TransCanada, which owns a series of hydroelectric dams on the Connecticut River, announced last week that it will sell the dams.
Vermont would be wise to give careful and thorough consideration to the notion of purchasing the dams, adding that electricity to the state’s clean energy future.
TransCanada bought the dams from USGen New England in 2005 when that company went bankrupt. At that time, the state of Vermont gave serious consideration to purchasing the dams but ultimately did not put forth a competitive bid. TransCanada bought the dams for $505 million.
The dams on the Connecticut River produce about 550 megawatts of power annually – enough to power close to 12,000 homes. That’s a lot of power.
The hydro system includes dams in Wilder, Bellows Falls and Vernon. It is the largest hydro facility in New England.
At the time, state officials argued that Vermont could not afford to buy the hydroelectric dams. Proponents argued that the state could not afford not to buy the dams.
In 2005, energy prices were high; the U.S. was involved in two messy and elective wars in the Middle East. When Hurricane Katrina devastated the Gulf Coast, energy costs were further stressed.
Energy costs have dropped significantly, but the global oil market is unstable and in flux. Just because energy is cheaper now doesn’t mean it is OK to use more fossil fuel and create more carbon emissions.
Since 2005, Entergy Vermont has lost its bid to keep the Vermont Yankee nuclear power plant open and the plant will close next year leaving the state in need of a source of clean, affordable power.
If the state pursues purchasing the dams, careful thought needs to be given to the age of the dams, their current bill of health, their ongoing maintenance needs and the need to relicense the dams by 2019.
Further, the cost of creating the “clean” hydro energy needs to be balanced with the impact of dams on river health and the question of whether rivers should be dammed at all.
The Legislature and the administration and the state’s energy leaders need to give this careful consideration.
