State regulators have reached a settlement they say protects the future of Green River Reservoir State Park by allowing the hydroelectric dam there to keep operating. The news comes after years of litigation and friction between regulators, the utility that owns the dam and environmental groups.
“It's a very good day because we have a path forward,” said Morrisville Water and Light General Manager Scott Johnstone, speaking at the governor’s press conference Wednesday. “Is it perfect from anyone's eyes? Probably not. But what's important here is there is clarity about where we go from here.”
Morrisville Water and Light has long argued that state environmental regulations make generating power at Green River too expensive to be economically viable.
Last year, an analysis commissioned by lawmakers confirmed there is no way to operate the dam profitably under Vermont’s existing water quality standards.
Utility leaders argue that right now, local ratepayers are unfairly footing the bill to maintain a facility that now largely benefits out-of-town visitors.
They asked the state of Vermont to take over ownership of the dam, but Vermont declined. Last year, the utility started the process of decommissioning the facility, which sparked concern about the park’s future.
Morrisville Water and Light announced this week it is withdrawing its bid to decommission the dam and will instead seek a new federal license for the facility with the support of the state.
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Under the terms of the settlement, the utility will start expanding “run of river” operations to mimic more natural flow patterns at two dams along the Lamoille River that are part of the same license as Green River. That work will begin this summer.
Run of river operations are less impactful for aquatic ecosystems, but tend to generate less electricity than pooling and releasing water in big rushes.
Still, Johnstone says this deal creates economic stability for Morrisville Water and Light ratepayers.
“If we lost the ability to generate here, we would have lost economic value in two ways,” he said. “One is generation itself — hydroelectric generation is almost always cheaper than what you can buy on the market.” Johnstone also said the more local hydropower the utility uses, the less ratepayers pay in fees to support grid operations.
For its part, the Agency of Natural Resources has committed to launching a public process to revisit Vermont’s water quality standards for hydroelectric facilities. Dam operators are required to get a water quality permit from the state as part of the federal relicensing process.
Secretary Julie Moore says the agency will look closely at how much water dam operators are allowed to draw down for power generation — a key source of contention at Green River Reservoir for environmental groups and the utility.
Moore says if the Green River Reservoir dam is relicensed under contemporary state regulations, the utility only be allowed to draw down about a tenth of the water it is allowed to now.
Drawing down more water is useful for making low carbon electricity and during periods of high demand, but environmental groups point to concerns about its impact on river ecosystems downstream and on shoreline habitat at the reservoir.
“We are making no promises about the outcome of that process,” Moore said Wednesday. “Changes to our water quality standards are never simple and require careful and deliberate analysis. This settlement, however, gives us the time we need to examine those questions thoroughly and collaboratively and with full public input.”
Moore expects the review of water quality standards to be complete by 2029, at which point Morrisville Water and Light will have the opportunity to update its state water quality application if regulations change.
Vermont Natural Resources Council, American Whitewater, Trout Unlimited and Friends of Green River Reservoir applauded the settlement.
“We’re just so delighted that all the parties have reached an agreement that ensures that Green River Reservoir State Park will survive and that green energy can continue to be produced there,” said Sally Laughlin of Friends of Green River Reservoir.
The state, environmental groups and utility have agreed to present as a united front before federal regulators, and hope they will sign off on portions of the relicensing bid later this year.
