High Court finds state regulators failed to follow rules in VGS pipeline case

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MONTPELIER, Vt. (WCAX) – The Vermont Supreme Court says state regulators didn’t follow their own rules when it comes to enforcing penalties against Vermont Gas during the construction of the Addison County pipeline.

The pipeline, completed in 2017 after millions in cost overruns and controversy, brings Canadian natural gas to thousands of Addison County residents and businesses today. But pipeline opponents for years fought the project in the courts, claiming the company used questionable construction practices, including running sections of the pipeline under power lines and not burying it deep enough.

The Vermont Public Utility Commission in 2021 agreed, saying that Vermont Gas made “substantial changes” which were not approved under the project’s orginal Certificate of Public Good. But aside from issuing some fines, the PUC allowed the company to amend the permit.

In a ruling last week, The Vermont Supreme Court sided with opponents of the project, finding that the PUC failed to conduct the proper public input process.

“The public needs to know and then decide whether this is a public good or not,” said Rachel Smolker, one of the intervenors in the case. She says the ruling is a win for transparency surrounding future energy projects. “The ad hoc nature of how the PUC has dealt with these kinds of concerns in the past sets a precedent where companies are rewarded for ignoring statutes.”

Experts say the ruling means more scrutiny on energy projects going forward. “To quote what the court said, asking for permission instead of forgiveness when changes are being made. I think we are on a track for more permission being asked when changes are made,” said Mark James with the Vermont Law and Graduate School.

It’s unlikely the ruling will result in any changes to pipeline operation. Vermont Gas CEO Neale Lunderville stresses that the pipeline is safe and delivering needed energy to Addison County. “natural gas remains one of the most affordable options for our customers. In the future, we want to keep it affordable but we also want to make it sustainable,” he said.