Hydro Committee Encouraged By Barlow’s Trip to Washington, Virtual Net Metering Bill

Those looking into the possibility of bringing hydroelectric power to the upper and lower dams in Collinsville were cautiously optimistic this week about two recent developments that could boost the feasibility of the process.

First Selectman Richard Barlow is headed to Washington, D.C., today to testify before the U.S. Senate’s subcommittee on water and power on the Collinsville Renewable Energy Promotion Act, a congressional effort to give the town more permanent Federal Energy Regulatory Commission Licenses to operate the dams. The town currently has preliminary permits.

Barlow told the Board of Selectmen Wednesday night that he was invited down and will travel at his own expense,

“I think it's something – personally – that’s very important to the town,” Barlow said.

Barlow said the state’s congressional delegation has been supportive — with U.S Rep. Christopher Murphy’s (D-5th) support in the house and now U.S. Sens. Richard Blumenthal (D-CT) and Joseph Lieberman (I-CT)  in the senate. Blumenthal is scheduled to speak today as well.

At a meeting of Canton Hydro Project Advisory Committee Tuesday night, members learned of the development and also discussed state Senate Bill 1243, which, pending Gov. Dannel Malloy’s signature, will allow municipalities to use virtual net metering for up to five facilities in town.

Virtual net metering allows power produced at a facility to be applied to other facilities at a retail – rather than wholesale – rate. The result is a “virtual” distribution of power at full retail value. 

Malloy spokesman David Bednarz said Wednesday that the governor is still expected to sign the state energy bill but due to the number of measures passed in the last few weeks, the exact time it reaches the office is not known.

Although one committee member said Tuesday the five locations were no longer part of the bill, section 121 states, "The municipal customer host shall not designate more than five beneficial accounts.”

The town, however, would only receive wholesale rates for excess power.

“So there’s an economic impact,” Marty Kaplan said.

But committee member David Madigan said he felt the town’s five or six largest buildings generate 80 to 90 percent of the power Canton uses as a municipality.

And with the town using about 3.2 million kilowatt hours and the upper dam producing as much as 2.8 million, the numbers could work, Madigan said. 

The committee also briefly discussed the other towns – Burlington and Avon – that could potentially be involved in power produced at the lower dam.

Members were encouraged that the Avon Town Council was at least receptive to the concept at a recent meeting.

“The council at least seemed receptive – conceptually – to the idea,” Kaplan said.

Committee members said there could be some potential issues with the bill’s language should Burlington and Avon want in on the project, since power at the lower dam would be generated in Avon but potentially serve both. If Canton holds the licensing, it could also bring up issues. 

Madigan said the answer may lie in creating a quasi-public agency if all three towns were to go forward with the project but members agreed it would be an area for attorneys to explore should the project get to that point.

And there are many financial and logistical hurdles and technical details to figure out before hydropower would be utilized but members were encouraged by the latest developments.

Recently Massachusetts-based GSA GeoEnvironmental, Inc., completed a  “Pre-Feasibility Study for Re-Powering the Upper and Lower Collinsville Dams Along the Farmington River.” Funding for the study came from a $50,000 grant from the Connecticut Clean Energy Fund.

According to the study, the current estimated costs for redeveloping hydroelectric power at the Collinsville sites run from $4.56 million to $6.59 million to $7.10 million.

Town officials have also said there were no “fatal flaws” in the study and the report indicates that virtual net metering would make the return on investment much more attractive. Advocates also say many grant opportunities may exist to offset the initial construction costs.  

On Tuesday, the hydro committee also heard briefly from Andrew Pallotto, of Advanced Energy Group’s East Coast Division, a company that requires piggybacking a geothermal aspect to projects. Pallotto said the company has an 87-percent success rate in getting grants from the Department of Energy. 

Committee members said they appreciated the information and the town’s project administrator Jeff Shea said a few companies have already expressed interest in working with the town should the project move forward.

And the state energy bill also makes it easier for the town to pursue grant opportunities, state Sen. Kevin Witkos told selectmen Wednesday night. 

Barlow also agreed the town could benefit from the virtual net metering, which Barlow praised him for pursuing for municipalities after the power companies opposed the idea of a blanket arrangement.

Applying it to town facilities will help residents financially, Witkos said. 

“That benefits all the taxpayers in town,” he said.