Vermont lawmakers call for hearing to better understand regional electricity market

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Related Companies Central Vermont Public Service (CV) Entergy Corp. (ETR) Gaz Métro LP Green Mountain Power Corp. Hydro-Quebec

Related Documents Industry Document "Letter to Senator Ann Cummings and Representative Tony Klein" presented on 11/2/2009

Related Articles 10/23/2009 Vermont legislators seek further review of Entergy nuke restructuring agreement 10/9/2009 Vermont agency recommends state support of Entergy nuke restructuring

Related Power Plants Vermont Yankee

Vermont legislative leaders are calling for a hearing in an effort to better understand New England's electricity market.

In a Nov. 2 letter to state Sen. Ann Cummings and state Rep. Tony Klein, Senate President Pro Tem Peter Shumlin and House of Representatives Speaker Shap Smith requested "that the Senate Finance and House Natural Resources and Energy Committees hold a hearing in the upcoming weeks to gain a fuller understanding of our region's electricity market."

With the state's two largest power supply contracts coming to a close in 2012, Vermonters face the potential loss of two-thirds of their power supply, the legislators said, referring to contracts involving Hydro-Quebec and Entergy Corp.'s Vermont Yankee nuclear power plant.

The nuclear plant's license expires in 2012 and has not yet been renewed, and Hydro-Quebec is phasing out a number of contracts to supply power to Vermont utilities.

"As legislators explore Vermont's power supply options and begin to make decisions, it is critical that there is a keen understanding of our region's wholesale electricity market — the history, future forecasts, supply and demand and neighboring region influences," Shumlin and Smith said. "As we are nearing the 2010 session and a Power Purchase Agreement has still not been reached between Vermont utilities and Entergy Corporation, a comprehensive knowledge of the market and its economic impact on Vermonters is more important than ever."

Entergy has been in negotiations with local utilities Green Mountain Power Corp., a subsidiary of Gaz Métro LP, and Central Vermont Public Service Corp. over future supplies from the nuclear plant.

"With the uncertainty of the future of the state's power supply, the Speaker and Senate President Pro-Tem understand the importance to having an understanding of the electricity market," Thomas Cheney, an aide to Smith, wrote in a Nov. 4 e-mail. "And with a power purchase agreement yet to be reached, [it] is even more critical to study the economic impacts of the market on Vermonters."

The hearing may take place in December, and the legislative session begins Jan. 5, 2010.

The legislators also have requested a hearing to further analyze a memorandum of understanding involving Entergy's proposal to spin off its nonutility nuclear business, which includes the Vermont Yankee plant.