How five-year rail plan will impact Connecticut's economy

Abigail Brone

In addition to enhanced safety measures and sustainability efforts, the state Department of Transportation envisions its five-year rail plan will increase economic growth and jobs along Connecticut's train corridors.

While composition of the state rail plan for 2022-26 is in the final stages, work toward achieving some of the smaller goals are already happening, Department of Transportation Senior Advisor Carlo Leone said.

The state rail plan ensures Connecticut complies with the federal Passenger Rail Investment and Improvement Act of 2008, according to a DOT statement. Work on the new plan began in 2021 and several public hearings were held in the past year.

The main goals outlined in the plan are divided into five categories: Enhancing safety, maintaining the rails good systems, increasing mobility, benefiting state and local economies and improving sustainability.

Despite the federally required plan only extending through the next four years, the DOT established general 20-year goals with the hope Connecticut’s rail system, “is safe, connects communities, generates sustainable economic growth, helps build energy independence and provides links to travel corridors and markets within and beyond the region."

State officials previously touted ambitions outlined in the plan, including decreasing travel time to New York by 25 minutes and potentially connecting Connecticut riders with New York's Penn Station.

Highlighting missed opportunities in economic growth, the DOT also vowed in the plan to leverage the rail system “to support economic competitiveness."

A 2021 statewide Rail Improvements Economic Impact Study conducted by the Capitol Region Council of Governments and the Pioneer Valley Planning Commission, found that there has been a disinvestment in rail connectivity over the last 30 years, according to the plan.

The disinvestment began in the 1980s and has resulted in a loss of "20,000 to 40,000 jobs in information technology, finance and professional services from Metro Hartford-Springfield because of the region's lack of regional and intercity rail connectivity," the plan stated.

“The report further noted that in similar northeastern areas where rail was well supported, the availability of such jobs had fueled regional economic growth, and that employees in these fields were particularly attracted to rail transit availability,” the plan read. “Finally, the study further revealed that investment in regional rail between Massachusetts and Connecticut could lead to a 10:1 return on investment over a 30-year period.”

Freight, an often overlooked aspect of the state’s rail system, will also see improvements over the next five years, according to the plan.

Additionally, DOT plans to invest in infrastructure improvements that will allow freight trains to increase service.

“CTDOT plans to work with its freight and municipal partners to invest in rail and rail-adjacent improvements, including infrastructure improvements that support current and future freight best-practices and provide enhanced and more efficient freight service; intermodal operations improvements; and transit-oriented development that will encourage sustainable land use,” the plan read.

Connecticut’s rail freight industry is operated by the private sector as a for-profit and public benefit service. Connecticut owns five freight rail routes used by nine freight operators over 577 miles, according to the plan.

More than 43 million people and 2.9 million tons of freight move by rail within and through Connecticut each year, according to DOT and the Association of American Railroads.

Freight lines will also be a factor as Connecticut aims to increase the state’s sustainability, since freight trains are three to four times more fuel-efficient than trucks, according to the DOT. Passenger rails also have a higher fuel efficiency than trucks.

Due to fuel efficiency, moving freight by rail lowers GHG emissions by 75 percent compared to trucking, according to the plan. Part of the state’s plan includes continuing to encourage a shift from vehicles to train travel.

On average, passenger rail can achieve fuel efficiencies averaging 51.6 passenger miles per gallon. That compares to vehicles that average 36 passenger miles per gallon, according to the DOT.

The state is also seeking to electrify all commuter rail lines in Connecticut as part of its environmental initiatives.

Expanding access means electrifying the train cars, making all stops handicap accessible, shortening the travel time from Connecticut to New York City and adding a way to travel to Bradley International Airport without needing a vehicle.

To implement the plan’s initiatives, nearly $13 billion will be invested into the state’s rail system over the next five years.

Of the $12.7 billion, $8.7 billion is for the New Haven line; $12.5 million for the Danbury line; $120 million for Waterbury and $921 million for Hartford, and “many more millions of dollars along the corridor,” Leone said.

As Avangrid Moves to Renegotiate Wind Energy Prices, Eversource Sticks With Bids, Looks to Sell Wind Projects

Brendan Crowley

Amid news that Avangrid is looking to renegotiate for higher prices on its offshore wind contracts with Connecticut and Massachusetts, Eversource insists it won’t be making the same requests for the projects it’s developing with Danish energy giant Ørsted.

Avangrid announced in September that it would ask Connecticut to pay a higher price to buy power from the planned 804 megawatt Park City Wind project, and for Massachusetts to pay more for the 1,200 MW Commonwealth Wind project.

Senior Vice President for Offshore Projects Sy Oytan said at the time that Avangrid needed to sell the power from those two projects at higher prices than it originally agreed to because the cost to build those projects has escalated with inflation, escalating commodity prices, and supply chain shortages. 

Avangrid CEO Azagra Blazquez said in the company’s earnings call in October that the company was not looking to “make more money” from those contracts, but that it needs higher prices “basically not to lose money.”

But Eversource CEO Joe Nolan said in a quarterly earnings call with investors last Thursday that Avangrid offered much lower prices to secure contracts to sell offshore wind power to Connecticut and Massachusetts, so Eversource and Ørsted won’t need to ask for a higher price now.

“[Commonwealth Wind] came in here and did very, very low pricing against projects that we had bid,” Nolan said. “I do not feel the likelihood of success for any renegotiation.”

Connecticut agreed in 2019 to buy electricity from Park City at $79.83 per megawatt-hour. It agreed to buy 200 MW of electricity from Eversource and Ørsted’s 704 MW Revolution Wind project at $99.50/MWh, and another 104 MW from that project at $98.43/MWh.

Avangrid’s request for renegotiation in Massachusetts has faced opposition from the three major electric utilities that will be required to buy power from Commonwealth Wind through the state’s contract with Avangrid – which said they had no intention to renegotiate the contracts, according to Commonwealth Magazine.

Avangrid has not made a formal request to renegotiate its contract with Connecticut yet, but a spokesman said they expect their case will be convincing.

“AVANGRID is assessing the economics of the Park City Wind project, and expects to present its case to state officials and the Electric Distribution Companies soon that demonstrates the project will continue to deliver savings to ratepayers while ensuring the project can move forward and deliver significant economic and environmental benefits to Connecticut,” Avangrid offshore wind spokesman Crag Gilvarg said.

Eversource announced in May that it plans to sell its stake in its offshore wind partnership with Ørsted, turning its focus away from developing offshore wind projects and towards integrating wind into the grid onshore.

Nolan said last week that they have talked with “several highly-interested” potential buyers, and may sell its planned projects and its open offshore wind lease areas to separate buyers. Nolan said rising interest rates haven’t caused any concern for their potential buyers, and the company may have more news before the end of the year.

“We remain very big fans of offshore wind, and expect it to become a critical energy resource for the Northeast – particularly in the winter when wind speeds are higher and more consistent,” Nolan said.

Nolan said Eversource wants to focus on upgrades to the electric transmission system to “tap in” to renewable resources that can’t yet connect to the grid. Connecting to those renewables “will only reduce customers’ costs,” he said.

“You have to make the investments [in distribution] to get the savings,” he said.

Norwich school construction referendum passes

Claire Bessette

Norwich ― Voters overwhelmingly approved a referendum for a $385 million overhaul of city schools, with four new elementary schools and a major renovation to one middle school.

Not including absentee ballots, the measure passed handily in all six voting precincts, with 4,820 in favor and 3,253 voting against the plan.

The project calls for consolidating the current seven elementary schools into four new schools that would be built on the grounds of the John B. Stanton, Moriarty Environmental Sciences and Uncas schools and the former site of the Greeneville School. The Teachers Memorial Global Studies Magnet Middle School either would be substantially renovated or replaced. The Samuel Huntington School would be renovated and converted into the adult education center and administrative offices.

Although the bond question asked for $385 million, the city’s total costs would range from $97 million to $153 million, depending on state reimbursement levels.

Without the new schools construction bond, the city would face an estimated $225 million with no state reimbursement just to repair and maintain the current city schools, which date from 1925 to 1975.

Supporters engaged in a late “vote yes for our children” push over the past three weeks, with members of the Norwich NAACP branch and the branch’s youth council circulating fliers and cards and standing outside polling places on Tuesday. The local Trades Council labor union mailed postcards to residents with the same message.

Mark Bettencourt, chairman of the School Building Committee, thanked supporters who led the campaign push and thanked voters for supporting the project.

“I’m very impressed, very happy,” Bettencourt said. “I certainly want to thank everyone who helped get this passed.”

Lyme and Old Lyme residents approve $57 million schools’ project

Carrie Czerwinski, Special to The Day

Old Lyme — A referendum to approve $57.5 million in bonding for renovations and updates to four schools in the Lyme-Old Lyme School District succeeded Tuesday with 3001 votes in favor and 2200 opposed.

Superintendent of Schools Ian Neviaser said, “We greatly appreciate the ongoing support of our communities in an effort to maintain high quality schools. We will now begin the process of putting together a building committee and bid for architectural firms to move forward on this project.”

The referendum asked residents to approve or reject a request for $57,550,000 in bonds, with a state reimbursement of $9,775,000, to renovate and update four schools in the consolidated school district, at a net cost of $47,775,000.

According to the Region 18 website, current enrollment in the consolidated school district is 1300 students, and projections show that by 2031, the number will increase almost 30% to 1673, requiring more space to accommodate the growing population of students.

The referendum proposed updating heating, air conditioning and ventilation systems at Mile Creek School, Lyme School, Lyme-Old Lyme Middle School and Center School, all renovated between 18 and 20 years ago.

Additionally, the funds will pay for fire suppression enhancements at Lyme School and Mile Creek School, for security enhancements at three of the four schools, and nine new classrooms at Mile Creek School, which was last renovated in 2002.

Estimates prepared by the Old Lyme Finance Department and the Lyme Board of Finance, showed a potential tax increase for property owners over the next 25 years, if the referendum had passed, of $112.43 per year increase in Old Lyme for every $70,000 of assessed value and $87.71 per year per $70,000 in assessed in Lyme.

Ian Neviaser, superintendent of schools for the consolidated school district, said in October the $57.5 million figure was a “not to exceed” figure, and final costs could be less, but would not be more than that amount.

Construction on the project would begin in the fall of 2023, with Center School and Lyme School completed in mid-2024, Lyme-Old Lyme Middle School completed in mid-2025, and Mile Creek School tentatively completed in August 2025.