David J. O'Brien

Commissioner

For Immediate Release
May 27, 2008
Contact: Stephen Wark
(802) 828-4021

Draft Energy Plan Released

Long-term renewable and low-carbon contracts, energy efficiency and energy conservation are highlighted

Montpelier, Vermont – The Department of Public Service released its public draft of the Comprehensive Energy Plan today, which outlines the state’s efforts to provide affordable energy, environmental responsibility and ongoing reliability.

The wide-ranging report contains more than 70 recommendations and focuses on strategies to maintain Vermont’s relatively low energy costs, including pursuit of long-term contracts with renewable and low-carbon energy providers, continued replacement of the state’s passenger fleet with hybrids and plug-in electric cars and improving energy efficiency in public buildings and homes.

“Affordable and reliable electricity is the backbone of economic growth.  In partnership with state agencies, utilities and other stakeholders, we have drafted a plan for public comment that captures best ideas and practices.  It is our expectation that the final plan will benefit from public comments and lay out a direction that incorporates the tenets of Governor Douglas’s energy policy: affordability, reliability and environmental responsibility,” said Commissioner David O’Brien. 

Vermonters will have an opportunity to comment on the plan, through a series of public meetings in the coming months. As part of Act 92 signed by Governor Douglas on March 19, 2008, a draft version of the Comprehensive Energy Plan will be opened for public comments at meetings to be announced.  The final plan is due to be completed by January of 2009.

“We are releasing this plan set against a backdrop of a turbulent worldwide energy picture.  Record crude oil prices are hitting Vermonters very hard at the pump and are creating tremendous anxiety for the next heating season,” O’Brien said. “Because of the rural and northern nature of our state, heating and transportation will continue to challenge finances, both individual and collective.”

The plan incorporates advice from the Governor’s Commission on Climate Change, Mediated Modeling, and the Vermont Energy Future Public Engagement Process. 

The long-term electric power contracts with Hydro Quebec and Vermont Yankee begin to expire in 2012; these agreements account for about two thirds of the State’s electricity, and provide among the lowest rates in New England.  While renegotiating these contracts is part of an overall strategy, the possibility of eventually displacing them in Vermont's portfolio will be a challenge.  “One of the challenges we face is replacing non-carbon emitting base-load sources of power such as Vermont Yankee and Hydro Quebec,” said O’Brien.  The Department of Public Service is working closely with utilities and other stakeholders to ensure a sound, diverse transition.”

Because this is a comprehensive energy plan, electricity is not at all the only issue that is addressed – home heating and transportation received attention as well. 

“About 45 percent of our state’s carbon emissions come from the transportation sector.  It is critical to Vermont’s economic and environmental future that we begin to transition to more efficient, less-polluting vehicles,” said Transportation Secretary Neale Lunderville.  “The emergence of electric-hybrid cars presents an opportunity, but they require affordable and reliable sources of baseload electricity to support them.”

Future energy choices will rest on Vermont’s renowned “green” record, said Natural Resources Secretary George Crombie.

“Vermonters have a strong environmental ethic, and our continuous investment in environmental stewardship has resulted in a situation where we scrub more carbon from our environment than we produce,” Crombie said.  “That said, Vermont can – and will – continue to reduce its carbon footprint and lead the nation by example.”

Recommendations from the Comprehensive Energy Plan can be best summarized through six cross-cutting themes.  They are:

Well-formed Regional and National Carbon Constraints – Vermont is on the leading edge in this area as an early signatory to the Regional Greenhouse Gas Initiative (RGGI), a program that will be the first mandatory cap-and-trade structure for carbon in the nation. The threat of global climate change has resonated with Vermonters, and it is clear that the state can do more to protect our environment, while ensuring an affordable future.

Transforming the Passenger Vehicle Fleet – With the skyrocketing cost of fuels and 45 percent of carbon emissions emanating from vehicles, the transportation sector presents many opportunities to improve our state’s affordability while protecting our environmental assets.  Plug-in electric vehicles, hybrids, and public transportation all contribute to the reduction of fuel consumption and pollution.

Improving Energy Efficiency in Buildings and Homes – Our state has some of the most forward-thinking and effective energy-efficiency programs in the nation.  While Vermont spends more money per capita on electric efficiency than any other state, there remain opportunities to leverage this mindset.  The Department is currently working on an all-fuels efficiency program that was authorized by Governor Douglas this year. 

Improving Regional Generation Source Diversity through Effective Cooperation – Just as we should individually strive to have variety in our personal financial portfolios, the state must also take steps to increase the diversity in its energy portfolio.  We are geographically and strategically well positioned to access energy from our northern partners in Canada.  Indeed, the provinces of Quebec, Newfoundland and Labrador, and New Brunswick all have major renewable or nuclear projects underway and are seeking customers in the United States.  Because we are still a regulated state, Vermont has the opportunity to negotiate with these, and other partners, for favorable long-term power purchase agreements.

Sound Replacements to Existing Major Electric Power Contracts – Two-thirds of our power comes from Hydro Quebec and Vermont Yankee.  These are reliable sources of power that have significantly aided in maintaining the very small carbon footprint our state enjoys, as well as relatively low power costs.  When these contracts expire, we must ensure that the replacements have similar profiles to ensure we do not take any steps backward. 

Constructing Local and Distributed Generation – The closer a power source is to the demand, the less power is lost in transmission.  Additionally, the use of smaller, “distributed” generation throughout the state can lend to greater system reliability, while bolstering local economies.  As we further chart our energy future, serious consideration must be given to distributed generation as a strategy to address needs in growth centers within the state.

With the release of this draft plan complete, the Department will be scheduling a series of public meetings and comment sessions across the State of Vermont. 

A full version of the draft plan can be found online at:

http://publicservice.vermont.gov/index.html

Special thanks must be extended to Mr. Riley Allen and his team from the Department of Public Service, the author of this Comprehensive Energy Plan.  Riley’s dedication and commitment has helped further a vision for our Energy Future.

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