Evolution of Maine’s Electric Utility Industry 1975-1995 Carroll R. Lee Richard C. Hill
"During the past two decades, dramatic changes have occurred in Maine’s electric utility industry, planning for power supply, and regulation of electric utilities. The predictions of the 1970s and early 1980s of energy supply shortages and high oil prices have not proven accurate. But energy policies were implemented based upon those predictions. Maine’s electric utilities and their customers were burdened with very high power supply costs due to high-cost QF (Qualifying Facilities = small, renewable fueled (biomass, refuse, and hydro) power plants) contracts and diminished electricity demand caused by high electric prices, electricity conservation, and fuel switching."
" Maine’s electric utilities have responded to these competitive changes in several ways. First, significant efforts have been undertaken by electric utilities to reduce their cost structure, including the buyout of high-cost QF contracts. In many cases, the cost of just operating these QFs has exceeded the total cost of replacement power supply, which allows the utility to buy out the owners of such facilities and still achieve net savings. These new pressures also caused electric utilities to reduce employment by hundreds of employees and implement substantial changes to business processes."
Deja-Vu: Replace QFs (Qualifying Facilities ) of the 70s and 80s With Solar,Wind and Batteries of 2010 to 2030
by Dan McKay
13 hours ago
Evolution of Maine’s Electric Utility Industry
1975-1995
Carroll R. Lee
Richard C. Hill
"During the past two decades, dramatic changes have occurred in Maine’s electric utility industry, planning for power supply, and regulation of electric utilities. The predictions of the 1970s and early 1980s of energy supply shortages and high oil prices have not proven accurate. But energy policies were implemented based upon those predictions. Maine’s electric utilities and their customers were burdened with very high power supply costs due to high-cost QF (Qualifying Facilities = small, renewable fueled (biomass, refuse, and hydro) power plants) contracts and diminished electricity demand caused by high electric prices, electricity conservation, and fuel switching."
" Maine’s electric utilities have responded to these competitive changes in several ways. First, significant efforts have been undertaken by electric utilities to reduce their cost structure, including the buyout of high-cost QF contracts. In many cases, the cost of just operating these QFs has exceeded the total cost of replacement power supply, which allows the utility to buy out the owners of such facilities and still achieve net savings. These new pressures also caused electric utilities to reduce employment by hundreds of employees and implement substantial changes to business processes."
Full Report : https://legislature.maine.gov/testimony/resources/EUT20250410MCKAY133888651260357397.pdf