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October 12, 2009

National Grid: AIM Criticism Off Base

Dear Editor,

As an AIM member, National Grid is discouraged with both the tenor and the arguments laid out in the opinion piece by Mr. Brian Gilmore, AIM director of Public Affairs (“Ratepayers Burdened By Green Jobs Focus,” WBJ, Sept. 28). National Grid believes that now is the opportune time for Massachusetts to take the lead on an energy policy that provides environmental benefits, job creation and a reduction in the dependence on fossil fuels.

One of the key components of that energy policy is an expansion in energy efficiency programs that will reduce energy consumption, thereby lowering energy demand and result in a lowering of wholesale energy prices.

A recent study offered by Environment Northeast suggests that if Massachusetts were to invest $475 million over 15 years ($7.6 billion) in energy efficiency, it would increase economic activity by $83 billion as consumers spend their energy bill savings in the wider economy. This type of expansion was a key component of the recently enacted Green Communities Act that was supported by AIM and National Grid.

Future Opportunities

A balanced approach to renewables is much needed for similar reasons. While the details of regulations dealing with renewables and specifically, solar renewable energy credits are worked out, it is important that stakeholders such as National Grid and other AIM members work towards reducing our dependence on fossil fuels.

That is another reason why National Grid has filed, in response to the Green Communities Act, a decoupling proposal that allows for continued investment in our electric infrastructure to improve reliability to support expanded economic development, while not being forced to push the sale of more kilowatt hours to support these investments.

We believe other new technologies called for in the Green Communities Act, such as our Smart Grid Pilot for Worcester, offer significant progress in both developing the electric grid of the future and providing real insight as to how customers can better manage their electricity usage and reduce their monthly bills. These initiatives are not experimental or irrational as suggested by critics of a newer, more balanced energy state policy.

This fall, Congress will most likely take up the debate around a federal energy policy that rewards investment in energy efficiency and promotes the development of new renewables.

Fortunately, Massachusetts is already making efforts to lead in energy policy that promotes new technologies, produces environmental benefits and improves our electric infrastructure. It is unfortunate that a vocal minority in the state remains focused on the failed policies of the past while neglecting to embrace a model that moves Massachusetts forward.

Tom King
President
National Grid

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