World in Brief
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#1 Mar 13, 2010
So everyone is applauding this as such a great deal with hydro quebec and shows we do no need VY. I have a few questions and statements on this. VY offered $62/MW 24/7/365. Shumlin called this a "ripoff". Yet him and others think this deal with hydro quebec at above $65/mw a great deal. I say above $65/mw as that is the current price and they said "Vermonters will not see a DRAMATIC increase." Reading between the lines that means they will see an increase though. It is also tied to market rates so as the economy gets better and rates go up (think supply and demand and what loosing VY does to supply) then the price goes up. Also it is only for 16 hours a day which means we will have to use other generation to get power during the other 8 hours a day.
So my question is $62/MW a ripoff or is it a great price? It can't be both.
"This fact makes the argument for another 20 years of operation for the Vernon reactor a much tougher sell."
So lets do some math on the subject and see if VY is a hard sell. I will use $62/mW as VYs price and $65 (he current price) as the new HQ price. I am also going to act as though HQs new contract is giving us power 24 hours a day to be able to compare better. Spot prices will be higher then HQ's contract thus we know the savings will be higher then I calculate.
$3 difference in price per MW per hour. VY is offering 115MW so that is the number I will use.
$3/MW * 115MW *24hrs*365 days =$3,022,200
$3,022,200 * 20 year contract =$60,444,000 in direct savings to the rate payers over the 20 year life extension at VY.
Saving the rate payers $3 mill a year over 20 years isnt a good selling point?
Ok now remember that the negotiations were not over with VY. Lets just for the sake of looking at the overall picture, that VT is able to negiotiate with VY the same amount of power as HQ (225MW), but at the price VY offered ($62). I did the math (feel free to check it).
$118,260,000, yes $118 million plus savings to the RATEPAYERS over 20 years (almost $6 million a year.)
Now remember this is an offered price from VY, I am sure after negotiations that the price will be a little lower then that. If they can negotiated the price down to $60 MW then the savings is:$197 million over 20 years, or almost $10 million a year.
Also dont forget that VY pays millions in taxes to VT, HQ does not. VY funds the renewable energy fund in VT to the tune of millions of dollars a year, HQ does not.
We dont want to send our money to a out of state company but we have no problems sending it to an out of country company. That makes little sense to me.
I think it is important to have power from HQ in order to help keep VT green, but we also need power from VY in order to keep VT green and our rates within reason.
#2 Mar 14, 2010
What this agreement is doing is telling young people of Vermont that if they want a good paying job, they will have to elsewhere.
The price of electricity is THE major factor in companies locating in one state or another. And the fact that modern companies DRINK electricity today, means no good paying private sector jobs are on the horizon anytime soon.
Raise your children and then say goodbye to them. After a while, maybe they'll make enough money to have a vacation condo in Vermont and come back to visit.
#3 Mar 14, 2010
This is good news about Hydro Quebec. Vermont is assured of a steady energy supply far into the future. Never mind the few sour grapes hardcore complainers.
#4 Mar 14, 2010
NCW thanks for calling me a hardcore complainer. I never said it was a bad deal. I think it is a good deal to have long term power contracts that are from green energy. That being said I was just making light of the pricing issue. Shumlin said that a $62 offer (which I have found out was a $61 offer), yet $65+ is a great price. Just trying to figure out his math.
Here is a video of Shumlin talking about the bad price from VY....oh yes and getting caught lying.
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