Town of Canton

Hydroelectric Project

January 27, 2016

Current Conditions

Upper Powerhouse

How Does Hydro Work?

Typical Hydro Facility

History Collins Company

1837 - Collins Company built a timber dam near
site of upper dam to provide hydro mechanical
power to the factory.
1867- Present upper dam constructed of stone
masonry to replace timber dam.
1935 - Upper powerhouse constructed.
1965 - Collins Company closes and eventually the
dam and hydro related facilities are given to the
State of Connecticut.

History Post Collins Company

1986 MDC receives license from FERC (Federal Energy
Regulatory Commission) to construct and operate 1,500
kw facility at upper and lower dams.
1988 MDC surrenders license stating project is not
economically feasible
1989 Summit Hydropower files application with FERC
to operate both upper and lower dams
2001 FERC issues Summit final license
2007 FERC terminates Summits license due to
inactivity

Town of Canton
1979 Funded a feasibility study
2008 Town applies for preliminary license to secure
rights for development and priority for filing for a
permanent license.
2009 FERC issues preliminary permit to the Town of
Canton for the Upper and Lower dams.
2009 - Board of Selectmen appoint Hydro Project
Advisory Committee which then becomes the Energy
Committee.

Issues
Hydro facilities are owned by the State of
Connecticut
Cost, time and expertise of applying for a
permanent FERC License
Profitability

State Legislation
The Town of Canton sought State legislation that would
authorize the Department of Energy and Environmental
Protection to allow the Town to use the hydro facilities.
Public Act 09-7 states the Commissioner of DEEP shall
enter into an agreement allowing the Towns of Canton,
Burlington or Avon to utilize the hydro facilities on the
Farmington River.

Federal Legislation

Town of Canton sought Congressional legislation to transfer the

prior existing FERC license directly to the Town in lieu of having to
go through a lengthy permitting process.

Representative Murphy got the House of Representatives to pass the

Collinsville Renewable Energy Act in 2010 and 2012 only to have it
stall in the Senate.

In 2014, the bill was introduced by Representative Esty in the House

and then Senator Murphy assisted in getting it passed in the Senate.

On June 22, 2014, a reconciled bill passed the house by a vote of

379-3.

President Obama signed the bill on June 30, 2014.

Legislation directs FERC to reinstate license pending a comment

period and environmental study.

Profitability Virtual Net Metering

Virtual Net Metering In 2011, the state legislature passed a bill that
provided for virtual net metering.

Net metering states that electric suppliers must give a credit to

customers who install renewable generating systems and generates
more energy than the customer can use.

Virtual Net Metering PA 11-80 allows municipalities to go one step

further and generate clean renewable energy for themselves in
multiple locations and receive a credit for the energy produced.
Allows municipalities the flexibility to produce power in an optimal
location and assign the credits to specific locations (Schools, Town
Halls, etc.)

Profitability Zero Emission

Renewable Energy Credit (ZREC)
Connecticut passed the Energy Act (Public Act No. 11-80)
into law in July 2011, which established the Zero Emissions
Renewable Energy Credit Program. This Program requires
the two public utilities, Connecticut Light & Power
(CL&P) and United Illuminating (UI), to purchase
ZRECs from the owners of renewable energy systems in
Connecticut. The utilities are required to pay a fixed ZREC
price to system owners for 15 years.

Profitability
VALUE OF ELECTRICITY AT WHOLESALE RATE
Current wholesale energy value (est.) $0.046 kwh
4,361,139 kwh x $0.046 = $200,612
VALUE OF ELECTRICITY WITH VNM AND ZRECS
Virtual Net Metering Rate 0.117 $/kwh
Renewable Energy Credit 0.045
Total value of both VNM and ZREC is 0.162 $/kwh
4,361,139 kwh x 0.162 $/kwh = $706,504

Expertise
Private /Public Partnership
In May 2015, the Town publicized a Request for Project Development Proposals.
The Town was looking for a private company to partner with the Town in licensing,
constructing and operating a hydro-electric facilities on the Farmington River.
There were three (3) responses.

Natel Energy
2175 Monarch Street
Alameda, CA 94501

Maier, Moehrle and Scully Group

P.O. Box 338
North Bennington, VT

Pioneer Valley Renewables, LLC

39 Pokeberry Ridge
Amherst, MA

Maier, Moehrle and Scully Group

Principals

William Scully is a principal in the company and is operating a

small hydro facility in Vermont and is in the process of constructing
others.
Armin Moehrle has degrees in Systems Planning and Design and a
degree in Urban Planning.
Claus Maier is a Structural Engineer.
After being selected they formed

CANTON HYDRO, LLC.

What's occurred over the past

three months
Reviewed Draft Agreements
o State Lease
o Comprehensive Development Agreement
o Power Purchase Agreement
Structural Review and Equipment Selection
FERC Regulatory Requirements

Structural Review and Equipment

Selection
One Kaplan turbine with a 785 kw capacity
Capacity Factor is 63.42%
Annual Capacity is 785 x 24 hours x 365 days x .6342
= 4,361,139 kwh
4,361,139 kwh / 8,760 kwh (av. Ct. home) = 498 homes
2 foot 11 inch Flash Boards
Would include both pine boards and a bladder type
system
Fish Passage Facilities
Denil Ladder located on the northeastern (Axe Factory)
side of the dam

New Site Improvements

FERC Process
January 8, 2009 FERC issues a three year preliminary
permit to Canton
July 6, 2012 FERC Issues a successive preliminary permit
to Canton
June 30, 2014 Collinsville Renewable Energy Production
Act passes authorizing FERC to transfer prior license
May 2015 Canton files for a two year extension of the
successive preliminary permit.
June 2015 Canton files for transfer of license pursuant to
Federal Act
FERC denies two year extension but allows application
for transfer of license no need for successive license if
transfer is being pursued.

Non-Capacity Amendment
On December 30, 2015 the Town filed a Non-Capacity letter
Amendment to the License Reinstatement application
which outlines the specifics of the new proposal including
new turbine and generating equipment, flashboards, fish
passage and dam flows.

Next Steps
Complete Agreements
CDA
PPA
State Lease
Increase Cap on Virtual Net Metering and apply for
VNM credits and ZRECs.
Complete Filings with FERC and begin Comment Period
Complete any necessary additional studies

Virtual Net Metering Cap

Total Amount of VNM credits are capped at $10 million, of
which Eversources share is $8 million.
Out of the $8 million, no more than 40% or $3.2 million can
be used for municipal projects.

14 towns that have viable projects (all solar) that cannot

move forward without legislative action to raise the cap.

Senator Kevin Witkos has stated that he will offer

legislation that will double the cap for municipalities.
Considering the additional benefits created by the fish
ladder, a set aside for hydro should be considered.

Benefits
Source of Clean Renewable Energy.
Fish ladder will allow fish to by-pass the dam.
Flashboards will increase the water level in the upper
impoundment area enhancing recreation possibilities.
Possible financial benefits to the Town.
Take active control and responsibility of facilities that are
currently underutilized.