be used for spent fuel management.  The federal government is legally required to manage the spent fuel.

(Short pause here.  Time to let people get off the ground after the laughing fit. No, this post is not about Harry Reid. Are you standing up now? Onwards.)


Senator Harry Reid
 image from his website
Obtaining spent-fuel management funds from the federal government can be slow.  The company has to sue the federal government, win the lawsuit, and finally obtain the money. Entergy said it would remove spent fuel from the fuel pool very promptly.The state wanted the spent fuel out of the fuel pool ASAP or sooner than ASAP.  Entergy doesn't need to comply with "ASAP" but it is doing so.

Amazingly, Entergy has arranged to borrow $143 million dollars for spent fuel management and moving the spent fuel into dry casks. This borrowed money will be repaid after Entergy sues the federal government.  Note that taking out this loan was not in any agreement that Entergy signed with the state.   Entergy decided to do this to speed up the process.  It is possible that Entergy (with NRC permission) might have been able to borrow this money from the decommissioning fund itself.   Of course, that would have depleted the fund and slowed the decommissioning.

Entergy needs some reimbursement

Entergy has done lots of planning, written reports, taken the fuel out of the reactor, arranged loans.  All activities concerned with decommissioning the plant.  So it requested permission from the NRC to obtain $18 million from the decommissioning fund.  The NRC is in charge of the fund, and of decommissioning, and of ensuring that fund moneys are properly expended.

The state objected.  No, really, it did!  Vermont wants decommissioning very quickly but Vermont believes it has approval rights to determine exactly what the decommissioning funds are used for. In short: Vermont thinks the NRC needs state permission to release decommissioning funds. 

(Short pause here. Vermont has challenged the NRC's authority over nuclear power plants before.  On this subject, how many lawsuits has Vermont won?)

The state is upset!


DPS Commissioner
Chris Recchia
The first thing that I noticed about the state's attitude toward the withdrawal was a Vermont Digger article by John Herrick: Entergy Makes First Withdrawal from Decommissioning Fund.  In this article, Vermont Department of Public Service Commissioner Chris Recchia is quoted: “I am probably more OK with the actual withdrawal than I am with the process….I don’t get to see it in advance.”

Indeed, the attorney general of Vermont and others in state government wrote the NRC to object to this withdrawal. Their letter claimed that the state has the right to review expenditures of decommissioning funds, and the funds should not be released, pending state review of the request.

The state letter is posted in the Document Library of Entergy's VY Decommissioning website. The Document Library is a great boon to anyone who wants to follow this process.

Though the state letter is quite long, the main basis of the letter seems to be the  Memorandum of Understanding under which Entergy purchased the plant in 2002.  A great deal of that memorandum is about decommissioning funds.  The agreement states that, AFTER decommissioning is complete, Entergy must share 50% of whatever decommissioning funds are left over with the state. However, in the recent PSDAR, Entergy does not claim that there will be enough decommissioning funds available until the near the end of sixty years of SAFSTOR.  The funds will grow, and full decommissioning will commence close to 2070, when the funds have grown enough to support it.

In other words, concern with sharing excess funds with the state is a bit early and a bit theoretical!  However, the Memorandum agreement that excess funds "will be shared" seems to have given the state the idea that the state has authority over how the funds are disbursed.

But the state doesn't have authority. Yes, the state does have some limited say over how the funds are disbursed. If you look at item 7 in the Memorandum, the state must approve IF the funds are used for anything other than "qualified expenses."  There is no reason to believe that Entergy's first request to NRC was for not-qualified expenses.

My Conclusion: The Bank of Entergy is Still Closed


Attorney General William Sorrell
Once again, the state is over-reaching.  The state hasn't figured out yet that harassing Entergy with letters to the NRC and so forth will do no good.  The decommissioning funds are the only funds available now for Vermont Yankee (except for the loan, of course). The NRC determines if the decommissioning funds are being used correctly.

To me, this whole thing has unpleasant echoes of the time when the Vermont legislature tried to shut Vermont Yankee. They held a legislative vote  that was basically all about safety. Entergy sued the state, and the legislature reacted swiftly to the lawsuit.  They passed a law that Entergy had to pay the State's expenses in defending against Entergy's lawsuit.

Of course, that law was illegal and nobody in the Attorney General's office would even try to enforce it.  I wrote a blog post about this: Attorney General of Vermont Acknowledges "Shaky Concept" in Charging Entergy for Vermont's Expenses  The Attorney General acknowledged that the the law was unenforceable.  The Bank of Entergy was closed to the state.

It's time for the state to acknowledge that that Bank of Entergy is still closed. I hope they acknowledge this before taxpayers (like me) once again fund a hopeless exercise in which Vermont attempts to change the role of the federal government and the NRC.

These state-sponsored exercises are expensive.

Sunday, December 29, 2013

The Agreement between Vermont Yankee and Some State Agencies

The Agreement

The Department of Public Service (PSD), the Agency of Natural Resources, and the Vermont Department of Health signed a Memorandum of Understanding (MOU) with Entergy on December 23.

The link is below (13 page pdf).

http://publicservice.vermont.gov/sites/psd/files/Announcements/VY_Settlement/VY_Settlement_Agreement_131223.pdf

The Missing Link

Christopher Recchia
Commissioner
Dept of Public Service
Understanding this agreement and commenting upon it will take some time. Right now, however, I want to point out that one important agency has not signed off on this yet--the Public Service Board.  For this agreement to take effect, the Public Service Board must grant Vermont Yankee a Certificate of Public Good (CPG) in accordance with the provisions of this agreement.

 The agreement gives the Public Service Board a deadline of March 31, 2014 for granting this certificate.

Section 2 of the agreement below:


Entergy VY and PSD shall jointly recommend to and shall support before the Board the issuance of CPG(s) effective as of March2l,2012, for: (1) operation of the VY Station through December 31,2014, and (2) storage of SNF derived from such operation, as requested by the second amended petition filed by Entergy VY in Board Docket No. 7862 on August 27,2013. Entergy VY and PSD will submit a Memorandum of Understanding ("MOU") to the Board, in the form attached as Exhibit A, in connection with those filings.

In the event that by March 31 ,2014, the Board has not granted Entergy VY a CPG that: (i) approves operation of the VY Station until December 31, 2014, and the storage of SNF derived from such operation; and (ii) approves the Parties' jointly filed MOU substantially in its entirety and contains conditions that do not materially alter, add to, or reject what is provided for by the MOU, each Party agrees that this Agreement may terminate, if such Party so determines in its sole discretion and provides written notice within ten (10) days of Board issuance of its order, whereupon each Party shall be placed in the position thatit occupied before entering into this Agreement, except that the obligations of paragraph 3(a) through (c) and the actions taken thereunder are final and shall not be affected by any termination.


Sections 3 a, b and c....this is an agreement that both sides (state and Entergy) promise not to appeal the court of appeals ruling in the major federal lawsuit. I blogged about this issue in The Second Lingering Lawsuit: The Attorney Fees.  I said that the state was unlikely to bring an appeal, since they had lost on the pre-emption issue in two courts.

Not Over Till It's Over

The day after the agreement was signed, I was interviewed by Pat Bradley of WAMC: Vermont and Entergy Reach Agreement on Future of Vermont Yankee Operations.

Here's my quote from that interview.

Public Service Board members Coen, Volz and Burke
See note below
Ethan Allen Institute Energy Education Project Director Meredith Angwin has worked in the power industry and pens the blog Yes Vermont Yankee. She notes that the Public Service Board, which has a case involving the plant, was not involved and expects some controversy to continue.   “What they really kind-of announced is that the Department of Public Service would advocate for this agreement before the Public Service Board. And the Department of Public Service carries a lot of weight. The Public Service Board still has to rule, but the intervenors will have plenty of time in front of the Public Service Board to say ‘no, no that’s a terrible idea, that’s a terrible idea.”

In other words, it's not over till it's over.

Note:  Coen has left the Public Service Board and been replaced by Margaret Cheney. Here's the new page with the new picture.    However, at the time of the Cheney appointment, I got the impression that Coen would continue to serve on any open dockets and Cheney would take over new dockets.  It is not clear to me which group of board members will be seated on the bench for this docket.  I will let you know when I find out.