Shap Smith: Ownership of the Green River Reservoir hydro facility belongs in the hands of the state of Vermont
Nov 26, 2024
This commentary is by Shap Smith of Morrisville. He is the managing partner of Dinse, P.C. and former speaker of the Vermont House of Representatives. Morrisville Water and Light has long been a reliable provider of electricity and essential services to over 4,000 customers in my hometown of Morrisville and five surrounding communities. As a small, municipal, not-for-profit utility, MWL operates with a clear mission: to provide clean, reliable and affordable service to its customers.To that end, MWL operates three energy producing dams, including one at Green River Reservoir. However, due to the water quality certificate conditions imposed by Vermont’s Agency of Natural Resources, hydroelectric generation at the Green River dam is no longer economically viable and, for the benefit of its ratepayers, MWL must transfer it to the state of Vermont.No one doubts that the Green River Reservoir is a state resource which has great natural beauty and recreational value — that is why the state created the Green River State Park in the early 2000s. That said, Morrisville Water and Light, as a municipal utility, cannot and should not have to ask its ratepayers to subsidize the continued operation of the hydro facility at a financial loss. The core mission of MWL is to ensure affordable and reliable services, and its responsibility is to its ratepayers. Its mission is not to maintain a reservoir and state park, however valuable those assets may be.For this reason, it is appropriate and necessary for the state of Vermont to step in and purchase the Green River Reservoir hydro facility. The reservoir and state park serve the broader public interest and provide benefits to all Vermonters, not just MWL’s ratepayers. The state’s involvement is not just logical, it is the environmentally and fiscally responsible thing to do.There is ample precedent for state ownership of hydro infrastructure. The state of Vermont already owns and maintains a dam that is operated by Washington Electric Coop. This structure demonstrates the viability of public ownership for the greater good without burdening municipal utility ratepayers with costs they should not have to bear.Moreover, the Green River Reservoir and dam are not just recreational assets. They play a critical role in flood mitigation — a growing concern as we face more frequent and intense weather events. Investing in the dam’s future is not just about preserving a reservoir for paddlers and anglers, it is about protecting our infrastructure and reducing future financial risks from flood damage. The long-term costs of not acting could far outweigh the short-term expense of purchasing and maintaining the dam.I know all too well that state budgets and resources are always under pressure, but investments like this are precisely what governments are for — managing public goods that benefit the wider community and ensuring the continuity of vital infrastructure. The Green River Reservoir and dam are significant economic, environmental and safety assets for our region and for the state as a whole.Morrisville Water and Light should not have to choose between its mission to provide affordable services and the preservation of a critical piece of infrastructure that benefits all Vermonters. The state is best positioned to ensure that this resource is preserved for public use, flood protection and environmental stewardship, without shifting the burden onto a small, local utility and its ratepayers.The financial reality is that MWL cannot continue to operate the hydro facility under current conditions without significant losses, and it is not fair or prudent to ask its 4,000 ratepayers to shoulder that burden. The Green River Reservoir hydro facility belongs in the hands of the state of Vermont, where it can continue to serve the broader interests of the people, the environment and our communities.For the sake of our local economy, public safety and the long-term well-being of our state, I strongly urge Vermont to purchase the Green River Reservoir hydro facility and ensure its preservation for future generations.Read the story on VTDigger here: Shap Smith: Ownership of the Green River Reservoir hydro facility belongs in the hands of the state of Vermont.