In an open letter to Governor Shumlin, leading organizations representing industry, labor, and energy stakeholders today expressed concern about the closing window of opportunity to allow the Public Service Board to complete its docket on Vermont Yankee's continued operation beyond 2012, and the serious economic consequences for Vermont if the plant is not allowed to operate under a renewed license.
Absent realistic and viable alternatives for more affordable and reliable power, Associated Industries of Vermont, the International Brotherhood of Electrical Workers, and the Vermont Energy Partnership urged Governor Shumlin to work with the Legislature and allow the Public Service Board to complete its outstanding docket on relicensing and determine whether continued operation of Vermont Yankee is it the best interest of the state.
The text of the open letter follows:
An Open Letter to Governor Shumlin
February 3, 2011
Dear Governor Shumlin:
We are writing out of serious concern about the impact Vermont Yankee's shut
down in 2012 would have on our electric rates and the resulting cost
increases for Vermont employers and risks for the welfare of working
Vermonters and their families.
If Vermont cannot secure sufficiently reliable alternative sources of power
at a lower price than a new power purchase agreement with Vermont Yankee,
the responsible action now is for the Legislature and your Administration to
allow the Public Service Board to make a decision in its docket on whether
Yankee's continued operation is in the best interest of Vermont.
Realistic, viable alternatives to Vermont Yankee that are more affordable
and reliable are not apparent. If your Administration can identify such
alternatives, however, we urge you to do so now, because time is running
very short for the Board to act soon enough for Yankee to continue to
operate past 2012.
The new contracts with Hydro-Quebec appear competitive, but we cannot expect
HQ would replace their own expiring contracts and Vermont Yankee, nor would
it be prudent to have a single company supply such a large portion of our
electric portfolio. Even the last public offer made by Yankee in December
2009 would be highly competitive against realistic alternatives today. With
the continued negotiations between Yankee and Vermont's utilities since
then, it is reasonable to expect any final agreement will be more
competitive than the HQ deal.
We cannot relegate the replacement of Vermont Yankee to the vagaries of the
New England market. Although relatively competitive with Yankee at the
moment, market prices cannot be expected to remain so for 20 years, and just
the risk alone of high and unstable prices makes this an unacceptable
alternative. It is also worth noting that relying on the regional market
would undermine Vermont's extremely low-carbon electric portfolio -- a high
priority for many Vermonters.
Finally, we cannot rely on Vermont Yankee operating under some form of
federal preemption or related legal action -- it would appear likely that
such a scenario could put at risk any advantageous power contracts or other
special benefits for Vermont.
Without more affordable and reliable alternatives at hand, the consequences
of Vermont Yankee shutting down in March 2012 will be extremely grave.
Vermont will face 1) increased electric rates from more expensive
replacement power than Yankee would offer, 2) increased rates from the cost
of projects required to shore up the electric grid's reliability, 3)
possible periods of reduced reliability if such projects are not completed
in time, and 4) the loss of well over 1,000 jobs from Yankee itself,
companies doing business with the plant, and other businesses facing higher
electric rates.
Indeed, replacing jobs lost if Vermont Yankee shuts down appears as
difficult as finding acceptable power alternatives. Decommissioning jobs do
not come close to those connected with continued operation in number,
average wage, or duration. Renewable energy projects have been shown to
create comparatively few jobs, especially beyond construction, and the cost
and permitting obstacles to the enormous scale of development that would be
necessary to attempt to replace all the long-term jobs lost from Yankee's
closure make this solution extremely unrealistic. Moreover, development and
power costs would only exacerbate job losses owing to increased electric
rates.
We understand that you and legislative leaders have long opposed the
continued operation of Vermont Yankee. But you have also put jobs and the
economy at the forefront of your agenda, and stated publicly that Vermont
businesses need the most affordable and reliable power that Vermont can
find. These positions are not compatible with forcing Yankee to close if
there are not more affordable and reliable alternatives.
This might be a difficult decision for opponents of Vermont Yankee, but
responsibility for Vermont's economy and the welfare of working Vermonters
and their families is at stake. Absent better alternatives, we urge you to
work with the Legislature to allow the Public Service Board to make a
decision on Vermont Yankee before the clock runs out and this option is
lost, with serious negative consequences for decades to come.
We sincerely look forward to working with you and supporting you in this
effort.
Associated Industries of Vermont
International Brotherhood of Electrical Workers
Vermont Energy Partnership
Groups urge Shumlin to work with Legislature to allow PSB to act on Vermont Yankee's continued operation
Submitted by tim
on