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Rep. James describes one‑year extension and milestones for Rygate biomass plant PPA
Summary
Representative Kathleen James briefed the committee on language that would extend the Rygate wood‑burning power plant's power‑purchase agreement if the plant meets efficiency and reporting milestones; committee testimony noted the plant's new ownership, equipment and market disruptions, and a committee recommendation for a one‑year extension.
Representative Kathleen James summarized committee testimony on statutory language tied to the Rygate biomass power plant and its power‑purchase agreement (PPA).
"For folks who don't know, Rygate is a wood burning biomass power plant that's up in Caledonia County," James said. She told the committee that the plant supplies "about 3 percent of our state's total electricity consumption" and is an "important part of our forest economy" because it buys low‑grade forest products that otherwise have few markets.
James described a 2022 legislative extension of the plant's PPA that included efficiency milestones. Under the bill language discussed, utilities are required to purchase the plant's pro rata share of power only if Rygate meets a series of engineering and schedule milestones intended to increase plant efficiency by 50% relative to 2022 levels.
She explained the recent change in ownership and how that affected the upgrade plan: "As of ... very recently, Rygate is under new ownership. The lender ... has stepped in and bought Rygate outright. ... The plan they have in place to make Rygate 50 percent more efficient is off the table now." The new owner has alternative equipment and a revised schedule and has asked for additional time to complete upgrades.
Key milestones described in the bill include a signed equipment and contractor contract by October (year in bill text), construction plans by October 2026, an on‑site inspection by the Public Utility Commission (PUC) by October 2027, and annual reporting thereafter. James said the statute is written so failure to meet milestones would cancel the PPA and relieve utilities of the PPA purchase obligation.
James said the committee approved a one‑year extension: "My committee did a ... 9‑0 to approve this 1 year extension for Rygate." Other legislators and industry witnesses testified in support, offering potential alternate uses for dried chips, pellet production, and secondary wood products as part of plans to improve the plant's market and efficiency.
No final action on the bill was taken in this hearing; the committee discussed the milestone schedule and the potential financial and forestry impacts of continuing the PPA if milestones are not met.
