PORTLAND, Maine — The Maine Public Utilities Commission staff recommends that the state’s largest electric utilities seek more favorable agreements with the New England power grid. But the recommendation stops short of immediate steps to pull out of the grid.
The commission already concluded that Maine ratepayers don’t get enough in return for participating in ISO New England. Alternatives include going it alone, partnering with neighboring New Brunswick or following the staff recommendation of seeking reforms from ISO New England.
The full Public Utilities Commission is due to take up the staff recommendation next week and will report its recommendations to the Maine Legislature by Jan. 15.
Neither Central Maine Power and Bangor Hydro-Electric Co. advocate leaving the grid. Their current agreements with ISO New England will expire in February 2010.
Maine regulators contend the state’s residents shoulder an unfair burden of the expense of regional power grid improvements. They also contend that Maine consumers are left out of the decision-making process, which is increasingly happening at the regional and federal level.
Public Advocate Richard Davies said ISO New England’s mandate is ensuring the reliability of the regional power grid, but the organization isn’t required to consider costs.
“They tend to gold-plate transmission projects. It means they achieve a greater reliability than what’s necessary to provide sufficient reliability,” Davies said.
Furthermore, the way the system is set up, utilities tend to favor electric transmission projects instead of other alternatives for addressing electricity supply problems because of the reimbursements from ISO New England, Davies said.
Ellen Foley, an ISO New England spokeswoman, said stakeholder discussions are already under way to address concerns surrounding cost allocations and cost controls. Additional discussions will kick off this month to address the issue of governance, she said.
“We respect Maine’s need to evaluate and decide its future options, but ISO believes there’s a logical and beneficial relationship that exists between Maine and the rest of the New England states,” Foley said Friday from her office in Holyoke, Mass.
In his recommendation, Charles Cohen, a hearing examiner for Maine’s PUC, suggests that Central Maine Power and Bangor Hydro-Electric Co. negotiate with ISO New England in the coming months to make changes to their transmission-owner agreements with the power consortium.
Cohen recommends that the CMP and Bangor Hydro report back on March 31 and June 15. That would give the Maine Public Utilities Commission and the Legislature time to act before a deadline for notifying ISO New England if it plans to leave the grid.
ISO New England requires utilities to provide a notice of intentions 180 days before the current transmission-owner agreements expire on Feb. 1, 2010.
Maine’s exploration of alternatives to the existing power grid comes as CMP and Bangor Hydro are planning nearly $2 billion worth of electric infrastructure improvements to ensure reliability as well as to connect northern Maine to the regional grid for the first time.
The projects would accommodate existing and proposed northern Maine wind-power projects, but they would face funding obstacles without ISO New England’s assistance.
On 1/3/09 at 10:21 AM,
SteveThurston wrote:
Repeated separate thumbs down will cause comment to be hidden
Joining the New Brunswick grid, as Dr. Nissenbaum suggested in an opinion piece in August 2008, would enable Maine to get power from Hydro Quebec, eliminating the need for 2 billion in transmission lines, and the multitude of wind turbine projects that will deface Maine's rural landscape for no good purpose.
http://bangornews.com/detail/76.html
On 1/3/09 at 10:53 AM,
RussHermon wrote:
Repeated separate thumbs down will cause comment to be hidden
Its time once and for all to walk away from ISO. This is a cash cow for everyone, EXCEPT rate payers. When CMP and Bangor Hydro are both in favor of satying right where they are...one must ask why? This is big buisness, and they stand to loose millions. We have the resources to provide all the power needs for Maine. Produce it in Maine and Keep it in Maine.
On 1/3/09 at 11:35 AM,
meadowlands wrote:
Repeated separate thumbs down will cause comment to be hidden
Although there is no strong argument for keeping a glut of excess power here in Maine, there is also no excuse for Maine not to get a benefit from our raw product(s); in this case, electricity. Other states, i.e. Washington State, enjoy reduced rates for Washington State electric rate payers. What is uniquely different with Maine that we rate payers cannot enjoy the benefit? Free trade exists. Is electric transmission excluded from this deal? If not, we should consider teaming up with New Brunswick and also to potentially get some benefit from Hydro Quebec. It would be an interesting partnership, wouldn't it: Hydro Quebec, New Brunswick Grid and Maine? In addition, cheaper electric and power rates would indeed have the additional desired result of attracting businesses to relocate, especiially to Downeast and Nortthern Maine for sorely needed jobs.
On 1/3/09 at 1:09 PM,
Lorilee wrote:
Repeated separate thumbs down will cause comment to be hidden
It would be nice if we would get a rate cut/break from this being in our state. "free trade" is a joke. Check out the lumber industry! Also, Mainers can go to Canada and shop for a lot more than Canadians can come and buy here (without paying duty, taxes, etc.). Free trade is certainly not equal trade! Maine needs to start taking care of their own. We should follow the example of Washington!
On 1/3/09 at 1:20 PM,
meadowlands wrote:
Repeated separate thumbs down will cause comment to be hidden
Indeed Lorilee FREE TRADE is a joke to us. We need to prosper from our own bounty and create END PRODUCTS here, not mostly ship out raw goods for someone else to make the greater profit. WE NEED BUSINESS ,particualarly here DOWNEAST and Northern Maine. We have the electricty. We need to develop business, attract businesses and to prosper. NOT BE USED
On 1/3/09 at 1:27 PM,
wrote:
Repeated separate thumbs down will cause comment to be hidden
meadowlands...Good question. In the Maine.gov/doc....wind power task force....The governor's own people say that electricty going down the lines more than 20 miles in length can have significant power loss. You will not see anywhere in the push for wind power that the wind farms output was scheduled for Mass. in the summer and Canada in the winter. I have documentation proving this was the plan from the beginning. Why the secrecy ? First Wind built their first wind farm in ME in Mars Hill. After it was up and running...they would not admit the power went to Canada. The town thought for some reason, the power was for Mars Hill. There is always a lot of confusion when the truth is not a high priority. If Mainers knew that Central Maine Electric and Maine Public Gas is now owned by Iberdrola out of Spain they would be outraged. Iberdrola is funded by Abu Dhabi Energy . They pay outright with oil at times. I don't understand why. Falling dollar? Have so much oil , why not use it? Deregulation is a euphemism for no laws for the big dogs. There is money to be made in utilities. They can pay state federal and local lobbyists to push legislation that puts money in their pockets. As a poor person , I can assure you nobody is lobbying for us. The Maine Attorney General's office has told me repeatedly it is not their concern. When I asked one time just what was their concern. They said they would send out a detective. They never did. Probably had a good laugh over it.
On 1/3/09 at 1:40 PM,
wrote:
Repeated separate thumbs down will cause comment to be hidden
And that 2 billion dollar transmission line infratructure was 400 million not long ago. It went up a few million in as many weeks. Seems like the huge cash cow is toast. Greed will be their down fall. There is no place now for the energy from wind farms but to go to Canada. If it goes in the New England grid all the states will help pay for it. If it goes to Canada, I am told the transmission lines are in place. Seems as if ME state govt. has boxed themselves in to an unworkable plan. It would be a good time to come clean and just know when to fold 'em. If the economy had not taken a down turn , Mainers would be paying for this boondoggle .....out of state fat cats to get rich . First in taxes to pay their debts and second in increased utility bills. Another problem First Wind is being investigated for bribery of public officals in NY. HMMMM
On 1/3/09 at 3:08 PM,
RubyRose wrote:
Repeated separate thumbs down will cause comment to be hidden
I think Maine should be looking out for its own! We can't afford to spend 2 billion for new transmission lines that we don't need, just so more wind Industrial sites can be built, to ship power away from Maine. These wind mills are a joke! Why are the stetson wind mills not running? we heard they started up on the 8th, 9th and 10th , just a few of them. No one has seen them turning since. Wonder what is wrong with them? Lets just go put a bunch more up all over Maine, and transmission lines too. Wonder what our light bills will look like then. I am so fed up with all this, Isn't the Govorner and our legislature supposed to be looking out for the people of Maine FIRST? Or is it FIRST WIND they are looking out for. Where will 2 billion dollars come from at this point? Oh maybe a few Mcdonalds workers can flip a few extra burgers to pay for it, cause the rest of the big businesses are leaving the state. Maine does not need ISO , lets for once take care of our own! If Mass. needs power let them make there own .Wind towers don't look any better in the Maine landscape, then they do in Mass!
On 1/3/09 at 11:11 PM,
wrote:
Repeated separate thumbs down will cause comment to be hidden
Mars Hill power bills went up 40% after they got their wind farm. One resident recieved $100.00 off her property taxes the first year. Then they were the same. Mars Hill is saying every other person gets a discount in their property taxes. If their books were audited I'll bet there would be some missing money.
Post a comment about this story
You must be logged in to post a comment.
click here to log in.
