Settlement Reached to Keep Green River Reservoir Hydro Operating While Advancing Water Quality, Recreation, and Long-Term Certainty
Montpelier/Morrisville, Vt., - Morrisville Water & Light (MWL), the Vermont Agency of Natural Resources (ANR), Vermont Natural Resources Council (VNRC), American Whitewater, and the Vermont Council of Trout Unlimited today announced a comprehensive settlement agreement that resolves MWL’s request to decommission the Green River Reservoir hydroelectric facility at this time and establishes a clear compliance schedule for the Green River, Morrisville, and Cady’s Falls hydroelectric developments as the project moves toward a new Federal Energy Regulatory Commission (FERC) license.
“The settlement provides a responsible path forward for our ratepayers and for Vermonters who value the Green River Reservoir,” said Scott Johnstone, General Manager of Morrisville Water & Light. “It resolves the immediate uncertainty around decommissioning, supports relicensing, and lays out a clear compliance schedule aligned with Vermont’s water quality requirements, without placing an unfair financial burden on MWL’s 4,000 ratepayers for a resource that serves the entire state. Importantly, it also creates time and structure for the state’s review of reservoir drawdown standards, an issue that has been central to the long-term future of the reservoir.”
Under the agreement, MWL will withdraw its request to decommission the Green River Reservoir Development, and the parties will jointly support issuance of a new FERC license consistent with Vermont’s Section 401 Water Quality Certification (WQC). The settlement also sets timelines for achieving in-river flows that are protective of fish and their habitats, limiting timed drawdowns from the reservoir, and scheduling whitewater releases, while committing ANR to complete a public process by January 1, 2029 to examine Vermont’s current rules for protecting shoreline habitats, including whether manmade reservoirs should have different requirements than natural lakes.
“The Green River Reservoir is a beloved resource for Vermonters and visitors alike, attracting paddlers and campers each year,” said Agency of Natural Resources Secretary Julie Moore. “This settlement helps ensure that these recreational opportunities remain available, while also better protecting habitat and water quality both in the Reservoir itself and downstream river reaches. Finding this balance required creative problem-solving and good faith from everyone involved. We're pleased to have reached an agreement that serves both the environment and the community.”
Key elements of the settlement include:
Withdrawal of the decommissioning request: Upon approval of the settlement by FERC, MWL will withdraw its request to decommission the Green River development at this time.
Support for relicensing and the 401 WQC: The parties agree to support issuance of a new FERC license and a 40-year license term consistent with the final 401 WQC for the project.
Interim Flow Management Plan: MWL will finalize and implement an Interim Flow Management Plan approved by ANR no later than July 1, 2026.
Whitewater releases: MWL will submit an Interim Whitewater Release Plan by March 31, 2026, and implement a Whitewater Release Plan approved by ANR by July 1, 2026 (or the date of license issuance, whichever is later), consistent with Vermont Supreme Court direction.
Compliance schedules for facilities: The agreement establishes phased schedules for improvements and compliance at Morrisville and Cady’s Falls (beginning as early as July 1, 2026 or license issuance) and at Green River (beginning July 1, 2029 or 36 months from license issuance, whichever is later).
State-led review of reservoir drawdown standards: ANR will complete a public process by January 1, 2029 examining reservoir drawdown requirements under the Vermont Water Quality Standards. Depending on the outcome, MWL may seek amendments to the 401 WQC and FERC license—or, if standards are not changed, the agreement preserves MWL’s right to request decommissioning and/or convey the dam to another entity.
“This settlement provides a durable framework to protect water quality while ensuring the hydro facility can operate under enforceable timelines,” said Jon Groveman, Policy & Water Program Director at the Vermont Natural Resources Council. “It reflects years of public engagement and legal decisions affirming that hydropower operations must meet strong water quality standards and provide meaningful ecological protections. We’re pleased the parties have reached agreement on a path that centers river health and public accountability.”
“Vermont’s rivers are public trust resources that are protected to maintain heathy waters that provide recreation opportunities and support its outdoor recreation economy,” said Bob Nasdor at American Whitewater. This agreement ensures that the paddlers from throughout the region will be able to enjoy the exciting rapids along the Green River and protect water quality under a new federal hydropower license.
“Healthy rivers support healthy fisheries and Vermont’s outdoor recreation,” said Jared Carpenter with the Vermont Council of Trout Unlimited. “This agreement establishes enforceable steps to improve conservation flows below the dams and ensures viable aquatic habitat will be maintained even while power is being generated. We look forward to continued implementation and oversight to ensure the commitments in this settlement translate into lasting improvements on the Lamoille and Green Rivers.”
The settlement agreement will be filed with FERC, along with an explanatory statement, in the project’s relicensing docket. The agreement remains in effect for the term of the new FERC license and is enforceable to the fullest extent permitted by law.
“We’re delighted that the parties have reached an agreement that ensures that Green River Reservoir will continue to exist while allowing Morrisville Water & Light to keep generating clean, renewable power,” said Sally Laughlin, President of Friends of the Green River Reservoir. “This outcome provides stability for the reservoir and reflects a shared commitment to stewardship and sustainability. Moreover, it provides for the long-term preservation of this crown jewel of Vermont’s State Parks, a valuable and unique place for recreation and renewal. Congratulations to all involved from all of us who treasure this place.”