A long-running dispute between a regional utility and the state of Vermont over the fate of the Green River Reservoir — a popular paddling destination and wildlife refuge — has taken a new turn.
Morrisville Water and Light announced Monday that it has begun the process of surrendering its federal license to operate the Green River Dam. If such an application were approved by the Federal Energy Regulatory Commission, the utility said, it would stop generating electricity at the facility but retain the dam.
The nonprofit utility, which serves roughly 4,000 ratepayers in Morrisville and six surrounding rural communities, said in its announcement that its “intent” would be for the state to maintain the dam in the future and manage flood control.
But the state Agency of Natural Resources on Monday pushed back on the utility’s announcement. In a written statement, agency spokesperson Stephanie Brackin said that it “unfortunately” had “come as a surprise” to Secretary of Natural Resources Julie Moore and other agency leaders.
The utility, Brackin said, “makes some significant commitments on behalf of the State, which have not been discussed, nor agreed upon by ANR.” She added that the utility had not provided the agency a transition plan and that there was no money in the state budget to accommodate such a move.
Morrisville Water and Light has been arguing with the state for years over new dam regulations that would protect the local ecosystem but which the utility says would be cost-prohibitive. The dispute could have significant implications for the more than 5,500-acre Green River Reservoir State Park, which surrounds the reservoir impounded by the dam.
In an interview Monday, Morrisville Water and Light general manager Scott Johnstone said that complying with regulations imposed by a new permit would cost the utility — and its ratepayers — roughly $15 million.
“We came to the conclusion that if this permit is going to stand, then, at some point, we have to stop generating power,” he said. “And it’s not worth continuing to try to battle through this.”
Johnstone added, “If you can’t generate electricity there, there’s two uses left: the state park and flood control. Those are state uses.”
But according to the Agency of Natural Resources, such a conclusion is premature. The state has commissioned a study to consider the feasibility of a change in the dam’s operations — and that’s not due until fall.
In the interview Monday, Johnstone said the utility’s announcement was not meant to ruffle feathers.
“I’m sure the agency will be annoyed that we filed this and went down this path, because, you know, they’re gonna feel pinched in the corner,” he said. “That’s not our intent. We just want to start making progress.”
Correction: Due to an editing error, an earlier version of this story was incorrect about the service area of Morrisville Water and Light.
Read the story on VTDigger here: Utility seeks to surrender license to operate Green River Reservoir hydroelectric facility.