3 utilities exploring new power sources
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By Daniel Barlow Vermont Press Bureau - Published: January 13, 2009
MONTPELIER – Vermont's three largest electrical utilities announced Monday they have received dozens of bids from prospective new power supplies as they diversify how the state powers its homes and businesses.
Central Vermont Public Service, Green Mountain Power and the Vermont Electric Cooperative issued notices in November that they were looking for up to 100 megawatts of new energy – enough to power about 50,000 homes.
The companies would not say Monday who had bid on the contract, only that the dozens of offers they received so far include a range of electrical sources. Each of the three companies is expected to decide by this spring who to contract with for the new energy.
Dotty Schnure, the spokeswoman for Green Mountain Power, said the company is accepting bids from all types of sources, but noted that its criteria is that the power be inexpensive, have a low carbon impact and be reliable.
"There are a lot of different options here and right now we have to weigh the pros and cons for each one," she said. "We're just starting to dig into the proposals now."
A joint statement by the trio of power companies on Monday stated that the bidders include "power marketers, energy developers, existing and to-be-built power plant owners and banks." In total, the bids add up to about 1,000 megawatts of energy – 10 times the amount that they are looking for.
CVPS and Green Mountain Power are each hoping for 40 megawatts of new power and the Vermont Electric Cooperative is eyeing about 20 megawatts.
"Some of the bids are quite attractive environmentally, many offer significant baseload options, and some are unique and worthy of considerable consideration," the statement concludes.
Two of the electrical companies are also waiting to hear back on a second proposal for new energy that looks beyond its current contracts with Hydro-Quebec and Vermont Yankee nuclear power plant. Bids are due at the end of January for possible replace-ments.
Contracts for energy from those two companies all expire between 2012 and 2016.
CVPS and Green Mountain Power are seeking 150 megawatts of new energy outside of Hydro-Quebec and Vermont Yankee, although the companies are still in negotiations with those two entities for new contracts.
The future of Vermont Yankee is particularly unclear as the plant's license to operate ends in 2012, although the plant's owner, Entergy Nuclear, has applied for an extension of 20 years. The relicensing is expected to be a key issue for the Vermont Legislature this year.
Contact Daniel Barlow at Daniel.Barlow@timesargus.com.
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