LAMOILLE COUNTY TRANSMISSION UPGRADE PROJECT

Information Resources

VERMONT DEPARTMENT OF PUBLIC SERVICE

03.30.05
The power problem
Lamoille's critical electric need dates back three decades

BY LISA MCCORMACK, STOWE REPORTER

Stowe Electric Department’s decision last week to cease guaranteeing power for new construction raised an alarm on a problem first identified in 1974.

In the three decades since, utility companies in Lamoille County have made several temporary fixes to the power system, but they have consistently balked at what experts say is the only long-term solution – building larger lines into the county to provide substantially more electricity to the local power grid.

The stumbling block has always been the cost of new lines. It has risen from $2.6 million in 1974 to a current estimate of more than $20 million for a new and controversial power line from Duxbury to Stowe and system upgrades.

Then in 2001, with Stowe Mountain Resort’s expansion in mid review and approvals for several large-scale developments pending, Stowe Electric decided it had to take action.

It contacted the Vermont Electric Power Company, asked it to create a design for a 115 kilovolt line, and offered to pay for the state permit fee application and a large share of the construction costs. VELCO finished its planning work in 2003 and filed its proposal for the new line in 2004.

“Stowe deserves credit for pushing the request forward and taking the bull by the horns to make the project happen,” said VELCO Manager of Public Relations Dave Mace.

VELCO studies power needs, and proposes, builds and owns power lines, while Green Mountain Power provides the electricity to Stowe’s system, which is managed by the Stowe electric department.

Small patches, bigger problem
Back in 1976 VELCO recommended that the four utility companies serving Lamoille County connect to one another to serve as back ups should one or more system run into problems or get overloaded. VELCO warned that this would only be a temporary fix and that it would be necessary to bring in substantially more power. As far back as 1974 state and local officials were talking about a 115kV line from Duxbury, which is what is currently proposed.

The Vermont Department of Public Service, which oversees the state’s utility companies, agreed with VELCO’s assessment. A document circulated by the department at that time states that while the emergency tie would delay the expenditure on the 115 kV line, it would eventually have to be done.

The emergency tie and other smaller temporary fixes were completed in the late 1970s. They helped to maintain reliability, but with continued development and demand on the system its inadequacies again became apparent in 1986.

It was at that time that the Public Service Board demanded that Lamoille County utility companies convene to work out a solution to the problem. Public service board records show that numerous meetings were held, but no resolution was reached, based in large part on disagreements over the cost of the improvements would be divided up among the utility companies serving the area, Green Mountain Power, Morrisville Power and Light, Stowe electric and the Hardwick electric department.

More studies were conducted by Green Mountain Power, VELCO and Central Vermont Public Service from 1987 through 1992, all showing the need for system upgrades to maintain the reliability of the system.

No action was taken, however, until 1993 when Morrisville Water and Light took the lead and filed an application to rebuild the power line that runs from Johnson to Morrisville.

When that permit was granted in 1994, state regulators again warned that this was yet another temporary fix and that the 115 kV line was still needed.

Documents from the Department of Public Service at the time stated: “If the proposed project is not built, development within Stowe’s service territory will be significantly hampered.”

The Morrisville Water and Light project was completed in 1996 and was the last significant power line upgrade in the county.

Then came the proposed $300 expansion at Stowe Mountain Resort. Identifying the need for more power, the District 5 Environmental Commission during Act 250 proceedings made energy demand – and supply shortages – a top priority.

A 1999 study by Central Vermont Public Service found that Stowe Mountain Resort’s master plan would add 13.8 megawatts of demand over a decade, leading up to 2008. Stowe’s grid could safely handle up to about 75 megawatts, and it was already being stressed.

The study also found that: “...The existing Stowe Electric system and Northern Loop configuration cannot carry the additional load proposed for SMR without some type of system upgrades.”

As a result of increased electrical demand, the environmental commission concluded in its land use permit to the resort that all new construction should be reported to and approved by the electric department annually.

The proposed upgrade would increase Stowe’s electric capacity by about 25 megawatts. Now, as Stowe Electric and other area utilities wait for state approval on the new 115 kV all agree that they can’t wait much longer.

“This problem is not going away,” Richard Hinners, a VELCO electrical planning engineer, said at a recent hearing for the project. “For each increase in load over the past 30 years, an incremental transmission upgrade has been proposed and implemented. No one fix has been so successful that a subsequent need has not been identified due to additional load growth.”

When will demand exceed supply
Just how many new construction projects—or more specifically, how many new homes—it will take to push the system serving Stowe past the breaking point is hard to determine, experts say.

“It’s not a finite amount where you get to a certain point, and when it’s gone it’s gone,” Mace said. “As far as a single house is concerned, it’s like a grain of sand on the beach. But, the cumulative effect is that it weakens an already stretched system.”

Unlike like water which just runs out, electric supply gets thinner and thinner, leading to increased service problems and brownouts.

Currently, the entire Lamoille County electrical grid, known as the Green Mountain Power Northern Loop, is at its capacity of 75 megawatts. At that level a single event such as a fallen power line or damage to a key piece of equipment could cause brown outs or black outs in the Stowe area, Mace said.

The problem is entirely local and is caused by reliability issues within the Lamoille County grid, unlike the Northwest Reliability Project in Chittenden County, which involves the overall electric grid in Vermont, according to Mace. That is why local utility companies must cover the cost of the new line.

Just how much each utility company will be responsible for will be determined once the state has issued a permit for the project.


Reprinted with permission of the Stowe Reporter


DOCKET 7032
CASE SCHEDULE

02.09.05
Public hearing

02.18.05
Deadline for intervention requests

03.10.05
Site visit

03.18.05
Last date for filing discovery requests on petitioners

03.28.05
Last date for petitioners’ prefiled direct testimony and exhibits

04.11.05
All parties other than petitioners prefile direct testimony and exhibits

05.02.05
Last day to serve discovery on April 11 prefiled testimony and exhibits

05.12.05
Last day for discovery responses

05.23.05
All parties prefile rebuttal testimony and exhibits

06.03.05
Last day to serve discovery on rebuttal prefiled testimony and exhibits

06.13.05
Last day for responses to rebuttal discovery

06.27.05
All parties prefile surrebuttal testimony and exhibits

07.06.05
Technical hearing

07.07.05
Technical hearing

07.08.05
Technical hearing

07.18.05 (week of)
Technical hearings

08.08.05
Briefs due

08.22.05
Reply briefs due

10.19.05
Proposal for decision issued

11.04.05
Comments due on proposal for decision

12.07.05
Oral argument on proposal for decision


BOARD SCHEDULING ORDER (PDF)

SCHEDULE CHANGE MEMO OF 04.14.05 (PDF)