Give the Cape Light Compact's power back to the people

Board and other officials attempting to derail legislation by various means

By Christopher R. Powicki

Local, regional, and state officials tried to put the power in the hands of the people when they established the Cape Light Compact. Consistent with the Compact’s responsibility to protect consumer interests in the deregulated electricity marketplace, Rep. Matt Patrick recently filed legislation to give Cape and Vineyard residents the opportunity to determine who will represent their interests on the Compact’s Governing Board.

Board members and other officials are attempting to derail the legislation by various means, most notably by suggesting that it represents an attempt to advance the wind project proposed for Nantucket Sound.

When those turbines start spinning, some Massachusetts consumers will be able to purchase power at a price that is well below current rates and will remain the same for 22 years

Those making this cynical argument are simultaneously pursuing a course of action that could inflict long-term harm on local communities.

Other areas will get our cheaper power

The Compact is not exploring a power supply contract with Cape Wind Associates, despite its fiduciary duty to do so as a municipal aggregator. Meanwhile, other parties are surely salivating at the prospect of securing an agreement with Cape Wind like the one established between a consortium of municipal utilities and the developer of a wind project planned for Berkshire County.

When those turbines start spinning, some Massachusetts consumers will be able to purchase power at a price that is well below current rates and will remain the same for 22 years.

Although Cape Wind has expressed an interest in selling electricity to local consumers, it will jump on the first good offer: A developer needs to secure financing, and this company’s very existence proves a willingness to act aggressively on business opportunities.

Compact's inaction puts cape communities at financial risk

The Compact’s inaction increases the risk that if the Cape Wind project gets approved, local communities will bear all of its adverse impacts while losing out on its most tangible benefit-a long-term, fixed-price contract to buy low-cost, emissions-free electricity. Those who control the Compact’s power supply decision-making processes are putting narrow political and personal interests ahead of the interests of all Cape and Vineyard consumers.

These reasons alone merit the institutional restructuring called for by the proposed legislation, but making Compact Governing Board members directly accountable to voters is the right thing to do for reasons that go beyond Cape Wind. Consider the following issues related to the Compact’s recently expired supply contract with Mirant Americas Retail Energy Marketing.

These actions increased the January electric bills of the Compact’s consumers by a total of about $125,000

Helping local consumers save money is critical, but the decision to buy cheap and dirty power from a subsidiary of the corporation that owns the Canal Generating Station was a mistake from the start: Every hour, this facility emits thousands of pounds of pollution into local environments and hundreds of tons of greenhouse gases into the atmosphere.

Compact officials did not account for adverse impacts like these when they decided to get in bed with Mirant, and they did not tell Cape and Vineyard consumers about them despite state-mandated disclosure requirements. Until recently, the Compact’s website even suggested that the Canal plant is an environmentally benign facility.

This misleading information was taken off-line last December, at about the same time the Compact’s relationship with Mirant was scheduled to end. However, the Compact had failed to synchronize the end of this contract and the start of its new power supply agreement with ConEdison Solutions. To bridge the gap, the Compact opted to sign a transitional 1-month extension with Mirant at a 25% higher rate, rather than give its consumers the opportunity to switch to another supplier offering a lower price.

Avoiding fiduciary duties, ignoring  emissions

These actions increased the January electric bills of the Compact's consumers by a total of about $125,000. Instead of informing them directly, the Compact added some fine print to a late December advertisement touting its new supply agreement. Attentive and sharp-eyed consumers could have learned that their bills would go up-but not why the increase occurred or whether it could have been avoided.

A second ad, published in late January after some consumers were issued incorrect bills that did not include the 25% rate hike, was even more oblique. However, it did include the following statement: “THE CAPE LIGHT COMPACT DID NOT HAVE A PART IN THIS ERROR.”

Avoiding fiduciary duties, ignoring the adverse effects of power plant emissions, failing to comply with regulatory requirements, publishing misleading information, making expensive errors, keeping constituents in the dark, sticking them with the bill, and denying responsibility are not the kinds of things that impress voters.

Transforming the Compact Governing Board from an appointed into an elected body will ensure that its members are accountable and that consumer interests are understood, respected, and protected-for the power of the people can best be wielded by those the public itself empowers.

Christopher R. Powicki is a Cummaquid consumer and the principal of Water Energy & Ecology Information Services, a consulting firm serving public and private sector clients. He recommends that Cape and Vineyard electricity consumers spend a few extra dollars each month to purchase the Cape Light Compact’s 100% green product-the best value on green power attributes in Massachusetts. He does not support the Cape Wind project as proposed but would like wind turbines to be visible from Nantucket Sound beaches just as the Canal plant is visible from Cape Cod Bay beaches. He believes that residents, leaders, and institutions must move “beyond Cape Wind” to ensure that Cape & Islands communities maximize benefits from regionally abundant renewable resources. See the NOTES below.

Notes:
1 Personal communication from Margaret Downey, administrator, Cape Light Compact and Barnstable County, November 2, 2004.
2 Press release from Massachusetts Municipal Wholesale Electric Company, “Wind Contract Benefits MMWEC Municipal Utilities, Berkshire Project Developer,” December 6, 2004. (http://www.mmwec.org/images/2004newsrelease/041206.pdf)
3 Report prepared for Mirant Canal LLC by Earth Tech, Inc., for submission to Massachusetts Department of Environment Protection, “Canal Station: Emission Control Plan Transmittal No. W025308, Revision No. 2-December, 2002.” 
4 Order to the Cape Light Compact and Member Communities from the Massachusetts Department of Telecommunications & Energy, August 10, 2000. (http://www.mass.gov/dte/electric/00-47/compact_order.htm)
5 Letter and attachments from Christopher R. Powicki to Robert Mahoney, chairman, Cape Light Compact Governing Board, November 10, 2004. In December, follow-on remarks regarding inadequate disclosure, misleading claims about the Canal plant, and the adverse impacts of this facility were presented to the Barnstable County Commissioners.
6 Letter from Robert Mahoney to Christopher R. Powicki, December 14, 2004.
7 Letter from Mirant Americas Retail Energy Marketing LP to Cape Light Compact, December 6, 2004. (http://www.capelightcompact.org/pdfs/LetDTEMirantTransitionFINAL.bcy.pdf)
8 Letter from Cape Light Compact to Massachusetts Department of Telecommunications & Energy, December 7, 2004. (http://www.capelightcompact.org/pdfs/LetDTEMirantTransitionFINAL.bcy.pdf)
9 Advertisement published by Cape Light Compact in local newspapers, late December 2004. 10 Advertisement published by Cape Light Compact in local newspapers, late January 2005.