I am very concerned about the comments made recently by a LePage administration official regarding specific aspects of the Maine Energy Office’s review of a proposed offshore wind energy farm. These comments from Ken Fletcher, included in “ LePage’s Energy Czar Questions Wind Plan,” (BDN, 9/17) show a lack of full insight into the issues, consequences and risks involved in this decision and its impact as we move forward in addressing our ever-expanding energy needs.

In the article, Fletcher expressed concern about the impact Statoil’s potential project would have on the cost to utility company ratepayers, the wind energy company’s commitment to Maine beyond the life of the pilot project and the low number of jobs the project would likely create.

Fletcher is directly quoted, saying, “We need to see that we’re going to get a reasonable return on the investment.” It is of great concern to me to see a government agent, entrusted by the citizens of Maine to oversee the energy policies that affect not only current but also future generations, express such a short-sighted opinion on such a timely critical issue.

Let’s start first with the economic analysis of wind power.

In the article, Fletcher states his opinion that any current analysis weighing the financial costs and revenues for such an offshore wind project will result in undue high costs to the ratepayers of Maine, particularly as compared to current energy sources. Thus, for the foreseeable future such a project must surely remain relatively in the “red” and for this reason should be considered economically very risky. Yet nowhere in his calculations do I see any considerations made for those specific costs related to the less direct, but no less real, “externalities” expenses incurred in the production, distribution and utilization of electric power as generated from fossil fuels.

The term “externalities” refers to long-term costs related to the utilization of specific goods and services. Such costs often times are less immediate and so have not been weighed in calculating traditional cost-benefit ratios. Yet, no less due, such additional costs are as equally the requisite result of specific economic strategies and will always eventually need to be paid by someone.

These collateral costs in the case of power generated by fossil fuels include: the clean-up of polluted air, water and soil; the maintenance of infrastructure, such as roads and harbors and rail lines used in the transportation of fossil fuel resources; health care costs related to the various diseases associated with the use of fossil fuels and the pollutants generated; costs incurred in dealing with the growing effects of global warming. These costs are real. These costs are a direct result of our current dependence upon fossil fuels. As a citizen concerned for the health of life on this planet, both now and in the future, I need to see an accurate, full accounting that includes these externalities in any true financial analysis comparing wind-generated power versus fossil fuels.

In a similar vein, no one speaks of an additional germane consideration: those costs in wealth and quality of life to be borne by future generations in what we can now know will be their inevitable need for cleanup and repair of our current neglects if we continue to fail to change our current embedded reliance on fossil fuels. Let no one be mistaken on this crucial point: While none of us now will be here to have to face it, our children’s children’s children and those to follow will all be left with a huge bill just to return the environment, and thus their opportunity to enjoy it, to what we know take for granted.

If, as in Fletcher’s assessment, we must now run in the “red,” as far as ratepayers’ costs are concerned, to begin this long-term process of preserving and returning the Earth to what we would expect it to be if we were alive in the future, let us now begin to take some of the responsibility. Haven’t we already extracted more than our fair share of benefits at their expense? And what’s more, given the considerations of those costs of externalities discussed above, certainly over time we will see a progressively lesser shade of red in the pursuit of these alternative sources of energies.

As one suggestion to meet these additional expenses, why couldn’t those who more greatly benefit from our current energies, i.e., the more affluent among us, share a proportionately greater burden of these costs. The price for the use of energy could, and probably should, be scaled so a certain basic level of usage would be billed at one lower rate, with progressively greater usage above that level billed at an increasingly higher rate, something along the same lines as the current progressive income tax system is suppose to be.

All of us should recognize the need to begin this inevitable process of energy conversion, as we will certainly be rightly so judged and held responsible by all those whose lives are yet to come, in a way that is now new within human history.

And also let this discussion of energy policy be a clear indication of how political, social and economic decisions are being evaluated by elected officials whose governing principles in office are based on knee-jerk, black-and-white, profit-and-loss perspectives. As we can see in this issue of energy policy, so many equally cogent factors are lost to consideration with such irresponsibility. We only get what we vote for.

David McQuade lives in Hancock.

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33 Comments

  1. Thank you David for saying this so well. We truly need to make the switch to  clean energy. Many nations are far along in the process. Time we get going and do our share to insure the planet maintains a livable climate.

  2. Wouldn’t it be interesting if every oil, gas, and coal company in the world read this vacuous tripe and decided to shut down to show us how indispensable fossil fuels are to civilization. Just shut their doors and let us use wind and solar to power our world. For a week. Call it the McQuade Act. Imagine the chaos and all the folks who would suffer without fossils fuels – no imagined and specious “externalities” but real and measurable deprivation. How does a rubbish like this get printed?

  3. Is Maine known for any export products other than lobsters and tourism? Not really. What
    is our largest import? Energy. Maine’s offshore wind energy is one opportunity to export a Maine product to states wanting to cut-back on fossil fuel related pollution. Exporting wood pellets may well be another. These opportunities are attracting outside investment and are creating jobs for Mainers. (Wind energy related jobs in the US have outnumbered all iPod
    associated jobs by a factor of 3).  The new and developing technologies involved will lead to upgraded educational facilities and higher skilled workers in Maine, which would make the state considerably more attractive for business growth and attraction. Yet the usual naysayers prefer to disparage clean energy options in general and wind in particular, apparently believing that natural gas alone will provide our path to economic salvation. Here’s why that won’t work: Gas is cheap and it will greatly help Maine residents and industries alike but it will be just as cheap in Massachusetts, New Hampshire, Canada and many other places, so it doesn’t provide us with a meaningful  competitive edge. Besides, we must import all of it. We owe it to our children and grand-children to attempt to position Maine as a leading-edge state in any technological market segment when opportunities present themselves. Offshore wind, which would necessitate local production, erection, positioning and servicing of new generation, highly complex floating turbines is one such opportunity. We reject them at our economic peril.

      1. Yes it does:

        American Wind Farms Breaking Down the Benefits from Planning to Productionhttp://www.nrdc.org/energy/american-wind-farms.asp

    1. Why is prudence and caution bad?  We could use a little more of it in our government. I don’t think Mr. Fletcher rejected offshore wind.  He just wants a better explanation and some assurances that we’re not going to get burned in this deal.  There ARE other industries in Maine besides wind power development.  If you want to talk about economic peril, ignore them and put all your eggs in one basket (wind energy) that is almost completely reliant on continued supportive government policy AND high energy prices.
       
      If offshore wind holds promise for Maine, terrific – let’s study it and then go where the new information takes us. We haven’t even floated the first test platform yet – that’s scheduled for next year. There’s been virtually no public discussion about the ultimate expense of building the enormous new transmission network that would be required, just for offshore wind. Let’s learn a lot more about the true costs before we commit.  We dive into way too many holes without knowing where the bottom is. Let’s not sign the contract this time until we’ve seen the fine print.

      Our state messed up land-based wind development in 2008 because we charged ahead without asking questions, pushed by those who didn’t want us reading that fine print. Let’s not make that mistake again. Being careful and asking questions is not a rejection of anything, it’s just good judgment.

    2.  You make a lot of pie in the sky statements, presented as “facts” with no evidence to support them at all.  Lets even assume that we go down the path you suggest and build a huge number of massive offshore wind turbines.  What makes you think that ANY of these will be locally produced other than the original test platforms?  Just how attractive will Maine be to new business with electricity rates at least quadrupling?

      1. The facts are that energy is Maine’s biggest import and that offshore generated power would be mostly exported to other states. I present no “facts” about future development but it is entirely reasonable to assume that much of the offshore platforms, masts and blades would need to be produced locally as they would be too large to transport  from anywhere else. Turbines would be assembled locally and, once installed, the floating systems would be serviced from Maine ports by Maine workers using Maine built vessels. Besides, Maine can demand local fabrication and workforce development as part of any project approval process. 

        1. There is no guarantee that other states will purchase expensive power from Maine. Wishful thinking on your part. And what about all those people proposing that this power be used in Maine?

          The turbines will be built at sea. Turbines are presently shipped by sea from foreign countries. There is no reason to expect the present pattern will not be continued. There is little chance that the servicing vessels would be built in Maine. And just try and get a demand for local fabrication and workforce development as part of any project approval process. Lawsuit magnet or just a way to prevent the project from ever getting built?

          1. You are well  behind the learning curve on the technical aspects. Landbased turbines are now being built mostly stateside, as are blades and towers. Over 500 manufacturing plants involving at least 30,000 production jobs have been created over the past five years and at least as many service jobs.  Floating offshore installations of a minimum of 6000MW will be built in port and on land, not at sea, for reasons of cost and practicality. They will not be towed from overseas. Maine is perfectly positioned with its industrial composite technology base, port facilities, seafaring, ship and boat building expertise. All of this information is available via the Internet if you want to take the time to study it.

          2. Almost all of those jobs and companies are dependent on substantial federal government subsidies to make them even marginally competitive.

            And where is the port in Maine where these huge floating monstrosities will be built? Where environmentalists will allow it? That have the infrastructure, including suitable land based transportation, to support the industry?

          3. Lots of jobs in the US are dependent on federal subsidies. Wind energy subsidies must be looked at in the larger context of reduced energy imports (dollars much better spent in the US than sent overseas), avoided environmental costs (mining, drilling, fracking, etc.), avoided healthcare costs (due to air pollution) and increased energy independence.
            Maine’s offshore wind turbines will be out of visual range but would hardly be “monstrous”, certainly not in comparison with drilling rigs, oil refineries or mining pits. They can be built in the same locations where ocean-going ships are currently built and serviced.
            The point here is not that offshore wind energy is the ultimate answer, because it isn’t and it must always be combined with other energy sources, such as hydro, gas or biomass. It does, however, merit unbiased consideration inasmuch as it has the potential of providing Maine with very substantial opportunities to attract investment, generate state-of-the art production facilities, improve its workforce, increase its exports and significantly improve its economic outlook. It would be foolish to dismiss such potential benefits out of hand.

          4. The point is that all subsidies should be ended. And I agree it would be much more productive for that money spent on energy to be spent here in the US. It would be even more productive spent on proven energy sources requiring no government subsidies.

          5. Maine’s offshore wind is highly predictable and is rated as one of the highest possible output regions in the country.

  4. The author writes: “As one suggestion to meet these additional expenses, why couldn’t those who more greatly benefit from our current energies, i.e., the more affluent among us, share a proportionately greater burden of these costs”.

    Why don’t you keep your hand out of other people’s wallets?

  5. There’s more evidence all the time that fossil fuels are really from a natural abiotic process of the inner earth.   We’re using more oil/petroleum around the world, yet we’re not running out.  Prices are higher because of increased demand and governments limiting (like the Obama administration) and/or controlling supply (like OPEC countries).

    1. That theory has been broached for decades and has been largely discredited.  Recoverable reserves and at what price is the key issue.

    2. “There’s more evidence all the time that fossil fuels are really from a natural abiotic process of the inner earth.   We’re using more oil/petroleum around the world, yet we’re not running out. ”
      There is no evidence whatsoever that supports biogenesis of petroleum aka abiotic. The is significant evidence that we have already passed peak oil production, not the least of which is that it is now profitable to exploit things like tar sand and oil shale deposits.

  6. I think most everyone wants clean air, clean water and the greatest energy independence that is reasonably possible.  But, some of us want answers before we commit ourselves and our money to something that’s, so far, been short on details.

    The writer covers a lot of ground with regard to the positive ideals that many of us consider desirable. But like most who cover the same ground when talking about wind development, he provides no supportive evidence that any of this could actually be achieved with this plan. We’re currently operating mostly on the promises of those who have a financial or ideological interest in seeing it move forward.I want clean air  and energy security too. But, I’m not interested in placing a huge bet based on just faith and hope. That’s not good enough for me. I want details, facts, and answers – first.

  7. I highly doubt the world is ready to progress to traveling and shipping by sailing ships and schooners instead of jet airliners and ocean going freighters but I could be wrong.  Since Maine doesn’t use fossil fuel to generate electricity it seems a strange argument to make, that these turbines will displace us from “foreign oil”.  It’s the PUC’s job to protect the ratepayers from unnecessary jumps in electricity prices.  Governor LePage should be (and in fact IS) working to reclassify hydro power as a renewable and contract for a low rate with Canada.  That hydro would supply all of southern New England unti hell freezes over.  Hydro is dispatchable.  Industrial wind isn’t.  There’s a huge difference between the two when it comes to supplying power to the grid.  Maine doesn’t need any more electricity and we don’t need those souped up expensive new transmission lines.  We need to LOWER our electricity prices, not jack them up.  

    1. Ah, but at least some power plants use natural gas (as well they should) and that’s a fossil fuel.

  8. david,  we all want “I need to see an accurate, full accounting that includes these externalities in any true financial analysis comparing wind-generated power versus fossil fuels.”

    Canadian Hydro will make Boston one of the “greenest” cities in the world.   Leave Maine’s property values and “value of place” alone.

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