Supporting Burrillville gas plant becoming politically untenable


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20160301_134831Politicians like Governor Gina Raimondo and Senator Sheldon Whitehouse, who want to position themselves as environmentalist elected officials, are finding that supporting plans to expand fossil fuel infrastructure is a losing proposition.

Raimondo, who came out early and strong for Invenergy’s Clear River Energy Complex, a $700 million dollar gas and oil burning plant in Burrillville, has been under continued pressure from environmentalists to end her support. When the Governor attends a public event, there’s about even odds that at least one protester will be there holding a sign asking her to change her position.

Yesterday Raimondo was greeted by three power plant protesters at the Hope Artiste Village in Pawtucket while on her way to a press conference. In the video, the Governor invites Nick Katkevich of FANG (Fighting Against Natural Gas) to walk with her as he asks her if her position on the plant is changing. (It isn’t.)

Even when Governor Raimondo goes out of state, she is confronted by environmental activists fighting against fracked gas. During her recent trip to Washington DC Raimondo engaged in a public discussion on climate change with Pennsylvania Governor Tom Wolf. Pennsylvania is a state heavily invested in fracking. According to Nicholas Ballasy of PJ Media, “The moderator of the discussion… took just two questions from the audience before abruptly ending the event after the protesters interrupted. The protesters held up signs that said ‘Gov. Tom Wolf: Ban Fracking Now’ with the Food and Water Watch Fund’s logo on them.”

Though Raimondo was not the target of this protest, she must know that the plant in Burrillville will depend on the fracked gas coming out of places like Pennsylvania, and that the environmental devastation fracking wreaks there will be partly her fault if she continues to support Clear River.

In the video of the interruption below, you can see Raimondo seated behind a sign that says, “Climate and Clean Energy.”

When Invenergy proposed the new power plant, Raimondo must have seen it as a good idea. Energy prices in Rhode Island were high, construction jobs scarce, and the verdict on gas was still somewhat up in the air. All that has changed recently.

The power plant is not needed, as shown by the recent ISO New England Forward Capacity Auction. As the Conservation Law Foundation demonstrated electrical rates in Rhode Island are dropping, and the proposed plant has nothing to do with this drop.

The construction jobs on offer in Burrillville, which were not that many or for that long, are not as needed since Raimondo signed the Rhode Works legislation to rebuild our bridges and roads. Many of these jobs would go to out of state contractors if the power plant is built, and would not have benefited Rhode Islanders any way.

The evidence against fracked gas as a “clean energy source” and a “bridge fuel” is amassing. Countless studies are now showing that methane gas leaks erase the benefits of fracked gas.  Worse, “natural gas plants don’t replace only high-carbon coal plants. They often replace very low carbon power sources like solar, wind, nuclear, and even energy efficiency. That means even a very low [methane] leakage rate wipes out the climate benefit of fracking.”

Finally, the fracked gas bubble is beginning to burst. As I pointed out in a previous piece, there isn’t as much frackable gas as was first assumed, and the price of gas will soon rise even as oil prices drop. With the proposed Burrillville plant designed to burn gas or oil, whichever is cheaper and more available, we may find ourselves with a brand new state of the art oil burning plant.

Raimondo wants to be seen as a leader on the climate. She serves as as vice chair of the on the Governors’ Wind and Solar Energy Coalition (GWSC). She’s one of 17 governors to sign the Governors Accord for New Energy and she was at the conference in DC, mentioned above. But it’s not enough to divest financially from fossil fuels: she has to divest herself politically as well.

Political support for fracked gas is eroding fast. Senator Sheldon Whitehouse, who came out in support of the plant in an interview with Ted Nesi, walked back his support Friday morning in an interview with Bill Rappleye, saying it would be unethical for him to take a position.

That the Environment Council of Rhode Island, a coalition of 62 different groups that protect the environment in the Ocean State “strongly opposes the proposal” may have had something to do with Whitehouse’s shifting position, but why this message hasn’t penetrated the Governor’s office is a mystery.

Asked yesterday about her position on the proposed plant, Senate President Teresa M Paiva-Weed said that she hasn’t formulated an opinion because there’s no legislation on it before the General Assembly. Sure, that’s a political dodge, but Paiva-Weed’s not backing the plant either. Her Green Jobs RI report says nothing about expanding fossil fuel infrastructure.

There is a chance that our political leaders will succumb to the will of the fossil fuel companies and force this plant down our throats, like they did with 38 Studios or tried to do with the PawSox stadium. They will pretend to believe the lies of the fossil fuel industry and stick us with a power plant that we don’t need, that is ruinous to the local environment and will destroy the climate of the planet. If so, their legacy will be that of destroyers, not environmentalists.

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DEM Director Coit’s Invenergy visit calls ‘fire wall’ into question


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clear river energy center
Clear River Energy Center

UPDATE: Todd Anthony Bianco, Coordinator of the RI Energy Facility Siting Board, said the following in an email:

“A site visit of the Invenergy property will not violate the Energy Facility Siting Board Rule regarding ex parte communication. All parties were given notice through counsel and have the opportunity to attend. The purpose of the visit is for a Board member to familiarize herself or himself with the area in order to ask informed questions through discovery and during the hearing.”

Janet Coit, director of the Department of Environmental Management (DEM), will be touring the site of Invenergy’s proposed gas and oil burning power plant today at 1pm. As one of the two members of the EFSB (Energy Facilities Siting Board) she is legally not allowed to receive “any information about the case at any time or in any manner outside the hearing process,” according to Jerry Elmer, Senior Attorney at the Conservation Law Foundation (CLF).

At issue is the Clear River Energy Center, a proposed 900-1000MW power plant to be located in Burrillville, RI. Last week, the ISO-New England Forward Capacity Auction demonstrated that there is no need for this plant to be built.  We also have evidence accumulating that building this plant will ensure that RI will not meet its commitments to a clean energy future.

Not having conversations with any of the various interests concerned with the proposed power plant is important to the process. During the EFSB hearing on January 12, Coit explained that she was “firewalling” herself from any information that may come up as the DEM does its part towards certifying the plant. At the time, some activists in the room openly doubted Coit’s remarks. At a protest of Governor Gina Raimondo’s support for the plant at Goddard Park, orchestrated by members of Fighting Against Natural Gas (FANG) and Burrillville Against Spectra Expansion (BASE), Coit told BASE founder and activist Kathy Martley that she could not speak to her about the plant because of the firewall.

The CLF, according to Elmer, “does not want in any way to interfere with the usefulness of the visit,” but they were sure to remind the EFSB board of the RI Supreme Court’s holding in Arnold v. Lebel, 941 A.2d 813 (2007). This ruling “prohibits anyone from giving EFSB members any information about the case at any time or in any manner outside the hearing process,” says Elmer.

What is interesting about the site visit is that Tod Bianco, the EFSB “coordinator”, sent out the email invitations not to the entire list of parties working through the EFSB process, but only to the lawyers involved. To Elmer, “This means, almost by definition, that what is said in the woods in Burrillville to Janet [Coit] is outside the hearing process.”

Also, what exactly the law is on what can or cannot be said to Coit during this meeting is unclear. “Arguably,” says Elmer, “Janet asking, ‘Where is the route that the transmission interconnection will go,’ and the answer, ‘From that point over there to this point over here,’ is not allowed.”

An email to Coit, the Governor’s office and DEM staff has gone unanswered as of this writing, but we will be glad to update the story should any of these parties respond. A lawyer representing the CLF will also be on the site visit, to “observe what occurs and who says what to whom.”

If there are improper conversations between Invenergy officials and Director Coit, it will be a matter for the courts to decide, though as was said earlier, figuring out the law here could be tricky. In any event, saying the wrong thing outside an official hearing puts Invenergy in the position of having the entire case closed, meaning that the plant cannot be built.

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Recent power auction proves Burrillville power plant unneeded


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SENE (SouthEast New England)

The Clear River Energy Center, a gas and oil fired energy plant proposed by Invenergy for Burrillville, Rhode Island is not needed, according to the results of ISO New England Forward Capacity Auction, the results of which were released last Monday.  The results of the auction means that cost of energy in Rhode Island in 2019-2020 will be reduced and these lower costs have nothing to do with the energy offered by Invenergy.

[Note: Jerry Elmer had this to say in an email received after the story ran: “Energy and capacity are two different commodities.  (The third component of electricity price is ‘ancillary services.’)  The price of both energy and capacity are elements of the ultimate price of electricity that is paid by ratepayers (electricity customers) but energy and capacity are not the same thing.  (That is, energy and capacity are not the same thing as each other; and energy and capacity prices are not the same thing as the price of electricity.)  As components of the overall electricity market in New England, energy represents about 80% of the value (price) of electricity and capacity represents about 20%.  (Ancillary services are a very, very small part of the price.)]

Forward Capacity Auctions (FCA) are somewhat complicated, and making sense of the ISO NE press release was a big lift, so I talked to Jerry Elmer, senior staff attorney at the Conservation Law Foundation (CLF), to get my head around it.

“Invenergy is planning to build a 900 – 1000 MegaWatt (MW) plant,” said Elmer, “Only 485 MWs cleared in that auction and got a capacity supply obligation (CSO). So what that tells you immediately is that the plant is not needed in RI. If the plant were needed it would have gotten a CSO of 900 MW.”

Hold up. Let’s take this a little slower.

The way electrical prices are determined in Rhode Island is through a series of annual auctions. Most recently we completed FCA 10 (Forward Capacity Auction 10). Power companies bid to supply energy and ISO NE takes the best offers at the lowest price. The companies in the bidding are then obligated to supply that power during the time period specified and at the determined price. This is the capacity supply obligation (CSO).

In the most recent auction, FCA 10, Invenergy cleared only 485 MWs, about half of what their proposed 900-1000 MW plant could produce.

Under the rules of ISO NE, a certain amount of energy must be locally sourced in each zone. Here in Rhode Island, we are in the South Eastern New England (SENE) zone and the amount of locally sourced power required is 10,028 MW.

As Elmer explained the math, “The zone cleared the auction at 11,348 MW. So do a thought experiment: Invenergy got a CSO for 485 MW. Take 485 MW out of 11,348 MW and you’ve got 10,843 MW in the zone without Invenergy. You’ve got a surplus. You’ve 500 MW more than you need, without Invenergy.”

Raimondo Clear River presserThis is not what Invenergy expected when they presented their plans for the new plant. “If you look at Invenergy’s filing with the Energy Facility Siting Board (EFSB),” says Elmer, “they were talking about how desperately the plant is needed, it’s needed in RI to keep the lights on, and that the clearing price of capacity is going to be much higher in RI than in the rest of the ISO NE pool, what they call ‘rest of pool.’”

In the previous auction, Rhode Island did not fare so well. The reason for this is that between FCA 9 and FCA 10 the zones were restructured. “It used to be, up until this auction, there were two separate zones,” said Elmer, “There was SEMA RI (SouthEast Massachusetts and RI), NEMA Boston (SouthEast Massachusetts and Boston), and ‘Rest of Pool,’ but for FCA 10, the ISO collapsed what used to be the NEMA Boston zone with the SEMA RI zone and made one SouthEast New England (SENE) zone.

“The interesting thing here is that Invenergy has been planning this plant for a couple of years and it is true that in the two previous actions, FCA 8 and FCA 9 one year ago, the SEMA RI zone cleared much higher than rest of pool. Invenergy was right about that. So they start this plan for this plant, and they figure that they are going to  absolutely clean up financially.

“This is an import constrained zone, clearing price is double what the rest of the pool is, we’re going to put 900 or 1000 MW into this very high priced zone, we are going to make a fortune. This was their thinking.

“Between FCA 9 and FCA 10, ISO NE collapsed the NEMA Boston and SEMA RI zone into a big zone, and now, instead of the zone that includes RI being very constrained with a shortage of power, we now have an excess of power in the zone.”

Drawing the lines of the various zones has nothing to do with politics, said Elmer, “It’s nothing you can vote on or put political pressure on. It’s physics! It’s where the transmission does or does not exist.”

Let’s look at this from Invenergy’s point of view for a minute: Invenergy “thought they were supposed to have 900 or 1000 MW cleared, at a very high price,” said Elmer, “instead only half the plant cleared, 485 MW. What cleared went at exactly the same price as rest of pool, no premium, zero. The rest of pool came out 25 percent lower than last year’s clearing price, and the zone here [in Rhode Island] cleared at about half the price of last years price for this zone.”

This is great news for Rhode Island, but for Invenergy, not so much. “Here’s the kicker,” said Elmer, “Invenergy got a CSO for 485 MW. That means they have got to build the plant. They are on the hook. They posted a huge bond with the ISO called Financial Assurance (FA) just to be allowed to play in the auction. So now Invenergy has the worst of all worlds.

“It only sold half its capacity to the ISO and at a much lower price than anticipated, but they still have to build the plant, or as an alternative, they could sell their CSO between now and June 1, 2019 in one of the annual or monthly reconfiguration auctions that the ISO runs, and get out of the business altogether and not even build the plant.

“They are now forced to build the plant that will be much less profitable and lucrative than they thought, or get out of it.”

Currently, the EFSB  is holding hearings to determine whether or not the plant will be built. In their filing with the EFSB, Invenergy’s two major arguments in favor of the plant were, “The plant is needed for system reliability, to prevent blackouts, to keep the lights on” and “The plant will end up lowering the bill for ratepayers,” said Elmer.

“What the results of the auction shows is that both of Invenergy’s main arguments are just wrong. They are false,” said Elmer, “The plant is not needed for system reliability, it is not needed to keep the lights on and the net effect on the clearing price is either zero or very close to zero because the plant wasn’t needed.”

“CLF is presenting three witnesses to the EFSB,” said Elmer, “one witness for each of the three arguments that Invenergy is making in favor of the plant. We’ve got one witness on the system reliability issue: Is the plant needed to keep the lights on? The answer is no and this auction proves it.

“We have a separate witness on the money issue. Will building the plant save money for rate payers? This auction result says no, the answer is no.

“And then we’ve got another witness on the climate change/carbon emission issues whose testimony is going to be that if the plant is built, it will be impossible for the state to meet its carbon emission reduction goals.”

This information is “absolutely all relevant to the EFSB. In fact, Invenergy is the party before the EFSB that raised these issues! CLF is not raising these issues. We’re addressing these issues because Invenergy raised them. In legal terms, Invenergy opened the door on each of these issues, we’re just walking through it. We’re not raising these issues, Invenergy’s raising these issues. The reason we’ve got witnesses addressing these issues is because Invenergy raised them!”

The arguments in favor of the plant that we are hearing from our elected leaders, such as Senator Sheldon Whitehouse, that Rhode Island suffers from an energy “choke point” and needs this plant for grid reliability, is simply not true any more, if it ever was. Given this new information, Senator Whitehouse should now feel very free to change his position on the proposed plant.

The low energy prices available now allows Rhode Island the luxury of planning a just transition to renewable energy sources and the time we need to concentrate on efforts to lower the amount of energy we need. Political leadership is needed to take advantage of this opportunity, and should not be squandered on an unnecessary fossil fuel plant that will harm Rhode Island’s environment and keep us addicted to fossil fuels for at least another half century.

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CLF uses Resilient RI Act to block Invenergy’s fossil fuel power plant


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Raimondo Clear River presserThe Conservation Law Foundation (CLF) today filed a Motion to Dismiss with the Rhode Island Energy Facility Siting Board (EFSB) against “the application of Invenergy for a permit to build a new 900-megawatt (MW) fossil-fuel power plant in Burrillville, Rhode Island.”

In a blog post, Jerry Elmer, Senior Attorney at CLF in Providence said that the Motion “relies in part on the provisions of the Resilient Rhode Island Act, enacted by the Rhode Island General Assembly in 2014… The Resilient Rhode Island Act declares that it is the public policy of Rhode Island to reduce annual statewide carbon emissions to 10 percent below 1990 levels by 2020, 45 percent by 2035, and 80 percent below 1990 levels by 2040.”

This is the first time the Resilient Rhode Island Act has been used in this manner.

“Invenergy’s application to the EFSB,” says Elmer, “is incomplete because the application fails to address these requirements.” The Resilient Rhode Island Act “created the EFSB and the EFSB’s own rules require that permit applications must be complete when they are filed, and that incomplete applications will be rejected.”

Elmer says that Invenergy’s application is especially troubling because the company, “wants to build two separate on-site oil tanks of one million gallons each – and, after coal, oil is the dirtiest, most polluting fuel used in New England to generate electricity…” More ominously, “Invenergy fails to mention how it plans to control any of its unhealthy air pollution, let alone its climate-warming carbon emissions.”

The CLF also explains in its motion, “why Invenergy is trying to stampede the EFSB into a hurried decision based on an incomplete application.”

Invenergy made a decision to take on a so-called ‘Capacity Supply Obligation‘ (CSO) from New England’s regional grid operator, ISO-New England, before Invenergy had any of permits required to build its proposed plant. The CSO means that, by June 1, 2019, Invenergy’s plant must be up and running and ready to supply energy to the regional grid.

“If Invenergy does have its plant operational by June 1, 2019, Invenergy gets tens of millions of dollars a year from the ISO-run energy markets in so-called ‘capacity payments.’ If Invenergy does not have its plant operational by June 1, 2019, the company stands to forfeit tens of millions of dollars of bonding it put up with the ISO.

“Not all companies that build power plants in New England choose to do things in that order. But Invenergy did – and now Invenergy should be forced to live with the consequences of its own decision.”

In a press release, Elmer said, “Spending 700 million dollars on a fuel source our own laws are making obsolete is as foolish as it is futile. New England is on a path to be carbon-free by 2050, and we have a legal and moral responsibility to see it through.”

Elmer asks interested members of the public to contact their leaders in government, such as Governor Raimondo, Nicholas Mattiello and Teresa Paiva Weed and let them know that you are opposed to the build up of fossil fuel infrastructure in Rhode Island.

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