June 15, 2005

Demand for Natural Gas Brings Big Import Plans, and Objections - New York Times

Energy policy is of grave concern to the economic well-being of the U.S. The country is not well-served without an energy policy that recognizes demand, viable sources, population and economic growth, but little Congressional activity is evident.

Here in Vermont, the liberals and environmentalists think that new sources utilizing wind will help, but they can't agree to place 300' turbines on the ridgelines and spoil the view while producing only a drop in the bucket of our energy needs. Conservation is a worthwhile goal which could save far more than the turbines could produce. But that requires significant investment and behavioral changes, a difficult solution.

Meanwhile, we face the stark reality of the license expiration in 2012 for the Vermont Yankee nuclear plant, which produces 1/3 of Vermont's needs. In addition, our contract with HydroQuebec which provides another 1/3 expires in 2016. The 267 page Vermont Energy Plan contains lots of 'warm fuzzies,' but few concrete action steps that can be implemented quickly.

Here's what the Vermont Plan's executive summary says about natural gas:

"There is considerable unrealized potential to replace other fossil fuel use with natural gas in Vermont.
The current pipeline infrastructure is the primary constraint to the expansion of use. A phased expansion by Vermont Gas Systems in its existing territory is underway. Additional transmission
pipelines through Vermont are another option, although two proposals in the recent past for new pipelines in Vermont have not come to fruition. Generation from natural gas is especially attractive if cogeneration or new technologies such as the latest combustion turbines or combined cycle plants are used, all of which improve efficiency and emissions.
New pipeline expansion could provide an alternative source of energy and additional options for gasfired generation. Vermont could see natural gas become available in the Northeast Kingdom from a pipeline that is planned to go through the northeast corner of the state. Natural gas service also is possible in the southwest part of the state. A major factor in the expansion of the natural gas transmission system in Vermont is siting electric generation facilities that will use natural gas. Such generation facilities serve as Â?anchor tenantsÂ? and justify the expense of expanding the transmission system. Without transmission expansion, VermontÂ?s future natural gas usage is constrained by the size of the present transmission system Natural gas is used to heat homes, schools and hospitals. Equally important are the commercial and industries customers that depend on adequate supplies of natural gas at predictable prices to produce many essential products and services used every day. There should be a focus on all energy options, including: fuel choice mixture and flexibility; gas supply source diversification; faster permitting for infrastructure modernization and expansion, including LNG facilities and pipelines; development of new technologies and natural gas market transparency and efficiency.
Under a rate case settlement reached between the DPS and Vermont Gas in the Fall of 2003, Vermont Gas agreed to accelerate its expansion of natural-gas service in Vermont, whether from its existing system, from other natural-gas pipelines or local-distribution companies or by other means, and to work cooperatively with the DPS and other agencies of the State of Vermont to promote the extension of natural-gas service throughout Vermont where economically feasible. Additionally Vermont Gas has agreed to increase its capital investment in Vermont over and above historical levels and, for 2005, above the amounts that were originally planned."

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