Editor’s note: This commentary is by Paul Ralston, of Middlebury, who is the founder of Vermont Coffee Co. and the co-founder of Vision to Action Vermont. He is a former member of the Vermont House of Representatives.
[R]ecently five of the six New England governors met to discuss future energy projects in the region and possible areas of energy collaboration. One project, already moving through Vermont’s Public Service Board (PSB), would bring more Canadian hydroelectric power to Vermont and other New England states. The PSB describes this project as “installation and operation of a high-voltage, direct-current (HVDC) underwater and underground electric transmission line with a capacity of 1,000 MW, a converter station, and other associated facilities, to be located in Lake Champlain and in the Counties …”
Installation of a large transmission line for Quebec’s reliable and clean hydro power could rapidly advance Vermont’s goals for renewable energy – something I favor – I just wonder if there isn’t a whole lot more Vermont could get from this arrangement.
I’m thinking transportation, trade and transmission.
What if, instead of burying a power line under Lake Champlain, the line was placed under the state-owned railroad right of way – one leg of which runs nearly the whole length of the western side of the state. What if, during the construction that will be necessary no matter where the line is laid, the Western Rail Corridor is completely upgraded and modernized as part of the project. And, what if a few remaining pieces of rail line were enrolled allowing trains to travel swiftly through Vermont all the way to Montreal. Perhaps even New York or Boston would want to connect to such a rail line.
The most important thing Vermonters need to do is insist that any deal affecting Lake Champlain require legislative approval, not just the approval of the three-person Public Service Board.
And, what if the trains running through Vermont were powered by renewable hydro electricity.
The proposed financing of this project reveals some interesting clues to the possibilities for Vermont. Quebec has the capacity to produce huge amounts of hydro power – way more power than they can possibly sell without a transmission line through one of the Northeast states that gives the province access to larger markets. Many states have passed or are considering “renewable portfolio standards” that mandate increasing percentages of power to be purchased from renewable sources. When governments are driving a market, that market will thrive. Investment in the transmission of hydro power is nearly guaranteed to produce handsome returns, and those returns will continue on and on.
What if Vermont and Vermonters could earn a piece of that return on investment? True, the current proposal will create some revenue for Vermont, but big questions remain about whether the state can earn any property tax revenue for the under-the-lake scenario. Vermont’s rail right of way has some financial value as a freight corridor, but open that right-of-way to an electric transmission corridor, and the value soars. Vermonters may be willing to invest use of this right-of-way in a venture where they earn a small return on the electricity transmitted to states beyond Vermont. Vermonters may also be willing to purchase tax-deductible bonds that help fund the construction, the train service, or other elements of a larger plan. Big Wall Street hedge funds are willing to put up the money, but investing close to home in a solid market could be very attractive to Vermonters.
Yes, there are challenges to such a project. I’m sure there will be technical issues to overcome. But I believe the challenges of a land route with the attendant trade, transportation and economic benefits will be far more attractive than a solution that encroaches on our lake.
So, what should we do? We need to think this through carefully and have an open, public discussion. The most important thing Vermonters need to do is insist that any deal affecting Lake Champlain require legislative approval, not just the approval of the three-person Public Service Board. Three people – no matter who they are — should not decide the “what and where” of Vermont’s energy future, let alone transportation, economic development, and potential affects on tourism in the state.
