Worried about prices, pushback, Westfield G&E locks in Conn. River hydro through 2040
WESTFIELD — Energy costs are rising, and green power — like wind and solar — is under attack, so Westfield Gas & Electric and partner municipal utilities extended a deal with the owners of two hydroelectric plants on the Connecticut River to 2040.
"It's a way for utilities to control as much as they can," said John Tzimorangas, president and CEO of Energy New England.
Energy New England is a consortium including Westfield Gas & Electric and 20 other municipal utilities in Massachusetts, Vermont and Rhode Island. Energy New England and hydro owner FirstLight announced last week the 14-year extension of a deal for power and clean energy credits first entered into in 2020.
FirstLight crews work daily to break up the ice from the gates at the Cabot Station facility in Turners Falls. (Douglas Hook / The Republican)Douglas Hook
The deal is for 197-gigawatt hours per year of clean power, the statement said. That's enough energy to support the year-round power demands of about 20,000 homes.
All Energy New England members, including Westfield, already meet Massachusetts' requirement that municipal utilities obtain 50% of their power supply from carbon-free sources by 2030, Tzimorangas said.
But the goal gets higher for a greater percentage of renewables in future years, and there is increased pushback against the construction of new green resources, like solar farms and offshore wind.
"And even onshore wind," Tzimorangas said. "People don't want it near them."
While he cannot discuss the price because of the contract with FirstLight, Tzimorangas said the pricing is about half what clean energy from new generating sources might cost.
At the Cabot Station in Turners Falls, six large turbines generate electricity using hydropower. (Douglas Hook / The Republican)Douglas Hook
FirstLight spokeswoman Claire Belanger said pricing has been all over the place this month because of the cold snap.
"But our partner (city utilities) are paying around a third or less for our power, because they have locked in pricing through these contracts," Belanger said.
Thomas Flaherty, general manager at Westfield Gas & Electric, said the deal promises stability in price and supply.
"Which is really the key," he said. "We try to have a diverse energy mix."
That includes other noncarbon sources, such as nuclear power plants, in New Hampshire and Connecticut.
Tzimorangas linked his job to that of an investment adviser, diversifying a customer's portfolio.
"You don't want to have too much risk in one place," he said.
Especially for utilities like Westfield that don't have their own power dams.
"In Holyoke, they have a different story, and they have been 80% hydro for basically forever," he noted.
Locking in long-term deals for power is an advantage for municipal utilities.
"Take a look at what prices are going up in the last month," Tzimorangas said.
Under the agreement, the municipal utilities will receive power and equivalent renewable energy credits from FirstLight's Cabot and Turners Falls hydroelectric facilities on the Connecticut River in Franklin County.
FirstLight's Cabot Generating Station in Montague is Massachusetts' largest conventional hydropower facility. First put into service in 1916, the facility comprises six generating units with combined output of 62 megawatts, enough to power more than 50,000 homes.
The Connecticut River at the Turners Falls dam generates electricity using hydropower. (Douglas Hook / The Republican)Douglas Hook
Turners Falls, just upstream of Cabot, consists of five generators with a combined output of 6 megawatts. It was commissioned in 1905.
"As the clean energy future that we're working towards faces new roadblocks, the value of existing clean energy generation has never been clearer," said Justin Trudell, president and CEO of FirstLight, in the statement.
The 21 public power entities participating in the contract include 18 in Massachusetts: Belmont Municipal Light Department, Braintree Electric Light Department, Concord Municipal Light Plant, Danvers Electric Division, Georgetown Municipal Light Department, Groveland Municipal Light Department, Hingham Municipal Lighting Plant, MassDevelopment/Devens Utilities, Merrimac Municipal Light Department, Middleboro Gas & Electric Department, Middleton Municipal Electric Department, North Attleboro Electric Department, Norwood Municipal Light Department, Reading Municipal Light Department, Rowley Municipal Lighting Plant, Taunton Municipal Lighting Plan, Wellesley Municipal Light Plant, and Westfield Gas & Electric.
Also participating are the Block Island Utility District and Pascoag Utility District in Rhode Island, and Stowe Electric Department in Vermont.
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