Three Utilities Solicit New Energy Contracts
November 14 2008 - 10:00AM
Marketwired
Vermont's three largest electric utilities today issued a joint
request for new power supply resource proposals, casting a wide net
across the Northeast and Canada, and the state's two largest
utilities issued an additional request for bids to supply more
energy in case Vermont Yankee is unavailable.
Central Vermont Public Service (NYSE: CV), Green Mountain Power
and Vermont Electric Cooperative said today's solicitations would
be the first of several staggered RFPs issued over the next couple
of years.
In one RFP, the utilities are jointly seeking up to 100
megawatts of energy, up to 40 megawatts each for CVPS and GMP, and
20 megawatts for VEC. In the second RFP, CVPS is seeking an
additional 100 megawatts and GMP an additional 50 megawatts. The
utilities expect to issue RFPs in 2010 and 2011 as well, to stagger
the start and end dates of various portfolio components.
"This is part of our broader integrated resource planning
efforts, which are designed to ensure we continue to provide safe,
clean, reliable and affordable energy in the years ahead," the
utilities said in a joint statement. "As a state, we enjoy arguably
the cleanest power supply in the country, with rates that are the
lowest in the Northeast. Our power-planning efforts are intended to
preserve those competitive advantages to the greatest extent
possible."
The three companies rely heavily on energy from Hydro-Quebec and
Vermont Yankee, but contracts with both suppliers end between 2012
and 2016. Vermont Yankee's license, which expires in 2012, is being
considered for renewal. While contract negotiations are under way
for new power supplies with both those suppliers, the utilities are
also planning to take this opportunity to diversify their
portfolios in the years ahead.
CVPS, GMP issue second request
The second RFP by CVPS and GMP for 150 megawatts of new energy
is contingent on the outcome of Vermont Yankee relicensing and
contract negotiations.
"We want to be prepared in the event Vermont Yankee is not
relicensed, or negotiations fail to produce an acceptable power
contract," CVPS President Bob Young said. "Last fall, I made a
commitment to legislators that I'd come back to them in January
with information on the cost impacts if we were to lose Vermont
Yankee, and this request for bids will help us understand the scale
of that impact."
Young and GMP President and CEO Mary Powell said they continued
to view Vermont Yankee as a solid, reliable and affordable asset,
but issued the RFP to help prepare for the possibility of its
loss.
"Vermont Yankee provides us power that has low emissions and is
very reliable," Powell said. "Assuming it can pass state and
federal reviews, we hope it will continue to be an option, but we
must prepare for a different outcome."
Several factors to be weighed
The utilities said that among the factors to be considered in
both RFPs are price, volatility or stability, fuel diversity,
environmental attributes, the results of the state's public
outreach process and reliability.
"Regardless of the outcome of the VY debate, we want to expand
the pool of potential suppliers to ensure the best power mix
possible," the utilities said. "We may each weigh the value of the
proposals differently, but we will give added weight to reliable,
renewable and stably priced proposals. Each company will make its
own decisions about accepting or rejecting the proposals, but we
all put extra value on non-fossil, renewable supplies from diverse
sources."
"Fuel diversity and credit requirements will be considered," the
utilities said. "Energy from small or medium-sized renewable
projects will be given more weight than energy from large fossil
fuel plants. New projects that can defer or supplant the need for
transmission and distribution expansion or upgrades will be
favorably evaluated."
The RFPs are just one of several activities the utilities are
taking to ensure a solid energy future for Vermont. CVPS, GMP and
VEC, along with Washington Electric Cooperative and VPPSA,
sponsored a study of the possibility of building a new in-state
generator, and all the companies are working to develop renewable
energy such as CVPS Cow Power(TM) and Greener GMP.
The RFPs are being distributed to all New England Power Pool
participants, power suppliers and developers, which includes dozens
of companies in the region. "Our hope is to notify winning bidders
in late March," the utilities said.
More information about participating in the RFPs can be found at
www.cvps.com.
Contacts: CVPS: Steve Costello (802) 747-5427 GMP: Dotty Schnure
(802) 655-8418 VEC: Kathryn Kantorski (802) 730-1129
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