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Rhode Island Power Plants by Carol
Masiello
Misery loves company and in the world of
electric deregulation nothing is truer. Deregulation promised competitive
pricing and lower electric bills for Rhode Islanders but years later many see
those promises as being unfulfilled. A representative for the Energy Project for
the National Conference of State Legislatures observed that electrical
deregulation has been a flop for most of the 25 states that have tried it. When
deregulation began in 1998, all Rhode Island customers had access to the
competitive market but rampant mergers dwindled the choices. Customers could
remain with the Standard Offer Service but those that tried the competitive
market returned disillusioned. (As of 2001, competitive suppliers were serving
only 0.5% of RI customers) In 2002, after years of frustration with the system,
Rhode Island House Speaker John Harwood introduced a bill that would revamp the
state’s competitive electricity market. The bill aimed to change the fact that
99% of the state's electricity customers continue to buy from the default
utility provider (Narragansett Electric) and it would allow Rhode Island
municipalities to set up aggregations to help customers benefit from a large
economy of scale, and (hopefully) purchase power at a lower rate. The price
Rhode Island consumers pay for electricity has risen five times since June of
2000, an increase of 66%.
Power plant proliferation was not as serious
an issue on the Rhode Island side of the border as it was in Massachusetts.
Rhode Islanders have had more battles against the new plants in Massachusetts
than in their home state. Three plants have been proposed for the valley side of
the RI line and only two have been built. Ocean State Power was the first to
come into the valley (1985) and broach a new environmentally friendly type of
power plant, a gas fired combined cycle plant. Burrillville officials were happy
about OSP’s plans to build two plants on 40 acres of land owned by Blackstone
Valley Electric off of Sherman Farm Road. The project would more than double the
town’s tax base, Burriville would get $73 million dollars in taxes over 20
years. Each year's payment equals about 10 percent of the town's budget. In
effect, the payments lower the tax rate by $4 to $5 per thousand dollars of
assessed valuation. Uxbridge and Burriville residents launched a campaign
against the plant, hiring lawyers who questioned the environmental impact of
placing a power plant in a wooded rural neighborhood surrounded by four
conservation areas. Their main concerns were emissions, what type of fuel oil
would be used as a backup and what would happen to all the steam vapor generated
from the four million gallons of water used daily taken from the Blackstone
River. Power companies at the time were not congenial to buyout plans or
concessions, so the battle for a compromise from OSP was a long one. Eventually
OSP agreed to a $400,000 buyout of properties within a half-mile of the plant in
Burriville and Uxbridge, although OSP strongly felt that there were no health
issues and that there would be no loss of property value. Of the 65 properties
eligible for buyout in 1991, Ocean State Power purchased 26. Since then, Ocean
State Power has been able to pick its new neighbors and has resold homes that it
bought. The OSP/ Burriville Community Foundation got $12 million dollars for
civic projects over a span of 20 years along with a scholarship fund of $2.1
million dollars for 20 years. In addition, Ocean State Power has a 20-year
agreement with the Harrisville Fire and Water District totaling $1.46 million.
Over 20 years Ocean State Power's charitable giving will total $2.4 million.
There have been a few problems with the plant over the years. In 1994, a backup
oil storage tank leaked 9,700 gallons from a million-gallon storage tank. In
March 1994, a muriatic (hydrochloric) acid spill caused the formation of a vapor
cloud, which led to the evacuation of about 50 people in nearby homes. During
the drought of 1997, an Uxbridge trucking company was fined for illegally taking
water out of a local Uxbridge reservoir, causing neighboring wells to go dry.
The water was being drained to help meet OSP’s high daily water demand.
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