PSB approves Phase 1 of Vermont Gas' Addison-Rutland natural gas project

Vermont Gas received approval Monday from Vermont regulators to construct Phase 1 of the Addison Rutland Natural Gas Project. After reviewing thousands of pages of evidence and testimony from 45 witnesses, the Public Service Board agreed that Phase 1 of the Addison Rutland Natural Gas Project is in the public good.
"We are very pleased the Vermont Public Service Board's thorough review of the project has found it to be in the public interest," said Don Gilbert, President and CEO of Vermont Gas. ‘ "This decision will make it possible to extend the same economic and environmental benefits of natural gas service to more Vermonters in Addison County. ‘ We look forward to helping more Vermonters to cut their heating bills in half and reduce their greenhouse gas emissions, as we have in Chittenden and Franklin counties for almost 50 years."
Phase 1 of the Project will extend the Vermont Gas transmission network south to Middlebury, and will bring natural gas service to Monkton, Ferrisburgh, Vergennes, New Haven, Bristol, Middlebury, and East Middlebury. The Project will cut heating costs in half for homeowners and businesses, and reduce greenhouse gas emissions by up to 25 percent by providing safer, cleaner, and significantly more affordable natural gas service to homes and businesses in Addison County.
"The availability of natural gas at our Middlebury cheese and whey facility will significantly lower our energy costs and increase the returns earned by the dairy farm families who own Cabot," said Bob Wellington, Sr. Vice President at Agri-Mark/Cabot Dairy Cooperative. ‘ "Natural gas service will also eliminate the current use of fuel oil being trucked in daily so it is a win-win for the environment as well. ‘ It is important to get this pipeline in place as soon as possible."
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Governor Peter Shumlin issued the following statement:
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‘The Vermont Public Service Board got it right. This project gives our businesses and industries, as well as residential homes, a fuel choice that is cleaner and cheaper than what many of them are currently using. That’s good for growing jobs and strengthening economic development in that region, just as it has been for Chittenden and Franklin Counties for decades. I am very pleased with the Board’s decision.’
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Mel Hawley, City Manager for the city of Vergennes, was delighted with the Board's decision. ‘
"Vergennes made it clear on December 10th that they want the benefits that Chittenden and Franklin counties have enjoyed from natural gas service," said Hawley. ‘ "We have 1135 dwelling units and about 200 businesses in Vergennes and almost all of them will have access to natural gas service. ‘ The only area that will not receive service in 2015 are two houses and one business at the remote north end of Comfort Hill. ‘ So other than these three properties, everyone else will have access to Vermont Gas. "
In the ruling, the PSB said that:
* ‘ ‘ ‘ ‘ The Project "will create substantial benefits for the State of Vermont. ‘ Natural gas presently has a price advantage of more than 40% over either fuel oil or propane, so that once introduced, it is likely over time to displace the consumption of these more costly fossil fuels. Based on projections of customers switching to natural gas service, VGS anticipates that over $200 million in direct and indirect savings (including greenhouse gas emission benefits) will be realized over the next 20 years. These direct economic savings are far in excess of the estimated $86 million cost of the Project. The Project will also provide incremental tax revenue to towns along the route, thus increasing the direct economic benefits for those towns and the state. Overall, the Project is expected to afford Vermonters in the new service areas lower energy costs than under the current fuel options and any presently known alternatives; thus, we conclude that the Project is needed";
* ‘ ‘ ‘ ‘ ". . . the evidence shows there is a reasonable basis to conclude that the increased use of natural gas in substitution for fuel oil or propane will result in less greenhouse gas emissions than the fuels it would displace";
* ‘ ". . . judging by the current uses of renewable energy, the introduction of natural gas is unlikely to displace the use of more renewable energy to generate electricity."
The PSB decision includes several conditions that Vermont Gas will be required to meet, in connection with the Project's construction and implementation. ‘ The Company will work with its regulators and other stakeholders to ensure these conditions are satisfied.
Vermont Gas serves almost 50,000 customers in Franklin and Chittenden counties and is currently working to expand service into Addison and Rutland counties through the Addison-Rutland Natural Gas Project. The company's long heritage for safe and reliable operations includes its award-winning energy-efficiency programs, which reduce energy use while saving current customers $13 million annually for homes and businesses. ‘ For more information about the Addison-Rutland Natural Gas Project, visit www.addisonrutlandnaturalgas.com.
South Burlington, Vt. - December 23, 2013, Vermont Gas