Northern Rhode Island Chamber of Commerce

September 17, 2016

Disruption and evolution at energy meeting

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The Consumer Liaison Group (CLG) Meeting happens four times a year and its a chance for ISO-NE to exchange information with electricity consumers in New England. ISO-NE is the group that regulates our electricity markets and keeps the lights on by coordinating electricity generation and transmission. They run billion dollar markets and interact with companies like Spectra Energy, Invenergy, National Grid and Deepwater Wind. Pretty much every aspect of the process of getting electricity to your television is touched upon by ISO-NE in some way.

The latest meeting of the CLG, in Providence on Thursday, featured a panel discussion with representatives from the four companies mentioned above. The panel was pulled together with the help of Douglas Gablinske, executive director of The Energy Council of Rhode Island (TEC-RI) an advocacy group for energy company concerns. Readers of RI Future may remember that Gablinske was a vocal opponent of Cale Keable’s bill to reform the Energy Facilities Siting Board (EFSB). He was also the only speaker at the RI Public Utilities Commission (RIPUC) to speak in favor of the pipeline tariff.

Gablinske surprised me by asking if I knew about any planned protests or disruptions. I said I didn’t. He asked me specifically about the FANG Collective. I had no idea of what plans they have, if any, I said. Then Gablinske said that he noticed Mary Pendergast on the list of people who had signed up to attend. Pendergast was sitting in the room, and he soon went over to introduce himself to her.

2016-09-15 ISON-NE PVD 001 — As the meeting ended, protesters unfurled a banner

During the course of the presentation there was a disruption. As Invenergy’s John Niland gave his presentation to the room, Mary Pendergast stood and display a small sign that said, “No fracked gas Power plant.” Her protest was silent but it did seem to throw Niland off a bit, as his delivery seemed somewhat distracted.

It was during the third presentation that the disruptions became more pronounced. As Richard Kruse, vice president at Spectra Energy spoke glowingly about the need for bigger and better pipelines in our fracked gas infrastructure future, Kathy Martley of BASE (Burrillville Against Spectra Expansion), Keith Clougherty of the FANG Collective and Sally Mendzela stood up.

“Spectra Energy, Energy for Death,” said Martley as I headed for my camera. “Say no to Invenergy and tell Invenergy to go home,” Martley continued.

As the protest continued, Gablinske took the podium and said, “You have a right to be here but not be disruptive” as Clougherty continued to speak.

Lennette Boiselle, an ally of Geblinske and a lobbyist for the Northern Rhode Island Chamber of Commerce got up and left the room, presumably in search of security. Readers might remember Boiselle as the person arguing against democracy at the public comment hearing concerning Cale Keable’s EFSB bill.

“The political correctness, of not allowing other people to talk is sweeping through this country,” said Geblinske, “It’s an incorrect assumption, this gentlemen has the right to speak…”

“We’ve been listening to you our whole lives, Pal,” interrupted Sally Mendzela.

Gablinske ultimately offered to set up a forum where “both sides” could be heard but it is unknown if this will actually happen. The protesters took their seats, no one was ejected from the forum, and Kruse finished his talk.

Amazingly, though, that wasn’t the end. During a brief question and answer period at the end of the presentations, Gablinske called on Clougherty to ask a question!

“I would ask for a question, not a speech or a statement,” said Gablinske, when he realized who he had called upon.

Clougherty then asked Niland, Kruse and Bill Malee, a National Grid VP, “Do your companies have any money set aside for restitution for the millions of people who are going to be displaced and killed by the infrastructure projects you all are proposing?”

There is no good answer representatives from these companies can give, yet Niland attempted one. As expected, it was not good.

I found the most interesting talk of the day came from Mary Louise “Weezie” Nuara, External Affairs Representative for ISO-NE.

“The region’s competitive wholesale electricity markets are really designed to maintain reliability through the selection of the most economically efficient set of resources,” said Nuara, but the states “have environmental and renewable energy goals that are beyond the objectives of the wholesale electricity markets.”

What’s happening is that states are setting goals to increase renewables and reduce greenhouse gas emissions (like the goals set out in ResilientRI, but all the New England states have some version of this idea.) ISO-NE is designed to deliver energy as reliably and cheaply as possible. As a market, it cannot deliver renewables or reduce emissions unless those options are cheaper and cleaner. In August, NEPOOL (which represents the interest of the New England states when dealing with ISO-NE) began looking into how to adjust wholesale electricity markets to accommodate the goals of the states. It is NEPOOL’s goal to develop a “framework document” by December 2 to provide guidance to ISO-NE regarding potential changes. (A kind of advisory opinion, if you will.)

What makes this interesting, to my mind, is that if ISO-NE starts taking the climate change concerns of the states into account, plants like the one Invenergy is planning for Burrillville will have a harder time selling their energy into the markets.

ISO-NE is a little over a decade old, but already it’s finding that its systems are in need of being updated over concerns of climate change. By contrast, the EFSB here in Rhode Island was established thirty years ago, in 1986. The RI General Assembly has shown little inclination towards revising the EFSB’s mandate in lieu of climate change.

Below please find all the video from the CLg meeting except for the closing comments.

Rebecca Tepper, chair of the CLG Coordinating Committee and chief of the Energy & Telecommunications Division of the Massachusetts Attorney General’s office introduced keynote speaker Rhode Island General Treasurer Seth Magaziner.

Douglas Gablinske, executive director, The Energy Council of Rhode Island

Jeffrey Grybowski, chief executive officer, Deepwater Wind

John Niland, director of business development, Invenergy

Richard Kruse, vice president and regulatory & FERC compliance officer for Spectra Energy

Bill Malee, vice president of regulatory affairs, for National Grid

ISO-NE Q&A

June 16, 2016June 16, 2016

Keable/Fogarty power plant bill: An autopsy

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Perhaps the most honest statement to come out of the Senate Judiciary Committee regarding Paul Fogarty’s bill S3037A came in the hallway outside the hearing room after the vote, courtesy of Senator Leo Raptakis.

“What happened in there?” I asked.

“I don’t know,” replied Raptakis, “I don’t know why they brought it up for a vote at all.”

The confusion Raptakis felt was understandable. Normally, if you want to kill a bill in the General Assembly, you just never let it come to a vote. Eventually the session ends and the bill is dead.

So why bring the bill up for a vote? What was really going on?

Senator Paul Fogarty’s bill would have allowed the voters of Burrillville the opportunity to vote on any tax agreements made by their town council with any power plant located in the town. The immediate effect of the bill would be to allow voters to decide on a tax treaty being negotiated with Invenergy, which wants to build a $700 million fracked gas and diesel oil burning power plant in the town. The Burrillville Town Council has been repeatedly dishonest with the residents of the town, and has been actively working to bring the power plant into the town against the wishes of most residents. Residents of Burrillville want a say in the process and they want to prevent the power plant from being built.

The House version of the bill, sponsored by Representative Cale Keable, passed out of the House Committee on Environment and Natural Resources on an 11-2 vote and passed the full House on June 8. The Senate version, after a long, contentious hearing that pitted Burrillville residents and environmentalists against labor and business, was tabled without a vote.

The forces in favor of the power plant did not want this bill to pass. It is believed by many that this bill will make it impossible for the power plant to be built, because it will interfere with Invenergy’s ability to secure financing for the project. A stable tax treaty is important to Invenergy because without it, the company faces the prospect of paying full taxes on the power plant. No tax treaty, no funding, some say.

In an effort to kill the bill, Invenergy paid for a full page ad in the Providence Journal. An editorial and an op-ed were published in the paper as well. Pressure was brought to bear on the Senate from the Greater Providence Chamber of Commerce and the Northern Rhode Island Chamber of Commerce whose lobbyists testified against the bills. And labor, which wants the plant built because of the much needed jobs it will provide, lobbied the Senate hard.

Meanwhile, there was pressure being placed on Governor Gina Raimondo by environmentalists to not veto the bill, were it to be passed. Raimondo did not want to be put in the position of having to veto this bill. She wants the public appearance of being strong on environmental issues, even if she supports fracking and fossil fuels. For Raimondo’s purposes, the less known on the national scene about her true environmental positions, the better. Vetoing this bill would create the wrong kind of headlines, the kind of headlines that might hamper her national political ambitions.

Satisfying these powerful players is easy. All that needed to happen was for the bill to never get out of the Senate Judiciary Committee, and the bill would die, never to be voted on. There’s only one problem: If that were to happen, Senator Paul Fogarty would have failed the community he serves, and though Fogarty, for political reasons, is opposed to the power plant and in favor of his bill, he’s a strong union member and supporter. Under normal circumstances he would be a reliable pro-union vote and a valuable ally.

A way to both kill the bill and save Paul Fogarty’s political career was therefore devised.

Four Senators, Frank Lombardi, William Conley, Donna Nesselbush and Stephen Archambault, presented legal-sounding arguments against the bill, all the while telling Burrillville residents watching the proceedings live or at home how wonderful their Senator Paul Fogarty is. They laid it on pretty thick at times.

“Kudos to Senator Fogarty for the concerns that he showed his constituency in the town of Burrillville,” said Senator Lombardi, “and [for] having the intestinal fortitude to bring forth the bill on the behalf of his constituents.

“And I mean this, Senator,” continued Lombardi, looking at Fogarty who was seated in the center of the room, “I think that the people of the town of Burrillville are very fortunate to have you as their Senator and the work that you do for them. Quite frankly you listened to them and you put forth what you thought was a very favorable bill for your citizenry.”

Not to be out done, Senator Conley said, “Senator Fogarty’s advocacy on behalf of the people of Burrillville on this issue was extraordinary. I’m just about at the close of my fourth year in the General Assembly and I can say without reservation that I’ve never seen one of my colleagues advocate in such a meaningful and, I don’t want to say aggressive but certainly in a strong way, on behalf of legislation. His heart and soul is behind this bill and whether you agree with one of your colleagues or not, it’s always that kind of advocacy in this building that often goes unsung. So it’s important to note that.”

Senator Nesselbush was more circumspect in her praise, saying, “Senator Fogarty has been a passionate supporter of this bill that he even convinced me to be a co-sponsor of the bill.”

Senator Archambault, who might run for Attorney General in 2018, also chimed in with praise for Fogarty, “I want to echo the sentiments of my brothers and sister with respect to Senator Fogarty. He’s been here for you all along, he’s put in a tough piece of legislation, it certainly hasn’t made him any friends on one side but he did it because he cares. I think his actions speak for themselves.” After this performance, I don’t think any environmentalists will be voting for him.

With Senator Fogarty properly lionized and hopefully protected, all the Senators needed was an excuse, any excuse, to vote against the bill. As it is, they produced three excuses. They also needed someone to blame. They couldn’t blame the business community, they couldn’t blame the Governor and they couldn’t blame labor.

Enter the Republican Burrillville Town Council with their press release turned resolution. At the original Senate Judiciary Committee meeting to discuss the bill, Senator Lombardi foolishly tried to pass off a press release against the bill from the town council as a resolution, but in fact the Burrillville Town Council didn’t get around to issuing an actual resolution until the committee meeting was almost over. But now, with a “proper” resolution in hand, Lombardi was able to produce a villain: the Burrillville Town Council.

In his statement after the vote, Fogarty expressed his disappointment at the bills defeat, but did not blame the vote on his fellow senators. Instead, he referred to the resolution, writing that the “last-minute opposition of the Town Council… [was] the equivalent of getting two torpedoes to the bow.”

“It’s a shame that the Burrillville Town Council does not have enough faith and confidence in the local citizenry to make an informed decision on a matter that will impact the future of their community,” wrote Fogarty, forgetting that it was the Senate Judiciary Committee, not the Burrillville Town Council that killed the bill.

Lombardi’s second excuse was that he was concerned about the precedent that passing the bill would set. He said that when the residents of a city or town disagree with their elected officials, they shouldn’t be looking to the state to pass new laws. Lombardi feared that the General Assembly might be flooded with every local issue that is “controversial” if they passed this bill. Of course, it’s fairly easy to find dozens of examples where the state has stepped in to override local laws and ordinances. The very creation of the Energy Facilities Siting Board, the body that will ultimately decide whether or not the power plant will be built, is an example of the state overriding local concerns and laws, for instance.

Lastly, Lombardi noted that one of his colleagues “was gracious enough to provide us with a Rhode Island Supreme Court case entitled Warwick Mall Trust v State of Rhode Island.” Sources told me that the court case was provided to Lombardi and the other senators by Senate Majority Leader Dominick Ruggerio, a strong supporter of labor who sat in on the original Senate Judiciary Committee meeting that heard testimony on this bill.

Lombardi said that the decision in this case could be applied to Fogarty’s bill, and claimed that the bill, as written, would be unconstitutional.

In the end, of course, the Senate Judiciary Committee voted Fogarty’s bill down. It was such an unusual occurrence that Chairman Michael McCaffrey couldn’t quite get his head around how it was supposed to work. As the chairman struggled to find the right way to phrase a no vote, two Capitol Police Officers entered the room, to make sure the crowd did not react aggressively to the decision everyone seemed to know was coming. The vote was 7 -2 against. Only Nesselbush and Erin Lynch Prada voted in favor of the bill.

The disappointment of the Burrillville residents could be felt physically. There were tears. Nick Katkevich, of the FANG Collective, shouted “Shame!” as he was leaving the room. The Capitol Police responded by telling Katkevich to leave, but he was already gone. Out in the hallway, there were more hugs and tears among the Burrillville residents.

They say they will continue the fight.

Looking over every single Senate Judiciary Committee vote this session, you will find that every bill brought up for a vote passed. In fact, every bill before this committee, but two, passed with no votes against them. The two exceptions were S2333 on May 5 and S2505 on March 3, and both times it was Senator Harold Metts casting the lone vote against. Until this day, six of the senators present had not cast a no vote in committee this year.

The truth is that no one is ever really supposed to vote no. These committee votes are pro forma. It’s theater. Every vote serves a purpose and no bill is voted on in committee without a predetermined outcome known well in advance.

And the vote on Paul Fogarty’s bill was no different.

May 26, 2016May 26, 2016

Invenergy’s Niland pitches power plant at country club

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John Niland, Invenergy’s director of development, gave a short presentation and answered eight questions at the Northern Rhode Island Chamber of Commerce’s Eggs & Issues Breakfast Thursday morning. The questions were submitted in writing and carefully vetted before being read to Niland. The event was sponsored by the Clear River Energy Center, so there was little expectation of any kind of robust give and take. Held at the exclusive Kirkbrae Country Club, it wasn’t the venue for tough questions.

In attendance at this breakfast was Woonsocket Mayor Lisa Baldelli-Hunt, and state representatives Michael Marcello and Brian Newberry.

Niland has been Invenergy’s front man for a proposed fracked gas and diesel oil burning power plant in Burrillville. His messaging is always very careful and measured. Still, over the course of his short talk, he did reveal some interesting nuggets of information.

The proposed power plant is dual fuel, so it can burn either gas or oil. Though gas is not a clean energy source, it is better than burning oil for the environment directly surrounding the plant. The circumstances under which oil will be burned, then, is of some importance. Niland said, “some people are saying we will be making an economic choice” as to which fuel to burn when. [In fact, I was the first to suggest this, back in January.]

Niland did not dispute this analysis, per se, but said instead that the last time oil and gas were at price parity was in 2014, and indicated that it would therefor not be a problem.

He seems to think that oil’s current price of around three and four times that of gas is a permanent condition, ignoring the possibility of the gas bubble bursting (as I pointed out here) or that oil will collapse in price due to competition from renewables.

Niland also said that entering the ISO Forward Capacity Auction “was a risk for [Invenergy].” As I pointed out here, Invenergy’s proposed plant’s performance in the Forward capacity Market demonstrates that the plant is not needed. The ISO, a market that determines future energy prices here in New England, bought some power from Invenergy, but all the power it bought is surplus.

Niland completely reverses this analysis. Committing to purchasing some of the power from the proposed plant, he says, is the ISO’s “way of saying,’we need this power.’”

Not quite.

As for the water that Invenergy hopes to draw from a MTBE contaminated well and clean before dumping it as wast water in the Clear River, Niland admits that his company can “probably” clean the water and that they are “currently working up a detailed design” for the water treatment. MTBE is responsible for the closing of wells in Burrillville and has been linked to a terrible cancer cluster.

During the question and answer period Niland seemed pleased that Rhode Island has an Energy Facility Siting Board. Many states lack such a board, and he seemed to like having to deal with a state level agency made to smooth the way for power plant projects.

As for noise levels for the standard operation of the plant, Niland called the 43 decibels currently on the books in Burrillville “somewhat restrictive” and said that his company will ask for a variance.

Some curious math was proposed by Niland, who said that the plant, if approved, will begin construction “around this time next year, (May 2017) and be completed in 30-36 months, opening in June 2019. Not to be a stickler, but that’s 25 months for construction. We know that rushing construction leads to problems, is that what we’re heading for here?