Vermont study says buying Canadian hydro dams would be too expensive

big bend hydro dam, missouri river elp

MONTPELIER, Vt. (AP) — The state of Vermont should not try to buy a series of 13 hydroelectric dams on the Connecticut and Deerfield rivers, but should look for ways to work with the eventual owner to buy electricity, a study has said.

TransCanada bought the 13 hydroelectric dams from USGen New England in 2005. It now wants to sell the dams to help finance the purchase of a pipeline.

The state considered buying the dams more than a decade ago. That interest was rekindled in March when TransCanada said it was trying to sell power generation facilities in the United States. But state officials have since said the purchase price, estimated at $800 million to $1.2 billion would be too steep.

In a report issued Tuesday, the HydroPower Acquisition Working Group, which was tasked with studying the possible purchase, said the cost of the dams and costs associated with preparing a bid made the purchase unfeasible.

The report said the state Department of Public Service should instead approach the eventual owner to determine if there was interest in a long-term power purchase agreement.

Any agreement "would need to clearly provide a benefit to Vermont ratepayers and would need to be pursued in consultation with the state's electric distribution utilities to ensure that such a commitment matches the power supply needs of the utilities," the report said.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Storm Impact Analytics for Utilities

In recent years, increasingly volatile and extreme weather events have significantly impacted the...

Reach New Heights: Six Best Practices in Planning and Scheduling

These 6 best practices have created millions of dollars in value for many global companies. Learn...

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Latest Energy Jobs

View more Job Listings >>