A small utility company wants to sell the Green River Dam in Northern Vermont to the state. But the Scott administration is expressing caution.
The Green River Dam was built in 1947, forming the 653-acre waterbody that serves as the foundation of the Green River Reservoir State Park. According to Vermont State Parks, the reservoir is “one of the longest stretches of undeveloped shorelines in Vermont.”
But the dam has also long been a source of hydropower. That is until last year, when the Morrisville Water and Light Department, a small nonprofit utility that owns the dam, said new state water-quality regulations would cause financial losses and burden ratepayers.
As a result, the utility asked the state to consider buying the dam – something that state officials remain reluctant to do.
Governor Phil Scott, a Republican, addressed potential state acquisition of the dam on Thursday.
“It has to be profitable. You know, Morrisville Water and Light I understand the dilemma they’re in. They’ve invested heavily in the dam and it would cost a lot to decommission the dam. As far as us purchasing that, I don’t know where the resources would come from,” Scott said. “It would be expensive and then we would be on the hook for decommissioning in the future. And I don’t think we’d want it as a generating facility. So I look forward to more conversations in the future on how we work our way out of this together.”
The state could also opt to remove the dam, but Scott said it’s premature to consider that option.
“The dam’s in great shape. It would be very costly. I think that would be very difficult.” Scott added, “I would like to work together with other interested parties in finding a solution to leave the dam where it is and continue to generate power.”
In the meantime, the state is studying the issue. The Agency of Natural Resources’ Department of Environmental Conservation issued a report on August 29th evaluating the benefits and liabilities of state ownership.
Agency Secretary Julie Moore said Thursday the report presents facts on the condition of the dam, maintenance costs, economic benefits and potential options.
“We were pleasantly surprised to find the condition assessment of the dam and dike at Green River that they are in really good condition especially in light of their age,” Moore said. “I think it bears mentioning that the Agency of Natural Resources already has responsibility for about 100 dams statewide. If we were to take on the Green River Dam it would become the second most complicated facility in our portfolio. So it’s not something to be entered into lightly.”
Moore adds that removing the dam is the costliest option outlined in the report.
“With removal costing more than twice as much as the next alternative whether that involves decommissioning the hydropower facility or continuing to operate it. The condition of the dam will continue to require investment and I think that’s where the challenge comes in that the Governor’s alluded to about the economics of operation. I think what’s important for everyone to know though is this is a long-term process,” noted Moore.
In a statement, Morrisville Water and Light General Manager Scott Johnstone said the report provides a path forward for the state and that, “with safety confirmed, costs defined, and benefits undeniable, Vermont should assume ownership.”
