Work Session
February 24, 2014
Present were: Mayor Grenier, Councilors Otis, Remillard, Benski, Morgan-Allain, Higbee, Rozek, and Theberge; Councilor Nelson was absent
Others present: City Manager James Wheeler, Peter Brown of Preti, Flaherty, Beliveau & Pachios LLP, Police Chief Peter Morency, Community Development Director Pamela Laflamme, Gorham Paper & Tissue CEO Mike Cummings, and Wayne Nablo, Barbara Tetreault, Berlin Daily Sun
Natural Gas Prices and Related Energy Issues
Mr. Grenier introduced Peter Brown who represents New England communities on the issue of natural gas. He said that natural gas prices are lower in NY City than in New England because there is not enough natural gas pipeline capacity to New England. The Marcellus Shale in Pennsylvania and New York, is said to have a conservative estimate of natural gas to supply the US for 110 years. That gas is less than 110 miles from the border of New England; however there is not enough pipeline to capture the value. The basis differential for New England is $28.00 more for gas, due to the lack pipeline capacity.
The New England Governors have expressed their support to ISO NE for buying pipeline capacity through a tariff to be reimbursed through transmission charges. The proposal will save $450 million per year in rate charges and it would have a 2 year pay back with the savings. PNGTS wants to expand without adding pipe; they would do it through compressors.
Mayor Grenier asked what the City could do to help with process and Mr. Brown noted that a City Council resolution supporting the additional 2 billion cubic feet of capacity would be helpful as well as making the resolution available to Senators, Representatives, the Governor, and the State Department of Energy and Planning.
Mayor Grenier reported that the Gorham Paper and Tissue plant is feeling the pressure of high gas prices. The have made a concerted effort to make a long term commitment and the high gas prices are an unexpected circumstance.
Mike Cummings commented that the description is accurate. The mill has had to shut down production because the price of gas is too high. He added that the competition does not have this problem in the winter. Gas prices today were $33.68. The pipeline expansion won’t change anything until 2017 to 2018. The effort for a licensed natural gas (LNG) facility for Groveton would help.
Councilor Theberge stated that Berlin needs to support the initiative. Mr. Cummings said that if we don’t do something soon, there won’t be manufacturing in northern New England. We have to build support for what Mr. Brown is presenting. Mayor Grenier stated that we will do everything possible to hold on to the vitality of traditional manufacturing.
The Council will consider a resolution at their March 3 meeting and Mayor Grenier asked if the rules could be suspended to pass the resolution in one night.
Non-Public Session
Councilor Theberge moved to enter into non-public session per RSA 91-A:3II (a) Personnel and (d) consideration of the acquisition, sale or lease of real or personal property; Councilor Morgan-Allain seconded and the motion carried unanimously by roll call.
Councilor Rozek moved to seal the minutes as releasing them would render the proposed action ineffective; Councilor Theberge seconded and the motion carried unanimously by roll call. The minutes are sealed until a draft EPA report is released
Councilor Higbee moved to come out of non-public session; Councilor Rozek seconded and the motion carried unanimously by roll call.
Councilor Rozek moved to adjourn; Councilor Higbee seconded and the motion carried.
The meeting ended at 8:12 p.m.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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