TO THE EDITOR: THE NORTHFIELD NEWS THERE IS MUCH discussion these days regarding Vermont Yankee’s future. Vermonters would like to be assured of having stable and relatively low electricity prices through 2032, the span of the plant’s renewed license. To achieve this, a long-term, mutually beneficial power agreement would be ideal. Agreement is a key word in this process.

The main players in these negotiations are Vermont Yankee, Central Vermont Public Service and Green Mountain Power. And to date, they haven’t agreed on a price or formula. This is not really surprising in the contract world. Think of school contracts and how lengthy and heated they can be and these typically are only for one or two years. Here, we are talking about a 20-year energy deal from which all parties want to benefit, and should benefit, while taking into account an array of uncertainties.

In addition, the Vermont Department of Public Service is heavily involved in voicing their expert opinion on how this moves forward and the Public Service Board (PSB) has the legal responsibility for approving any proposal or offer in the interest of “public good.”

The legislature and politics have also played heavily in Vermont Yankee’s future. The legislature has given itself the authority to cast an up or down vote on Vermont Yankee’s future, before the PSB decides whether to issue a certificate of public good for its continued operation.

This past Friday Entergy made an offer of 6.1 cents per kilowatt hour. This is up from 4.2 cents per kilowatt hour they currently charge utilities under a power purchase agreement entered into in 2002. The 6.1 cents is actually somewhat less than what the utilities pay for power from Hydro-Quebec, the state’s other large supplier.

For perspective, for about 75 percent of the time over the past five years, electricity has cost more than 6.1 cents per kilowatt hour on the spot market. And, the prospect of a national carbon tax could significantly increase fossil fuel prices in the years ahead, which gives further impetus for Vermont to keep Vermont Yankee and Hydro-Queìbec as part of the portfolio.

As impossible as it is to fully predict, it is reasonable to believe that the spot market will rise significantly over the next 20 years and certainly above 6.1 per kilowatt hour. Another appeal of this offer is that the legislature has also enacted a guaranteed purchase price for wind and solar at 20 cents and 30 cents per kilowatt hour respectively for 50 megawatts of power. CVPS and GMP are required to buy this power at this price.

So is 6.1 cents for twenty years a good deal? Today, according to the U.S. Energy Information Administration, Vermont has the lowest electricity costs of the six New England states, with rates 18 percent lower than the region. As a result of the in-force power purchase agreement between Vermont Yankee and the utilities, Vermonters have paid $324 million less in electricity costs for the period 2002-09 than they would have without such an agreement. A fixed, predictable price has huge economic benefits to businesses and consumers in these trying economic times and beyond.

Let’s also not forget that Vermont has the lowest carbon footprints in the nation. While renewable energy should have a place in Vermont’s energy future, it can’t replace Hydro- Queìbec’s and Vermont Yankee’s necessary, reliable, and clean 24/7 baseload power. In fact, without Vermont Yankee’s in-state power, renewable power in Vermont would most likely be heavily supported by carbon emitting 24/7 baseload fossil fuels from other states, as wind and solar account for less than one percent of the state’s power and will take a while to significantly expand. And for those thinking of the electric car for future travel and environmental concerns, it makes no sense to power these cars with electricity produced by natural gas or coal.

It is also important to remember that Vermont Yankee provides 650 good paying jobs and contributes $100 million into the Vermont economy each year. Indeed, the jobs and economic benefits that Vermont Yankee provide to the state are compelling reason enough for the plant to continue to operate.

Elected officials and policy makers should keep these important matters in mind, while also recognizing the accomplishments and expertise of the PSB on the state’s electricity rates. To reiterate, it is the PSB and Department of Public Service that is responsible for Vermont having New England’s lowest electricity rates and $324 million in savings from Vermont Yankee. Putting politics or perceived political gain above sound energy planning is risky and irresponsible.

The deal isn’t here yet. However, there’s movement. We can only hope that some good old fashion common sense is in play here and that there is some positive resolve of differences.

Vermonters should pay very close attention to this energy discussion. In these treacherous economic times, there are likely to be severe financial consequences statewide to closing Vermont Yankee. Vermont’s economy and recovery are at risk.

BRAD FERLAND

President Vermont Energy Partnership