Semiconductor producer GlobalFoundries submitted a revised proposal Friday to purchase electrical energy for its Essex Junction plant straight from the grid, bringing it in keeping with Vermont’s renewable vitality necessities. However the proposal leaves key questions in regards to the plan’s legality unanswered.
The corporate, which is Vermont’s largest non-public sector employer and consumes extra electrical energy than town of Burlington, proposed final March to separate its energy provide from Inexperienced Mountain Energy, with a purpose to purchase wholesale electrical energy at a less expensive fee. Firm officers say the transfer would considerably cut back prices.
GlobalFoundries had additionally argued it needs to be exempt from Vermont’s renewable vitality customary, which requires electrical utilities to get a share of their energy from renewable sources. However on Feb. 17, the Public Utility Fee dominated it doesn’t have the authorized authority to exempt the corporate from these necessities. GlobalFoundries now proposes to adjust to the renewable vitality requirements.
“We’ll be a self-managed utility, and dedicated to not solely environmental excellence, however persevering with to drive the semiconductor market right here in Vermont,” mentioned Ken McAvey, the final supervisor of GlobalFoundries’ Essex Junction plant, often known as “fab 9.”
Nonetheless, the corporate’s new plan seems to nonetheless be at odds with elements of the PUC’s Feb. 17 order. In that order, commissioners say the corporate’s proposal “would both make GlobalFoundries a public service firm—absolutely topic to all required statutes, such because the Renewable Vitality Commonplace—or an entity that isn’t at present approved underneath Vermont legislation.” Whereas the corporate’s new plan would convey it into compliance with some authorized necessities for electrical utilities, GlobalFoundries continues to hunt to be a “self-managed utility,” an entity that isn’t contemplated underneath state legislation.
“GlobalFoundries may turn into a public service firm, like one other utility if that’s what it needs to do,” mentioned Chase Whiting, a employees lawyer on the Conservation Legislation Basis, which opposes GlobalFoundries’ proposal. “If it does that, it must be absolutely topic to the entire required statutes. It may well’t simply decide and select which of them it needs to comply with and which legal guidelines it needs permission to interrupt.”
Conservation Legislation Basis has requested the PUC to make clear its Feb. 17 order, as has AllEarth Renewables, one other get together to the case. David Mullett, AllEarth’s authorized counsel, mentioned if GlobalFoundries is allowed to turn into a self-managed utility, it may have ripple results.
“You would possibly see ski areas, you would possibly see different entities asking for this sort of factor, and it is very a lot a sea change with unsure penalties,” Mullett mentioned.
In an interview with VPR, McAvey mentioned the corporate has no intention of changing into a public service firm.
“We won’t be within the enterprise of promoting energy, we’re not going to be a public utility firm,” McAvey mentioned.
As a part of its new submitting, GlobalFoundries requested the PUC maintain hearings on the matter this summer season, with a remaining order by Sept. 1.
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