AUGUSTA, Maine — Gov. Paul LePage said Monday that he wants other energy sources such as natural gas and hydroelectric to enjoy the same expedited permitting process that the wind power industry has seen.
Speaking to members of the Maine Wood Products Association, the governor touched on a number of successes in his first year and also looked forward to the short legislative session that is under way.
But energy was the touchstone of his remarks, some of which echoed his radio address over the weekend during which he criticized a citizens’ initiative that seeks to require at least 20 percent of Maine’s electricity come from new renewable energy sources by 2020.
Last October, the Maine Citizens for Clean Energy coalition kicked off a signature-gathering drive aimed at beefing up the state’s renewable energy portfolio. If successful, Maine voters will decide the issue in November.
Over the weekend and again on Monday, LePage urged Mainers to look closely at the petition and reject it because it actually would increase energy costs while padding the pockets of special interest groups.
“It’s not good,” he said of the renewable energy initiative, “and I’m going to be fighting it all year.”
The audience on Monday largely agreed with the governor on energy, according to John Pietroski, president of the Maine Wood Products Association. Pietroski said energy costs are the biggest barrier for his firm, Wells Wood Turning and Finishing Inc. of Buckfield, and many others like his.
“I’m not sure, because we’re so diverse, but primarily it’s electrical costs. We’re really hurt by that,” he said.
LePage said he shakes his head when thinking about Maine’s energy costs, which are 42 percent higher than the national average, and about how much those high costs contribute to the lagging economy.
While it’s true that Maine is above the national average in electricity rates, the state’s rates are the lowest in New England.
Natural gas is an energy source that has entered the spotlight in a big way in recent months. A proposed pipeline from Richmond to Madison could expand the availability of gas to a region of the state that hasn’t seen that option.
The governor said even though the state can’t help finance a pipeline, it can be more business-friendly to providers. When asked about wind, LePage said he doesn’t have a problem with wind power but, “without a subsidy, wind doesn’t work.”
Finally, he criticized Efficiency Maine, a quasi-state agency whose goals are to reduce energy costs and increase efficiency, for not working closely or effectively with his administration.
He said Efficiency Maine does not report to the governor’s office, something he would like the Legislature to address in the next few weeks.
In his 20-minute speech followed by 10 minutes of questions, LePage touched on other initiatives he has in the works, including his plan to merge the Department of Agriculture and the Department of Conservation.
He said his budget proposal for the Department of Health and Human Services is the biggest hurdle the Legislature faces at the moment, but he reiterated his point that the state’s Medicaid program is unsustainable.
“What we proposed last [session] was largely ignored by both parties,” LePage said, referring to DHHS cuts that originally were part of his 2012-13 biennial budget.
The governor said Maine has become “enormously generous” in doling out welfare — a term he used interchangeably with MaineCare — but said that cannot continue.
LePage touched on his education initiatives, including moving away from a culture that encourages all children to go to college, something he called “unrealistic.” He said the technical and vocational courses have “moved to the back of the room.”
He also said teachers are underpaid and school administrators are overpaid.
LePage also touched on regulation reform, one of the hallmarks of his first six months in office and something Pietroski said has helped his industry.
“He’s worked hard at red tape and getting us through that,” he said.
More than that, though, Pietroski said he’s glad to have a governor who understands the wood products industry like LePage does.
Just another promise he won’t keep. How’s the “create jobs” effort going?
Going Great…. the new Swedish bio-medical manuf. building at the former Navy Base in Brunswick is nearing completion; and there were about fifty cars parked around HANGAR SIX where Kestrel is building planes. More cars were at the data security complex and it appears as if Maine Technology Institute has expanded as well.
You can keep up with the many accomplishments of the LePage administration in economic development starting with feeds from the Governor’s office and to relevant Commissioners.
Perhaps if the oil and gas industries, and others, were non-profit, things would improve.
then we’d be paid as much as prof’s at Colby and Bates and have all that time off and those many benefits…hey, not a bad idea; the life of a UMO faculty member!
Hydro. Cheap, clean, renewable, reliable.
10/4 its a no brainer unless you are a eco-terrorist
yea wasn’t there some really cool underwater tidal windmill looking thing that would constantly made power as the tides come in and out? what happened to those?
Russell correctly notes that Maine has the lowest electricity costs in New England, but fails to note that the cost of electricity in Maine is also lower than in New York and New Jersey. For the actual costs, see:
http://www.dirigoblue.com/2012/01/lepage-fails-to-note-that-maine-has-cheapest-electricity-costs-in-new-england/
Maine is ranked number ten in the country as far as energy cost are concerned. What LePage does not tell us is that Maine has the lowest energy cost in the entire Northeast United States. The other thing he fails to mention is that Maine is the third coldest state in the United States. Maybe it would be a lot better if the Governor of Maine started to spend more time on talking up the benefits of Maine vs. other Northeast US States instead of always being negative and putting our Great State down.
Vermont’s costs, with the new deal with Quebec Hydro are lower than Maine. LePage will have a lot to talk about with the expansion of natural gas lines, fleet conversion to Compressed Natural Gas, and a deal with Hydro Quebec to bring the cost of electricity down to 6 cents/kwH or lower for the next 20 years.
Quebec’s economy boomed all through the recession because of it’s low energy costs, a fact well known throughout Canada and Europe….electricity is so cheap they heat homes with it, and if you want real ‘cold’ I suggest a trip to Quebec Winter Carnival next month to realize how warm Maine is.
You are incorrect on rates. EIA reports that Maine’s average YTD residential rate through 9/2011 was 15.43 cents per kilowatt hour while Vermont’s was 16.17 cents. The hydro contract signed by Vermont was a replacement contract for one that expired and represents less than 8% of the state’s power consumption. The contract contains price escalators pegged to the price of natural gas and other factors.
Vermont faces huge price increases if it does not renew the operating permit for Vermont Yankee Nuclear. FERC reports that the current wholesale rate of power sold by Yankee is less than 4.4 cents per kilowatt hour. So Vermonters would see a minimum increase of 1.5 cents per kilowatt hour at current rates if Canadian hydro were needed to replace the nuclear unit.
If you think Canadian hydro imports are the panacea for lower cost you are being myopic. Ontario has banned all coal fired generation in the province after 2014, or 10% of its current capacity. Several brown outs this past summer in Montreal indicate that the province is not self-sufficent in electricity and this will put pressure on power prices. Over simplification of energy problems results in making poor assumptions and choosing bad solutions. Maine has a 20 year track record to prove it.
Um, not according to the Institute for Energy research we don’t and are the 11th highest in the U.S.; while our neighbor Quebec has the lowest electric rates in N. America:
“Maine’s electricity is among the most expensive in the nation. Over half of the state’s electricity is generated from natural gas, while another quarter of the state’s demand is supplied from hydroelectricity. Maine uses more electricity from burning wood and wood waste than any other state, as these resources provide about 20 percent of the state’s electricity. While Maine does not have fossil fuel resources, it has renewable energy potential. Because of Maine’s substantial use of wood as fuel, Maine has the highest percentage of non-hydroelectric renewable energy use in the country.”
With Rhode Island almost entirely electrified using natural gas–97.7% their rate is the lowest in New England at 14.24 cents/KwH. In other states using Natural gas the rates are almost as low as the power generated from hydro, making LePage’s emphasis right on target.
Per BTU, heating with electricity is 3x more expensive than heating with Natural gas.
Facts don’t lie; and natural gas, next to hydro is Maine’s cleanest and least expensive energy option.
The Honda dealer in Lewiston admitted that they sell a steady stream of CNG powered Honda’s along with garage compressors to fill tanks overnight from residential natural gas supplies.
Actual costs my butt, I’m paying a little over 17 cents a KWH. I only see New York paying more than I do.
The DirigoBlue data is dated over a year. Current EIA data through 9/2011 shows that residential rates in Massachestts and Rhode Island are cheaper than Maine’s at 14.84 cents and 14.78 cents respectively.
There the good that came from shutting down Maine Yankee.
It’s time for LePage to stop commenting and pledging and accusing and assessing and actually do something useful. And by “useful” I don’t mean hopping on the campaign bandwagon years early.
Is there any new business to be discussed, yet ?
the new Swedish bio-medical manuf. building at the former Navy Base in Brunswick is nearing completion; and there were about fifty cars parked around HANGAR SIX where Kestrel is building planes. More cars were at the data security complex and it appears as if Maine Technology Institute has expanded as well.
You can keep up with the many accomplishments of the LePage administration in economic development starting with feeds from the Governor’s office and to relevant Commissioners.
“without a subsidy, wind doesn’t work”…….. it’s renewable, you are getting your money back. Natural gas? He knows that the state, per se, can’t afford the pipelines but we can be more business friendly?
That means he was a whole lot of towns to file for and enter into TIFFS and subsequently development bonds. Which means……subsidizing gas company’s, such as KVGAS, with a property tax rebate program. So in other words, property owners in these towns get a rebate, but KVGAS gets the money. And then when it’s completed and the TIFF expires, property taxes almost always increase because it will now cost more to provide services. You don’t get your money back with these types of subsidy’s, KVGAS has it, and will adjust their rates to compensate for any profit shortfall or costs increase. It’s a win/win situation for KVGAS.
I have no problem with natural gas as an energy source. I do have a problem with a private utility company being subsidized by a property tax rebate to this extent. Keep in mind, a TIFF must be at least 10 million, and it’s obviously more than that. Multiply at least 10 million by each town where lines need to go, and you are talking multi-millions, for one type of energy industry provider.
Seems like he thinks everyone is getting too much welfare, or is paid too high by the state, except daddy’s little girl. Single no kids even want to try living on less than 11k a year? I am in that range. I have terminal cancer and after losing everything I worked my whole life for going bankrupt, getting divorced, moving into a one bedroom section 8 apt, and getting a veterans pension. Which took nearly 5 years of living with $0 income. I got a COLA this year of less than $40 a month. So they cut my food stamps by $100. Net loss of $60 a month. Every year I get a letter from “a Grateful Nation” explaining that I don’t have to pay income taxes on my pension. But according to Paul I am living high on the hog and am overpaid. I am sure it will come as a relief to many conservatives, and republicans and of course Paul, that in a few more months I will be “dropping” off the generous rolls of the government welfare system. EDITED TO SAY: My section 8 still leaves me paying $285.00 a month in rent. 1/3 of my income. Soon to go up by 1# of the COLA.
Stop with the reality, Unbalanced … conservative economics is all theory. ; 0
Sometimes I cheer on the few welfare cheats there are out there. At least someone is getting something. It is a full time job with the paperwork and meetings etc. anyway.
Why not ?
The corporate “persons” scamming the government are the corporatist’s heroes.
See:
Private Sector Gets Job Skills; Public Gets Bill
3 days ago … But customized job training for a specific employer still holds favor with public officials, who often argue it may be an effective use of …January 8, 2012 – By MOTOKO RICH –
http://www.nytimes.com/2012/01/08/business/states-pay-to-train-workers-to-companies-benefit.html?scp=2&sq=job%20training%20&st=cse
Business DayVideo: Private Sector Gets Job Skills; Public Gets Bill2 days ago … Video: Private Sector Gets Job Skills; Public Gets Bill … come to expect that state and local governments will pay for job training, too. …
http://economix.blogs.nytimes.com/2012/01/07/video-private-sector-gets-job-skills-public-gets-bill/?scp=3&sq=job%20training%20&st=cse
I believe that we need to socialize the Hydro Power in Maine. No one owns all that water, we all do! We all deserve a cut of it before taxes and expenses, the same way Alaska does with oil.
The “wood products” folks are no doubt looking for a deal similar to the one New Brunswick cut with the Alward government. JD Irving and Fraser paper got a 4.5 million dollar energy subsidy (to improve the business climate for the paper companies) and it’s being passed on to household rate payers in the form of higher public rates. It should be a bit concerning to Maine citizens that there is no mention of cheaper energy rates for households, only “businesses”.
http://www.evri.com/media/article;jsessionid=chivx3vg0gf8?title=PCs+criticized+for+Irving-friendly+policies&page=http://www.cbc.ca/news/canada/new-brunswick/story/2011/12/20/nb-irving-politics-1119.html?cmp%3Drss&referring_uri=/organization/j.d.-irving-ltd.-0x8bf7c%3Bjsessionid%3Dchivx3vg0gf8&referring_title=Evri
The new law also breaks a contract signed with Enbridge Natural Gas that should be in force until 2020 to give lower gas rates to business, not households.
Be afraid, be very afraid…this guy is not an original thinker!
And Baldacci sucked up all the money to produce research into producing ethanol at the forest products industry labs in Rumford and Orono. And how did that turn out?
You don’t have to be much of an original thinker to realize you can burn natural gas in your cook stove, your hot water heater, your boiler, and even your car and save a considerable amount of money all the way around.
Original thinkers have long left the state with their failed research projects; time for the practical common sense people to take over.
Wood gas generator – Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/Wood_gas_generator
Get busy .
Good day:
I guess you didn’t really read the post because this type of initiative would raise energy costs for organic farmers too…this is a break in favor of businesses and not for homeowners. Natural gas will not come to rural areas (where many organic farmers live) and electricity costs for greenhouses and water pumps will be higher wherever you live.
Politicize if you’d like…my point was, this follows the path of what other governments have already done (ie, Wisconsin, Ohio and New Brunswick) and it would not be anything this guy has thought of on his own….lobbied and prodded–not inventive, original or innovative.
That’s what the post intended to convey…….
BTW, I too am an organic farmer, raise my own vegetables, poultry, eggs and consider myself a locavore. Please don’t shoot the messenger!
Cheers my friend~~
It’ s not that liberals are ignorant, it just that much of what they know isn’t true.
Change “liberals” to “Conservative” and you would be right.
Or how about this one: It’s not that Paul Lepage is a liar, it’s just that much of what he says is not true.
Peace
the person that said wind is renewable you get your $ back..can you explain what you mean by that?
you see there is a rumor going around that is true but actually it depends on where and how ..are you informed on wind in Maine? hills and forests are the worst place for them and known to be highly inefficient even by the people in the industry who are objective about it..not the ones trying to sell a bill of goods with the subsidies LePage mentions…not to mention the ruined scenery, miserable humans near the noise and the dead and driven away birds and animals whose habitats are uprooted by the blasting of the topography..we are not Texas, Iowa or the Dakotas here,,noticed much consistent wind lately? The questions are complex and I do not know if Mr LePage has the answers but I agree with what he says about the subsidies- let these companies exist without the subsidies as Germany is now doing.
I wish Gov LePage would say he is against windsprawl which ruins the mtns and threatens to destroy the livlihoods of Maine Guides and sporting camps, both long Maine traditions. If he supports ocean wind say so. Maybe he wants to keep the Fed money coming into the UofM? At least he needs to replace the windsprawlists on the EUT commission, Fitts, Hinck, and duHoux to help improve the energy situation.
I agree with saying no to ocean wind as the studies on turbine noise (low frequency signal) is just not there. This will flush most of the fish and aquatic creatures far away from the sights as noise is resinated for miles under water. I know I wouldn’t want one of these massive turbines in my back yard.
Electrical generating monorails are our answer nation wide. Know it, feel it, breath the clean air, drink the clean water enjoy the cheap electricity, This is what the monorail will leave us. Walt Disney knew that when he created it. This is what he left us back in the 70’s now lets take it from here.——— Got vision
If efficiency Maine is not working with or sharing the results with the boss then we need to get rid of the organization and quit wasting tax payer money. Every part of every department,division,or entity of Government needs oversight or a check and balance system including the Federal Government. If there is no time to oversee the process and results then the entity is too large for anyone to manage. Disassemble is the answer. Then we can invest the money in a brand new National Monorail System complete with a massive electrical generation system. Generate while you ride, while we are at it we may as well hire most welfare recipients around the country to build the infrastructure Thats why we call it a national monorail system, Team work will build this. How Inventive, Got Vision
Combine the HVDC line from Quebec with a monorail line down the pike and you have both a source of power and a way to move a lot of cars off the road and people faster to their destination.
The Swiss can live in rural villages, yet are quickly linked to the rest of Europe by high speed rail. Maine can retain it’s rural village social structure; yet enable fast access to urban centers and beyond.
Hydro Quebec is bringing on line terabytes of hydro power and our Governor is negotiating for a long term ‘deal’ for cheap power.
If the high voltage transmission line through N.New Hampshire falls through or is stalled longer, Maine might become the new route.
Maine heating oil jumps 11 cents a gallon
The cost of wind remains steady.
http://bangor-launch.newspackstaging.com/2012/01/09/business/maine-heating-oil-jumps-11-cents-a-gallon/?ref=regionstate3
Info on the gross disparity of subsidies for green energy vs. traditional sources.
Renewable Energy Subsidies Are 49 Times Greater Than Those For Fossil Fuel
Posted by Institute for Energy Research (IER) Jun 11th 2011 at 10:04 am in Economy, Energy | The Congressional Research Service (CRS) recently performed two studies evaluating fossil fuel and renewable energy subsidies—one in April and one in May. From those studies, in 2009:Renewable energy subsidies were 49 times greater than fossil fuel subsidies when evaluated on a Btu (British thermal unit) basis of production. In other words, when making a comparison based on the amount of energy produced, renewable subsidies were 49 times greater than fossil fuel subsidies. On a straight amount-of-subsidy basis, renewable fuels received over 6 times more tax revenue dollars than fossil fuels received, as estimated by the Joint Tax Committee. Renewables received a 77 percent share of total federal energy incentives in 2009, while fossil fuels received a 13 percent share but produced more than 7 times the energy. http://bigpeace.com/ier/2011/0…
All Hail King Canute in a Penguin suit!