Addison Natural Gas Project

Transcription

1 0 Addison Natural Gas Project Addison County Regional Planning Commission November 14, 2012

2 Outline Vermont Gas The Addison Natural Gas Project Overview Route Design Town Benefits Route Sections ACRPC Comments Next Steps 1 1

3 Outline Vermont Gas The Addison Natural Gas Project Overview Route Design Town Benefits Route Sections ACRPC Comments Next Steps 2 2

4 About Vermont Gas Vermont s only natural gas utility Regulated by Public Service Board Holds franchise for all of Vermont Over 45 years experience building and operating natural gas pipelines that deliver clean, economical and efficient energy Invested $50 million in the state over the past 5 years Established in 1965 after a state initiative to evaluate bringing an economical alternative energy source to Vermont to support economic development 3 3

5 We Serve 45,000 customers in Northwestern Vermont 4 4

6 Vermont Gas Serves Vermont s Major Businesses 5 5

7 Natural Gas is a Cleaner Fuel 250, , ,000 C02 Pounds of emissions produced per billion Btu 117, , , , Particulate Matter Pounds of emission produced per billion Btu , , Natural Gas Oil Propane Wood (Dry) Natural Gas Oil Propane Wood (Dry) Sulfur Dioxide Pound of emission produced per billion Btu Nitrogen Oxides Pounds of emission produced per billion Btu Natural Gas Oil Propane Wood (dry) Natural Gas Oil Propane Wood Based on residential heating equipment commonly in use in Vermont Source: U.S. Energy Information Administration, U.S. EPA, and Vermont Agency of Natural Resources

8 Invest $2 Million/Year in Energy Efficiency $24 Million invested since 1992 Energy Efficiency Services Include: Home and Business Energy Audits Equipment Rebates Technical and Financial Assistance Results: Served Over 24,000 Homes and Businesses Saving Customers Over $12 Million Per Year Eliminated 490,000 tons of Carbon Dioxide Eliminated 384 tons of Nitrogen Oxides Nationally Recognized by ACEEE and DOE for Exceptional Energy Efficiency Programs Current regulatory proceeding looking at ongoing structure 7 7

9 Forecast: Strong Supply, Low Prices $/MMBTU U.S. Natural Gas Wellhead Price vs WTI Oil Prices Data Source - U.S.Energy Information Administration Jan 01 Jul Jan 02 Jul Jan 03 Jul Jan 04 Jul Jan 05 Jul Jan 06 Jul Jan 07 Jul Jan 08 Jul Jan 09 Jul Jan 10 Jul Jan 11 Jul Natural Gas WTI Oil 8 8

10 Competitively Priced Natural gas costs 44% less than heating oil, 50% less than propane 9 9

11 Vermont Gas Vision Where we are going Natural gas clean & affordable attributes, combined with a strong supply position it well to meet the nation s future energy needs In Vermont, natural gas has the potential to reduce both its over-dependence on oil and the state s greenhouse gas emissions

12 Long Term Approach Long Term Expansion Concept: Extend natural gas service to Addison & Rutland, Vermont Interconnect to U.S. system Challenges: The rural nature of the state limits infrastructure development Small markets and large investments make major expansions economically challenging Plan Work with existing and new communities to further expansion in the state

13 Outline Vermont Gas The Addison Natural Gas Project Overview Route Design Town Benefits Route Sections ACRPC Comments Next Steps 12 12

14 Addison Natural Gas Project MISSION The goal of the project is to expand natural gas service to Addison County in a manner that maximizes economic, environmental and reliability benefits to stakeholders while maintaining a strong competitive advantage, excellent customer satisfaction, superior safety and positions Vermont Gas for future expansion

15 Addison Natural Gas Project: Evolution Initial plan was to extend service to Middlebury and Vergennes Working with communities to identify best route Approached by Ticonderoga Paper Mill to provide service to the mill Reached a long term agreement where the paper mill will pay for development of a pipeline to the NY facility No cost to Vermont ratepayers Extends transmission pipeline 17 miles closer to Rutland at no cost to Vermont ratepayers 14 14

16 Addison Natural Gas Project: Benefits Economic benefits Reduces overall energy cost by $44 million over 20 years Will help to create and retain jobs Environmental benefits Reduces 6.3 million gallons of oil use per year in Vermont Eliminates over 16,000 tons of greenhouse gas emissions per year Supports key stakeholders and employers who are calling for natural gas expansion Can provide long term reliability benefits Rutland Service Potential interconnection to US natural gas system 15 15

17 Ticonderoga Paper Mill Service: Benefits Lowers the mill s fuel costs by up to 40% Helps reduce regional greenhouse gas emissions Supports regional business with 650 employees and 600 other jobs Extends Vermont s transmission pipeline 17 miles closer to Rutland No cost to Vermont ratepayers 16 16

18 Addison Natural Gas Project: Phases Phase 1 Transmission pipeline from Colchester in Circ corridor to Williston; south generally along VELCO and roadway corridors to Addison Permits to be filed for in December 2012 Transmission Service to Cabot of Middlebury in 2014 Distribution to Middlebury & Vergennes in 2015 Phase 2 Transmission south of Middlebury Lateral pipeline west to Ticonderoga Paper Mill Service to paper Mill in 2015 Route not yet determined Permits to be filed for in summer of

19 Description Transmission Mainline Pipeline: About 43 miles of 12-inch transmission mainline in Chittenden and Addison counties 3 Gate Stations Distribution Mainline: Approx. 4.8 miles of distribution pipeline Local Distribution Pipeline Networks: Small diameter distribution pipeline networks Ticonderoga Paper Mill 10 transmission mainline; route to be determined; looping north Vergennes Middlebury

20 Phase 1: Project Schedule Addison County Expansion Project Conceptual Design Project Funding Initiative Preliminary Design Stakeholder Engagement 248 Preparation Engineering Environmental Outreach 248 Looping 248 Proceeding Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Order Materials? Construction Looping Customer Turn-ons Addison 19 19

21 Outline Vermont Gas The Addison Natural Gas Project Overview Route Design Town Benefits Route Sections ACRPC Comments Next Steps 20 20

22 Route Design Goal - to develop a permitable pipeline system that will minimize environmental impacts, protect culturally sensitive sites and use most appropriate construction techniques for the area. How - Using a multi-disciplinary approach, combine inputs from environmental experts, archaeological experts, survey teams and design engineers

23 Route Design Considerations Environmental Use data from pre-existing surveys and ongoing field studies to identify: Wetlands, rivers, streams & aquifers Rare, endangered or threatened species Forested areas Other areas required by law Archaeological Combine predictive modeling, previously obtained data and ongoing field studies to minimize impact & avoid sensitive areas

24 Route Design Considerations Survey Determine land characteristics and identify areas most suitable for construction including: Rock and ledge Hills and slopes Design Engineers will blend inputs and design an underground system that is safe, reliable and minimizes impacts to the area 23 23

25 Outline Vermont Gas The Addison Natural Gas Project Overview Route Design Town Benefits Route Sections ACRPC Comments Next Steps 24 24

26 Monkton Potential to serve 75 homes, 5 businesses & the local school Natural gas service can save potential of between $63,000 - $106,000 per year for Monkton* Focus will be on areas of population density Taxable facilities include: 7.7 miles of transmission near VELCO or Public Corridor 5.9 miles in public ROW 1.8 miles in private ROW *Fuel gallon and Vermont Gas current rates, 60% - 100% service 25 25

27 New Haven Potential to serve 100 homes & 25 businesses Natural gas service can save potential of between $102,000 - $170,000 per year for New Haven* Focus will be on areas in Town Center Can provide some service for Route 7 Businesses Taxable facilities include: 10 miles of transmission in or near VELCO corridor (7 Miles public, 3 miles private ROW).8 miles of distribution (for Vergennes only) Gate Station at Plank Road (55 x 55 fenced-in area) *Fuel gallon and Vermont Gas current rates, 60% - 100% service 26 26

28 Vergennes Potential to serve 860 homes & 130 businesses Natural gas service can save potential of between $1.35M - $2.25M per year for Vergennes* Focus will be on areas in Town Center Taxable facilities include: In-town distribution & services *Fuel gallon and Vermont Gas current rates, 60% - 100% service 27 27

29 Middlebury Potential to serve 1700 homes & 400 businesses Natural gas service can save potential of between $5.1M and $8.5M per year for Middlebury* Focus will be on areas in Town Center Can provide service for some Route 7 Businesses Taxable facilities include: 1.06 miles of transmission pipeline.82 miles of distribution pipeline Gate Station (55 x 55 fenced-in area) *Fuel gallon vs. Vermont Gas current rates, range 60% -100% penetration 28 28

30 Outline Vermont Gas The Addison Natural Gas Project Overview Route Design Town Benefits Route Sections ACRPC Comments Next Steps 29 29

31 Route Overview: Monkton Section 1 Davis Rd Pond Road 30 30

32 Route Overview: Monkton Section 2 Pond Road 31 31

33 Route Overview: Monkton Section 3 Monkton Rd 32 32

34 Route Overview: Monkton Section 4 Monkton Rd Old Stage Rd 33 33

35 Route Overview: Monkton Section 5 Old Stage Rd 34 34

36 Route Overview: Monkton Section 6 Old Stage Rd Parks Hurlburt Rd 35 35

37 Route Overview: New Haven Section 1 North Street Plank Road 36 36

38 Route Overview: Plank Road to Vergennes Vergennes Plank Rd 37 37

39 Route Overview: New Haven Section 2 North Street Main Street 38 38

40 Route Overview: New Haven Section 3 Town Hill Rd 39 39

41 Route Overview: New Haven Section 4 Hunt Rd 40 40

42 Route Overview: New Haven Section 5 River Rd 41 41

43 Route Overview: Middlebury Middlebury Route 7 Weybridge Gate Station area Exchange St 42 42

44 Gate Station: Examples Gate stations reduce the pressure of the transmission line to distribution operating pressure. When reducing pressure the temperature of the gas drops, requiring heating to prevent ice formation. Equipment may include meters, pressure reduction equipment, heaters

45 Outline Vermont Gas The Addison Natural Gas Project Overview Route Design Town Benefits Route Sections ACRPC Comments Next Steps 44 44

46 ACRPC Comments Service to Town/Village Centers Vermont Gas will serve Middlebury & Vergennes by 2015 (Permits dependent) Service to Monkton, New Haven & Bristol as agreed to with each Town; as feasible and within reasonable time after 2015 Vermont Gas will need support from impacted towns with local permits beginning in Emergency Response Issues: Request for 10 Minute response time; equipment, training VGS has 24/7 gas control technical call center open to provide support as needed Regulatory standard is 30 minutes during business hours, 40 after hours VGS will provide and support ongoing training as requested, participate in meetings as necessary Equipment should be covered by tax revenues Construction will be to DOT code requirements and reviewed by the DPS and approved by PSB Confined spaced training is not applicable as the pipeline is not in a confined space as defined in regulation. Gate stations are behind fences an accepted industry standard

47 ACRPC Comments, Continued Energy Efficiency: customer are interested Vermont Gas Efficiency Program will serve our customers Natural Resources Vermont Gas believes that the issues raised by the Natural Resources Committee are fully covered in the various regulatory processes the project will move through. Since the program s inception in 1992, Vermont Gas has invested over $24M in efficiency, serving over half of our customers. Service focus is on thermal efficiency; EVT provides electric efficiency Air Quality addressed in regulations, codes and laws 2. Noise - addressed in regulations, codes and laws 3. Geologic Will be built to Class 3 as needed by regs 4. Archeological - addressed in regulations, codes and laws 5. Soils - addressed in regulations, codes and laws 6. Water resources - addressed in regulations, codes and laws 7. Wetlands & vegetation - addressed in regulations, codes and laws 8. Wildlife & Fish - addressed in regulations, codes and laws 9. Visual resources - addressed in regulations, codes and laws 10. Social & economic - addressed in regulations, codes and laws 11. Recreation - addressed in regulations, codes and laws

48 Next Steps: Phase 1 Continued Community Outreach Property permission negotiations with Landowners Complete System Design Work File for necessary permits: US Army Corp of Engineers State 248 and Collateral Permits (December 2012) Local authorizations (As needed) 47 47

49 Next Steps: Phase 2 Work with planners from Middlebury, Shoreham, Cornwall, and Middlebury College to identify best route Community meetings Property permission negotiations with Landowners Complete Field Work (Environmental, Survey, Archaeology) Complete System Design Work File for necessary permits (July 2013) 48 48

50 Feedback or Questions? Contact Steve Wark from Vermont Gas at: Office: (802) Contact the Department of Public Service at

51 Construction Construction Techniques 50 50

52 Construction Specific areas and construction methods to be used at each location are determined during the design & permitting phase All designs must be approved before construction can begin and work must be in accordance with the issued permits 51 51

53 Vermont Gas Experience Vermont Gas has worked on projects in environmentally sensitive areas; Most recently, looping projects (Phase 1-5) have occurred in areas that were protected or restored; Contractors have experience with Directional Drilling under rivers and streams Vermont Gas has complied with all permitting requirements Post construction meets or exceeds requirements 52 52

54 Construction in Wetlands Final restoration includes seeding or planting of indigenous plant species appropriate to the specific wetland area 53 53

55 Protection of threatened species Pink flags marked locations a rare species of plant in a wetland on the corridor; snow fence was used to prevent intrusion during construction

56 Pipeline corridor through shallow marsh (Georgia) This section of pipeline crosses about 1400 feet of wetland

57 Existing pipeline through forested wetland 56 56

58 Horizontal Directional Drilling Construction technique with minimal environmental impact Can drill through ground under bodies of water without disturbing flows or bottom Experience with crossing under Lamoille, Missisquoi and Winooski Rivers 57 57