Burrillville Town Council about to have its Gaspee moment


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Raimondo in Burrillville 008On Wednesday the Burrillville Town Council will be discussing the proposed tax treaty with Invenergy, the company that wants to build a $700 million fracked gas and diesel oil burning power plant in the town. The timing of this discussion could not be worse. Invenergy just successfully petitioned the Energy Facilities Siting Board (EFSB), the governmental body tasked with with approving or rejecting the plant, for a 90 day extension on their application. Because Invenergy can’t find the water it needs to cool the plant, for the first time the company is on the ropes. Approving a tax treaty at this time will give the company a much needed win, and might turn the tide in their favor.

Invenergy is searching for the water they need. An Access to Public Records Act (APRA) request from RI Future has revealed that Woonsocket Mayor Lisa Badelli-Hunt’s office has had two meetings with Invenergy officials. On September 7 there was a 30 minute meeting and on September 20 there was a 60 minute meeting. Other meetings may have occurred since then. We know from statements made at the October 3 Woonsocket Town Council meeting that these discussions were not about siting the plant in Woonsocket. These discussions, assumed to be ongoing, are about water. Whatever bargaining position Invenergy has in their discussions with Woonsocket, or any other entity contemplating providing the water Invenergy needs, will be enhanced by the existence of an approved tax treaty.

Passing a tax treaty will send mixed signals to the rest of the state. On September 22 the Burrillville Town Council issued a strong statement in opposition to the proposed power plant. They sent out missives to cities and towns through Rhode Island, Connecticut and Massachusetts asking for other town and city councils to pass resolutions in solidarity with Burrillville. So far at least four municipalities have done so, Lincoln, Glocester, North Smithfield and Middletown. How foolish will these councils feel if Burrillville proceeds to negotiate with the company they’ve asked for support in opposing? How eager will other municipalities be to pass their own resolutions going forward?

Jerry Elmer, senior attorney for the Conservation Law Foundation (CLF) believes that the Town of Burrillville “is under zero obligation to enter into a tax treaty,” adding, “By ‘zero obligation,’ I mean: zero legal obligation, zero ethical obligation, zero political obligation. The Town has tax laws on the books, and those existing tax laws will determine Invenergy’s tax obligation if there is no tax treaty.

“Invenergy can (and likely will) make all kinds of threats about what will or will not happen in the absence of a tax treaty, but the threats are empty,” continues Elmer, “The bottom line is that: (a) The Town can simply choose not to enter into a tax treaty. (b) If the Town chooses not to enter into a tax treaty there is nothing that Invenergy can do. (c) If the Town chooses not to enter into a tax treaty, it is virtually certain that Invenergy will go away.

“But can’t Invenergy sue the Town of Burrillville to try to force the Town to enter a tax treaty?” asks Elmer, before answering, “Technically, the answer is “yes,” Invenergy can sue the town – and, yes, the town would have to spend some money to defend such a lawsuit. But Invenergy could not win such a lawsuit.  Remember what law school professors like to say: ‘You can always sue.’ I can sue you for wearing a blue suit (or for your taste in movies). But just because one can bring such a stupid, frivolous lawsuit does not mean that one can win such a stupid lawsuit.

“So, too, with Invenergy and a tax treaty.  The Town of Burrillville can decline to enter into a tax treaty with Invenergy, and there is nothing Invenergy can do to force the issue.

“The message to each and every member of the Town Council is simple, so simple it can be put into a single sentence: ‘Vote down any tax treaty.’ Or: ‘Don’t even vote on a tax treaty.’ Or: ‘Don’t vote on a tax treaty, and don’t approve a tax treaty.’ None of those sentences is complicated; none of those involves weird, technical legal mumbo-jumbo.  Everyone can understand the point.”

2016-07-26 PUC Burrillville 3033Attorney Alan Shoer, of Adler Pollock & Sheehan, has been representing Invenergy during their application process in front of the EFSB. A look at Shoer’s bio page on his law firm’s website runs down his skills and accomplishments. Shoer is presented as an expert in “all aspects of energy, environmental, and public utility law.” He has “experience in wind, solar, hydro and other renewable energy matters,” and “has represented developers, investors, contractors, utilities, and municipalities in several successful and innovative sustainable energy projects.”

Note what Shoer does not include in his online resumé: Anything at all to do with his strong advocacy for companies that want to expand Rhode Island’s dependence on fracked gas.

Like Governor Gina Raimondo, who never misses an opportunity to publicly champion wind and solar power but downplays her support of fracked gas, and like Senator Sheldon Whitehouse who humbly accepts the laurels heaped upon him for his environmental activism in the Senate but can’t find the time to publicly oppose fracked gas infrastructure in his own state, Alan Shoer seems to want his paid advocacy for fossil fuels companies like Invenergy to go unnoticed.

And this is for a good reason: Twenty years from now, no one will want their name to be attached to the moldering LNG monstrosities, brown fields and contaminated properties left in the wake of the coming fossil fuel collapse. Who wants to tell their children and their grandchildren that they helped destroy the environment when they knew the world was under threat and they knew that they were championing a dying and deadly industry? Carefully shaping their public image today is a way, hopes Raimondo, Whitehouse and Shoer, of shaping the way history will judge them.

But we won’t let the world forget their part in this, will we?

This is why Invenergy would be foolish in suing Burrillville. Not only can they not win, as Jerry Elmer points out above, but in doing so they will be exposing themselves as the villains they are. Burrillville may have to spend money defending themselves against such a lawsuit, but I will bet that most or all of the money Burrillville needs to defend themselves could come from something like an online GoFundMe effort. Fracked gas is enormously unpopular in New England, and becoming more unpopular by the day. Only those who continue to believe the lies of the fossil fuel companies, (and they’ve been lying for decades about climate change, as it turns out) that is, the most gullible or ideologically pathological, believe that fossil fuels are the future.

About 244 years ago, a group of Rhode Islanders in Warwick stood up against British tyranny and torched the Gaspee, starting a series of events that led to the American Revolution. Today, in Burrillville, a group of Rhode Islanders is standing up to the fossil fuel oligarchy and when they win, it will mark a turning point in the climate change battle, and the effects could be as significant as those at Gaspee Point in 1772. Rhode will become, in the words of Timmons Roberts, writing for the Brookings Institute, “a leader of a new energy age for the U.S.,” instead of “a middling actor locked into fossil fuel infrastructure for decades.”

The Burrillville Town Council has an opportunity Wednesday night to save the town, the state, and the world.

Be there.

EFSB sentences Burrillville to 90 days of existential uncertainty


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20161013_114807
Pre-hearing lawyer chat

Amid audience shouts of “Shame on you!” and “Merry Christmas, Invenergy!” the Energy Facilities Siting Board (EFSB) voted unanimously to grant Invenergy a 90 day suspension on their application to build a $700 million fracked gas and diesel oil burning power plant in Burrillville, effectively quadrupling Invenergy’s previous 30 day extension.

Once Pascoag voted to terminate their letter of intent with Invenergy to provide water to cool Invenergy’s proposed power plant, and Harrisville also declined to provide water, the company asked for 30 days to find an alternative source. They were granted a 30 day extension 30 days ago and despite negotiating with Woonsocket for the water needed to oil the power plant, nothing concrete was presented at today’s hearing.

Instead we heard Invenergy lawyer Alan Shoer claim that Pascog’s termination of their letter of intent came “very late in the process, after almost a year of working with Invenergy.” This made it impossible for Invenergy to come up with an alternative plan, complained Shoer. Attorney Jerry Elmer with the Conservation Law Foundation (CLF) later countered that “Invenergy made a careful, conscious, deliberate decision to file an application with the EFSB that had very tight, strict, statutory deadlines for things happening, before they had a secure water source… That was Invenergy’s sole election.”

In other words, continued Elmer, Invenergy knew that their non-binding letter of intent “may not result in a water source.”

Margaret Curran
Margaret Curran

The 90 day suspension comes with the minor caveat that Invenergy provide a status update in 60 days. The update must show concrete progress in securing a water source, though it is unclear what penalty Invenergy may face if they do not deliver an update that is satisfactory to the board. Criteria for the update seemed sketchy.

In 90 days, Invenergy must be able to present a water source to the board, along with a plan to transport the water to the location of the power plant. Burrillville recently provided a list of criteria that board member Janet Coit suggested would need to be satisfied for the suspension to be lifted. The criteria includes the source of the water, the means of transmission of the water, and the disposal of waste water, among other concerns.

In the event that Invenergy is unable to come up with a water supply, Coit suggested that the EFSB might be open to further suspensions at that time, effectively suggesting unlimited time for Invenergy to get their application in order, unless the board decides to dismiss the application per the motions from the Conservation Law Foundation and the Town of Burrillville.

Parag Agrawal
Parag Agrawal

Lawyer Michael McElroy gave a stellar speech to the board in support of dismissing Invenergy’s application, even going so far as to quote Marvel ComicsStan Lee. McElroy also directly confronted Chair Margaret Curran and board members Parag Agrawal and Janet Coit about concerns that the EFSB’s process “may be dictated by” Governor Gina Raimondo.

“The Town of Burrillville does not want this plant,” said McElroy, “I think that’s been made clear to this board. This plant would be a polluting monster that violates the town’s comprehensive plan and zoning ordinances and would negatively impact impact the quality of life for all Burrillville residents.

The EFSB, continued McElroy, “has been given extraordinary legal powers to grant permits that would otherwise be granted by my client, the Town of Burrillville. You have in essence become, among other things, the town’s planning board, its zoning board and its building inspector. But with such great power comes great responsibility. Your most important power and responsibility is to fully, fairly and impartially evaluate all of the issues that come before you after hearing from all of the parties on those issues.”

“The residents of the town and my clients have become concerned that throughout this process that the board’s votes on this process may be dictated by the governor, who has repeatedly and publicly expressed her support for this project despite the town’s overwhelming opposition. This board’s ill-advised and illegal previous attempts to silence the town and prevent it from being heard today only reinforces that concern.

McElroy urged the board to dismiss the docket, not suspend it. “Suspending the docket instead of dismissing it would give Invenergy what amounts to a gift of an indefinite suspension,” said McElroy. “The town has been fighting this battle now for almost a year at great monetary and emotional expense.”

20161013_114557
Donna Woods

McElroy’s fiery comments stand in sharp contrast to those of Jerry Elmer, who added that though the lack of water was a major issue that precipitated the motion to suspend, there was also the issue of a lack of information from Invenergy that caused six of the twelve advisory opinions to the board to be submitted incomplete.

After the board rendered its decision those watching the proceedings left the room singing “We shall overcome.”

Those from Burrillville I talked to were angry and disappointed by the ruling. They feel the process is corrupt and stacked against them. They feel that they are being forced to attend yet more town and city council meetings throughout the state in an effort to garner support and prevent the sale of water to Invenergy. Their holidays will now be filled with research, activism, environmental reports and endless meetings in towns and cities throughout the state and beyond to garner support for their cause and to prevent Invenergy from securing a source of water.

Yet though the process seems corrupt and Invenergy seems intent on grinding away their resolve, the people I talked to were adamant that they would not give up or stop fighting.

Burrillville residents speak at Woonsocket City Council meeting to prevent water sale to Invenergy


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20161003_202049
Mike Marcello

During a Woonsocket City Council meeting Monday evening it was revealed that the City of Woonsocket is in some kind of negotiations with Invenergy regarding its proposed $700 million fracked gas and diesel oil burning power plant. When the question was brought up, City Solicitor Michael Marcello answered only that the city council had been briefed in closed session and would not directly answer the question. As to the question of a power plant being built in the city, Marcello gave a direct answer: No.

City Councillor Daniel Gendron put an item on the city council’s agenda because of the number of calls he had received based on the rumors that such a deal was in the works. He also said that he prepared his question carefully, “so that I could read the question and give the administration [of Mayor Lisa Baldelli-Hunt] the opportunity to answer that question definitively. So what I would like to ask, and I’m asking this of the administration and of my fellow councilors, but specifically the administration. I was hoping the Mayor would be here to respond but, in her absence, somebody in the administration could answer.”

20161003_190512Gendron asked two questions. The first concerned rumors that Invenergy was in negotiations to locate the power plant in Woonsocket, as an alternative to locating the plant in Burrillville, where there has been fierce local and statewide opposition. The second concerned the possible sale of water to Invenergy, for the plant planned for Burrillville.

“My question is a simple question,” said Gendron, “Has the administration had any discussion or communication with Invenergy or anyone else with respect to either siting a power plant in the city or about acquiring water from the city to be used in connection with a power plant?”

Council President Robert Moreau suggested City Solicitor Michael Marcello answer the question. Gendron repeated once more that he was going to address it to the mayor, but would be satisfied with an answer from Marcello.

“Councilor,” answered Marcello, “as you know you are a member of the council and you were briefed by the administration in closed session.” The closed session Marcello refered to took place at 5:30pm, shortly before the 7pm city council meeting. “The reason that we have a closed session,” said Marcello, “is to keep communication closed until such time as the law requires us to disclose it. I will say that emphatically, that there have been no discussions with the administration, that we’re aware of, that I’m aware of, to relocate the power plant within the City of Woonsocket.

14469712_635752809921345_4452620182119671471_n“But with regard to your second question,” said Marcello, “you received a briefing in closed session, and that’s where that information must lay right now. In closed session.”

To the residents of Burrillville who had filled the city council chambers, this was confirmation of weeks of rumors.

“At the direction of our council I will not taint the sanctity, if you will, of the executive session meeting and I will not pursue this any further at your direction Mr. Marcello,” said Gendron.

“In summary,” said Council President Moreau, “that was pretty much what you’re going to hear about it tonight from this council because we had an executive session and the City Solicitor explained that we need to abide by that forum.”

20161003_202439“I put this item on the agenda tonight,” said Gendron, “for discussion purposes… that is what precipitated the executive session that took place prior to this meeting.” The item was “an effort to bring out the truth,” said Gendron. “I think that we needed to start this talk, we needed to squelch some of the rumors.” The solicitor denied completely that there was a power plant coming to Woonsocket, said Gendron. Before today, “none of [the city council] knew what was going on, and that was the benefit of the executive session.”

To the dozens of Burrillville residents and anti-fossil fuel activists from around the state, the city council meeting confirmed the existence of the “third option” ominously hinted at by Attorney Richard Sinapi at a meeting of the Harrisville Fire District and Water Board back in August. At that time Harrisville voted not to sell water to Invenergy, and it was known at that time that Pascoag was also going to vote against selling the power plant water.

Rumors had been swirling for weeks that Woonsocket was in negotiations with Invenergy regarding water. RI Future had put in an Access to Public Records Act request with the city on September 23rd regarding this issue. BASE (Burrillville Against Spectra Expansion), took to Facebook to ask people to call the office of Mayor Lisa Baldelli-Hunt “and urge her to stop negotiating a water deal with Invenergy.”

The time frame on any potential deal between Invenergy and Woonsocket is difficult to determine. Yesterday Invenergy was given ten days to prepare for a “show cause” hearing with the Energy Facilities Siting Board (EFSB). EFSB board member Janet Coit, who noted that Invenergy lacks a water plan said that, “from the perspective of the board, we have a big gap.” As part of the show cause hearing, Invenergy will have to submit their new water plan. Though Councillor Roger Jalette, (who is running for Mayor of Woonsocket) said that Invenergy might be making their case before a new city council after the elections in four weeks, Invenergy might not have that much time to wait until after an election.

There was also the hint that this issue may have implications for Woonsocket’s mayoral race between Jalette and Baldelli-Hunt, as Jalette said he is sympathetic to Burrillville’s cause.

During the public commentary period, the Woonsocket City Council was given a taste of what the Burrillville Town Council has been experiencing for nearly a year, that is, speaker after speaker objecting to new fossil fuel infrastructure being built in our state at a time when climate change threatens us all. “We don’t want it in our backyard,” said Ray Trinque of Burrillville, “and we don’t want it in your backyard and we don’t want it in anyone’s backyard…”

Burrillville resident Denise Potvin was born in Woonsocket and has family there still. Potvin said that Alan Shoer of Adler Pollock & Sheehan, one of Invenergy’s attorneys, “conveniently happens to be an attorney for the City of Woonsocket’s water department.” She mentioned that attorney Richard Sinapi is an attorney for Harrisville and large labor union with an interest in seeing the power plant built. “A lot happens behind the curtain,” said Potvin. She ended by suggesting the council educate itself by reading articles like this one on RI Future.

City Council Vice President Albert Brien interrupted public testimony and explained that right now, there was no proposal before the council.

Councillor Roger Jalette is leaving the city council as he runs against Lisa Baldelli-Hunt for Mayor of Woonsocket. “I want you to know that I am very very sensitive to your plight,” said Jalette. Jalette warned that there will be a new city council in four weeks, after the election, as neither he nor Council President Moreau will be on the council.

Burillville resident Jeremy Bailey pointed out that City Solicitor Michael Marcello is also a Ste Representative. Rep Marcello voted against a bill in May that would have allowed Burrillville residents to vote on any proposed tax treaty the town made with Invenergy. Rep Marcello was one of two representatives to attend the Northern Rhode Island Chamber of Commerce’s Eggs & Issues Breakfast Thursday morning where Invenergy‘s director of development John Niland was the guest speaker.

CLF makes its case against need for Burrillville power plant at RIPUC hearing


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2016-07-26 PUC Burrillville 3026
Robert Fagan

On the second day of the RI Public Utilities Commission (RIPUC)’s evidentiary hearing concerning Invenergy‘s proposed $700 million fracked gas and diesel oil burning power plant, to be located in Burrillville, Jerry Elmer of the Conservation Law Foundation (CLF) presented his witnesses who argued that the power plant is not needed and that it’s effect on ratepayers would be negligible.

The CLF’s case is one of nuance, and much depends on the views of Commissioner Herbert DeSimone Jr. DeSimone is the one commissioner on the PUC board that did not recuse themself, and the one commissioner who will write the RIPUC’s advisory opinion to the Energy Facilities Siting Board (EFSB), the body ultimately responsible for deciding on the plant. Invenergy is making the case that since the proposed plant has already sold half its capacity in an energy futures market run by ISO-NE, the plant is by definition needed. This is the default position not only of Invenergy, but also of the RI Office of Energy Resources (OER) and the RIPUC, if the questioning from their attorneys at the hearing are any indication.

2016-07-26 PUC Burrillville 3033
Alan Shoer and National Grid’s rep conversing

The CLF is maintaining that what ISO-NE did was purchase extra power, and if Invenergy’s plant is taken out, there will still be more than enough electricity on the grid to power all of New England. Also, going forward, as more and more renewables come on line, the need for the plant will go down, not increase. Unfortunately, ISO-NE is somewhat of a black box. Though they publish thousands of pages on how their energy auctions are run, figuring out why one plant’s energy was purchased and another was not is virtually impossible, and no one from ISO-NE was at the hearing to answer questions.

As for ratepayer savings, on the first day of the hearing Invenergy’s attorney Alan Shoer called his witnesses and made his case that the savings to ratepayers would be significant. On the stand, John Niland, director of development for Invenergy admitted that the $280 million number he gave to Burrillville residents earlier in the year was false, and that he knew it was false when he presented it. The true number was closer to $36 million in rate payer savings.

2016-07-26 PUC Burrillville 3031
All lawyers at the bench for a huddle

The CLF’s witness, Christopher Stix, also ruled out the $280 million number, saying it took him one week after the ISO-NE auction results were published to perform his calculations that the actual savings ranged from between zero and $36 million. John Niland testified that Invenergy did not know this number when he falsely gave the $280 million figure to the audience in Burrillville seven weeks after the auction published its results.

It is up to DeSimone to decide whether or not a savings of between zero and $36 million to rate payers is worth the additional pollution, the despoilment of Burrillville’s pristine habitats and the continued dependency on fracked gas for our energy needs in New England for decades to come. It is worth noting that $280 million was a number too big to ignore, from an economic standpoint, where as zero to $36 million (which is a bell curve, the actual number may be closer to $20 million) is not nearly as tantalizing.

The CLF’s first witness, Robert Fagan, testified for a marathon five hours.

DSC_3045
Christopher Stix

“We know now is that the Invenergy plant is not needed for electrical needs in New England,” said Fagan, and under cross examination he did not falter.

Getting through Fagan’s testimony required defining a host of terms and acronyms. ICR, LOLE, NERC, sloping versus vertical demand curves etc. were defined and discussed. It was very technical, but it served two functions. One, it established Fagan’s expertise, something Invenergy tried to call into question in pre-filed testimony, and two, it helped prove Fagan’s case that the proposed power plant was not necessary.

Though high-powered attorneys Alan Shoer and Jerry Elmer set the tone for the meeting, it’s most likely that RIPUC attorney Cynthia Wilson-Frias will have the most impact on Commissioner DeSimone’s advisory opinion, given that she will likely help author it and DeSimone can be expected to lean heavily on RIPUC’s in house legal expertise. Wilson-Frias asked pointed questions about the fact that Invenergy already sold some of its expected output to ISO-NE. She indicated that since the energy sold, it is by definition needed. Fagan countered this logic well, his entire testimony was in fact a rebuttal of sorts to this idea, so it comes down to how much weight Wilson-Frias gives Fagan’s views versus the more mainstream “free” market ideas favored by Invenergy.

The last day of the hearing is today, and unfortunately I will not be in attendance. I hope to get an update from Jerry Elmer after the hearing.

You can view the entire days proceedings below:

Patreon

Invenergy’s John Niland under oath at PUC hearing for Burrillville power plant


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2016-07-25 PUC Burrillville 3011
John Niland

There were two big reveals at the first day of the PUC evidentiary hearing in Warwick on Monday. First, John Niland, director of development for Invenergy, admitted under oath that he knowingly gave false information to the EFSB at the March 31, 2016 EFSB hearing held at the Burrillville High School. Second, Invenergy’s proposed plant will not be clean: It’s emissions will be higher than the the current New England average of all power plants.

Everyone seemed surprised that the evidentiary hearing at the Public Utilities Commission (PUC) regarding Invenergy’s proposed $700 million fracked gas and diesel oil burning power plant for the Town of Burrillville wasn’t packed with Burrillville residents. The Warwick police officer seated at the back of the room looked almost bored. Michael McElroy rescinded his motion to hold the hearing in a larger venue because, as his co-counsel Oleg Nikolyszyn said, “there are plenty of seats.” Of course, holding the meeting 40 minutes outside Burrillville during a work day was a surefire way to limit attendance.

Jerry Elmer
Jerry Elmer

The Public Utilities Commission hearing is being held to help the one PUC commissioner that did not recuse himself craft an opinion on whether or not the plant is needed and what effects the plant will have on ratepayers. The one commissioner is lawyer Herbert F. DeSimone, Jr.. Of his co-commissioners, Margaret Curran is on the Energy Facilities Siting Board (EFSB), the body ultimately deciding on Invenergy’s application. Obviously she cannot write an advisory opinion to herself. Marion Gold is on record for having supported the plant during her stint as the executive director of the RI Office of Energy Resources. This leaves only Herbert DeSimone on the board. He will author the advisory opinion to the EFSB.

For what it’s worth DeSimone ruled early on that having only one person on the board does not violate any rules, as he will not be making any decisions, but will simply be crafting an advisory opinion.

Lawyers Alan Shoer, representing Invenergy and Jerry Elmer, representing the Conservation Law Foundation (CLF), delivered opening statements. Shoer argued that the plant is needed, that it will reduce air emissions and save ratepayers money. Elmer explained that Invenergy’s promises were unlikely.

The first witness was Building Trades president Michael Sabitoni. He testified on the “socio-economic impacts of project” i.e., the jobs. Elmer objected, because jobs are not within the scope of this hearing. DeSimone overruled Elmer, saying, “I’ll allow the statement to stand but I’ll give it the weight that is appropriate.”

Under grilling from Burrilville’s lawyer Michael McElroy, Sabitoni estimated that 80 percent of the jobs created by this project will be from Rhode Island. He had no estimates on the number of jobs that will be created for Burrillville. He said that the members of his unions will be well placed to get the more permanent jobs on offer at the plant as well.

Next up was John Niland, director of development at Invenergy. His testimony stretched out for over 80 minutes, and there were some interesting exchanges along the way.

Herbert F. DeSimone, Jr.
Herbert F. DeSimone, Jr.

Under oath and under the examination of Jerry Elmer, Niland admitted that when he said, to the EFSB on March 31 in Burrillville, that Rhode Islanders would save $280 million on electricity after the new plant was built, he knew the number was wrong. He said that he didn’t have a better number to give, so he went with the older, wrong number. The true savings cannot be over $30 million, and could be closer to zero, maintains the CLF.

Under examination, Jerry Elmer also forced Niland to concede that Invenergy’s claim that coal and oil together account for 28 percent of New England’s energy footprint is incorrect. The true number is closer to six percent.

Niland claimed that since Invenergy sold half it’s output in the most recent energy auction, the plant is needed, by definition. Burrillville’s lawyer Michael McElroy pointed out that if only half the proposed plant’s energy is sold, then by Niland’s own logic only half the plant is needed. And if half the plant is all that’s needed, savings to ratepayers can be expected to be “substantially less.”

Niland ageed.

The growth of renewable energy sources will reduce the need for the power plant over time, said Niland. The plant has a life expectancy of 40 years. Niland knows of LNG plants still operating after 60 years. Niland admitted that Rhode Island’s dependency on fossil fuels will increase once the plant is built. If the plant is built, Rhode Island’s carbon footprint will go up, admitted Niland. Though technically, said Niland, given that RI is a net energy importer our emissions, “could be reduced.”

McElroy was not happy with Niland’s caveat. Within Rhode Island’s borders, asked McElroy, “Emissions will go up, correct?”

“I believe so,” said Niland.

McElroy asked about why Burrillville was chosen as a location for the plant. Niland said that the location was chosen due to its proximity to the Algonquin gas pipeline and electrical transmission wires. (Both of which were updated recently, I should note.) Niland’s job is to locate and develop projects like the one planned for Burrillville. He was initially lured here because of the state’s high energy prices, near $17 a killowatt hour. The new lower prices at the recent energy auction, closer to $7, will probably reduce interest in bringing large projects like this to the region, said Niland. If an energy plant doesn’t clear the energy auction, said Niland, it isn’t needed.

2016-07-25 PUC Burrillville 3021
Ryan Hardy

The next and last witness for Invenergy was Ryan Hardy. Hardy is the person who prepared Invenergy’s report that calculated the rate savings should the plant be built. Jerry Elmer began his cross examination by handing Hardy a calculator and asking him to run the numbers, based on Invenergy’s own specs. After a long pause, Hardy came up with the plant producing 817 pounds of CO2 per megawatt hour. Hardy’s written testimony was 760 pounds. Ryan countered that he was basing his number on estimates of actual plant use, which he estimated to be about 70 percent of capacity. The numbers Elmer had him calculate were maximum possible output.

Also, said Hardy, the plant will be “primarily run on LNG, never on fuel oil, unless gas is not available.”

However, both of Hardy’s estimates are over the New England average, meaning that the plant can’t reduce emissions, because the plant’s emissions are higher than the average plant emissions in New England.

Elmer asked Hardy about ratepayer savings next. “Was your analysis of FCA-10 [the electricity auction] based on selling both turbines?”

“Yes,” said Hardy.

“Were you wrong about that?”

“Yes.”

“Was it reasonable for Niland to estimate savings of $280 million when he knew otherwise?”

“Yes,” said Ryan.

 

You can read Jerry Elmer’s thoughts about day one of the hearing here.

Alan Shoer
Alan Shoer
2016-07-25 PUC Burrillville 3009
Michael Sabitoni

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