The Green River Reservoir is one of the "crown jewels" of Vermont's public spaces and is famous for its loon population and as a low-impact recreation site. ANR photo.
Agreement Advances Water Quality, Recreation, and Long-Term Certainty
Vermont Business Magazine Morrisville Water & Light (MWL), the Vermont Agency of Natural Resources (ANR), Vermont Natural Resources Council (VNRC), American Whitewater, and the Vermont Council of Trout Unlimited today announced a comprehensive settlement agreement that resolves MWL’s request to decommission the Green River Reservoir hydroelectric facility at this time and establishes a clear compliance schedule for the Green River, Morrisville, and Cady’s Falls hydroelectric developments as the project moves toward a new Federal Energy Regulatory Commission (FERC) license.
“The settlement provides a responsible path forward for our ratepayers and for Vermonters who value the Green River Reservoir,” said Scott Johnstone, General Manager of Morrisville Water & Light. “It resolves the immediate uncertainty around decommissioning, supports relicensing, and lays out a clear compliance schedule aligned with Vermont’s water quality requirements, without placing an unfair financial burden on MWL’s 4,000 ratepayers for a resource that serves the entire state. Importantly, it also creates time and structure for the state’s review of reservoir drawdown standards, an issue that has been central to the long-term future of the reservoir.”
Under the agreement, MWL will withdraw its request to decommission the Green River Reservoir Development, and the parties will jointly support issuance of a new FERC license consistent with Vermont’s Section 401 Water Quality Certification (WQC).
Johnstone said at Governor Scott's weekly press conference today that he is relatively confident FERC will go along with the plan and they will respond by the summer or early fall. He emphasized that despite his confidence there is no guarantee FERC will sign off on the plan.
The governor said that the option for the state to take over the facility was "not economically feasible" but that all the interested parties collaborated on that path forward. The agreement will improve water flows while also allowing the hydro-electric facility to keep operating to make the facility affordable for MW&L ratepayers.
The settlement sets timelines for achieving in-river flows that are protective of fish and their habitats, limiting timed drawdowns from the reservoir, and scheduling whitewater releases, while committing ANR to complete a public process by January 1, 2029, to examine Vermont’s current rules for protecting shoreline habitats, including whether manmade reservoirs should have different requirements than natural lakes.
“The Green River Reservoir is a beloved resource for Vermonters and visitors alike, attracting paddlers and campers each year,” said Agency of Natural Resources Secretary Julie Moore. “This settlement helps ensure that these recreational opportunities remain available, while also better protecting habitat and water quality both in the Reservoir itself and downstream river reaches. Finding this balance required creative problem-solving and good faith from everyone involved. We're pleased to have reached an agreement that serves both the environment and the community.”
The Green River plant can produce 800-900 kilowatts of power when operating (the Vermont Yankee nuclear plant had an output of 605 megawatts), but flow restrictions only allowed it to generate about 1 million kilowatt hours of electricity a year. By comparison, the Bellows Falls (Connecticut River) plant produces 264 million KWH per year from a capacity of 40.8 MW to 49 MW. And Burlington Electric’s Winooski One station is a 7.4 MW plant producing 30 million KWH a year.
The state daily load requirement is in the 600 MW to 800 MW range with an annual consumption of 5.5 billion KWH.
There are about 85 total hydroelectric stations in Vermont and something like 1,000 or more dams (no one really knows) of any type in Vermont. Dilapidated dams create environmental degradation and flood hazards. Even those in good shape restrict waterflow and aquatic life and produce sediment. The cost to remove all the ones that probably should be removed would be astronomical.
Key elements of the settlement include:
- Withdrawal of the decommissioning request: Upon approval of the settlement by FERC, MWL will withdraw its request to decommission the Green River development at this time.
- Support for relicensing and the 401 WQC: The parties agree to support issuance of a new FERC license and a 40-year license term consistent with the final 401 WQC for the project.
- Interim Flow Management Plan: MWL will finalize and implement an Interim Flow Management Plan approved by ANR no later than July 1, 2026.
- Whitewater releases: MWL will submit an Interim Whitewater Release Plan by March 31, 2026, and implement a Whitewater Release Plan approved by ANR by July 1, 2026 (or the date of license issuance, whichever is later), consistent with Vermont Supreme Court direction.
- Compliance schedules for facilities: The agreement establishes phased schedules for improvements and compliance at Morrisville and Cady’s Falls (beginning as early as July 1, 2026 or license issuance) and at Green River (beginning July 1, 2029 or 36 months from license issuance, whichever is later).
- State-led review of reservoir drawdown standards: ANR will complete a public process by January 1, 2029 examining reservoir drawdown requirements under the Vermont Water Quality Standards. Depending on the outcome, MWL may seek amendments to the 401 WQC and FERC license—or, if standards are not changed, the agreement preserves MWL’s right to request decommissioning and/or convey the dam to another entity.
“This settlement provides a durable framework to protect water quality while ensuring the hydro facility can operate under enforceable timelines,” said Jon Groveman, Policy & Water Program Director at the Vermont Natural Resources Council. “It reflects years of public engagement and legal decisions affirming that hydropower operations must meet strong water quality standards and provide meaningful ecological protections. We’re pleased the parties have reached agreement on a path that centers river health and public accountability.”
“Vermont’s rivers are public trust resources that are protected to maintain heathy waters that provide recreation opportunities and support its outdoor recreation economy,” said Bob Nasdor at American Whitewater. This agreement ensures that the paddlers from throughout the region will be able to enjoy the exciting rapids along the Green River and protect water quality under a new federal hydropower license.
“Healthy rivers support healthy fisheries and Vermont’s outdoor recreation,” said Jared Carpenter with the Vermont Council of Trout Unlimited. “This agreement establishes enforceable steps to improve conservation flows below the dams and ensures viable aquatic habitat will be maintained even while power is being generated. We look forward to continued implementation and oversight to ensure the commitments in this settlement translate into lasting improvements on the Lamoille and Green Rivers.”
The settlement agreement will be filed with FERC, along with an explanatory statement, in the project’s relicensing docket. The agreement remains in effect for the term of the new FERC license and is enforceable to the fullest extent permitted by law.
“We’re delighted that the parties have reached an agreement that ensures that Green River Reservoir will continue to exist while allowing Morrisville Water & Light to keep generating clean, renewable power,” said Sally Laughlin, President of Friends of the Green River Reservoir. “This outcome provides stability for the reservoir and reflects a shared commitment to stewardship and sustainability. Moreover, it provides for the long-term preservation of this crown jewel of Vermont’s State Parks, a valuable and unique place for recreation and renewal. Congratulations to all involved from all of us who treasure this place.”
Scott Johnstone, General Manager of Morrisville Water & Light discusses the settlement at Governor Scott's regular press conference Wednesday morning. Teams screenshot. Click image to watch ORCA Media video.
Montpelier/Morrisville, Vermont - 2.11.2026
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