Vermont Gov. Phil Scott said Wednesday that a settlement among Morrisville Water & Light, state agencies and conservation and recreation groups will keep a hydroelectric dam on the Green River in Hyde Park operating—for now—while Vermont reviews the water-quality requirements that govern dam operations.
Under the terms of the settlement announced at a press conference, Morrisville Water & Light, a nonprofit public utility, agreed to withdraw its request to decommission the facility and instead pursue a new federal license to continue operating the dam, according to state officials.
The settlement, Scott said, shows what can be achieved when parties work to find common ground. He said in remarks delivered at the press conference that the agreement is meant to provide immediate certainty for the dam and the Green River Reservoir State Park while questions remain about the longer-term future.
Scott Johnstone, manager of Morrisville Water & Light, said the agreement provides a “path forward,” adding that it is not “perfect from anyone’s eyes,” but that it offers clarity about “where we go from here.”
A central feature of the settlement is the state’s planned review of water-quality requirements that dictate how the dam operates. Vermont officials said the review will finish by the beginning of 2029, and that its outcome will help shape what happens after the near-term period covered by the settlement.
Vermont Agency of Natural Resources Secretary Julie Moore said the settlement does not foreclose what could come next. She told reporters that the agency is “making no promises about the outcome of that process,” describing the review as a step the state is taking as it evaluates whether and how requirements may change.
Environmental advocates said the settlement is intended to deliver improvements while the licensing and review process moves ahead. Lauren Hierl, executive director of the Vermont Natural Resources Council, said the deal provides “immediate improvements for water quality and fisheries in the Lamoille and Green rivers” and sets “a clear schedule” to help ensure the hydroelectric project will meet Vermont’s water-quality standards.
The dam and reservoir have been at the center of litigation and dispute for years, including conflict over how much the utility is allowed to change the reservoir’s water level. Officials said the hydroelectric project generates power for customers in Lamoille County and also helps maintain the Green River Reservoir, which is used for outdoor recreation.
In 2021, Morrisville Water & Light announced it intended to decommission the dam, saying that operating under the state’s water-quality requirements was too economically burdensome. Officials said the utility had asked the state to consider purchasing the facility, but the state declined.
While the settlement removes decommissioning from the table for now, Vermont officials said decommissioning or other changes remain possible later under the settlement’s terms. Moore said if the state does not recommend changes to the water quality standards, the utility would still be able to pursue decommissioning or transferring ownership.