David Wilby, member of Baldacci's wind task force must think wind power would be competitive in the free market

WHAT CENTRAL MAINE POWER DOESN’T WANT YOU TO KNOW
Dave Wilby, Executive Director, Independent Energy Producers of Maine
Angela O’Connor, President, New England Power Generators Association
Are Maine consumers better off now that energy generation is deregulated? The answer
is yes.
In fact, Maine consumers are much better off contrary to the recent commentary by Sara
Burns of Central Maine Power. Wholesale electricity prices in New England have
declined by 16.5% from 2001 – 2004 when adjusted for fuel costs and inflation and
Maine consumers pay about ten percent less for their energy supply than the rest of New
England.
This decline in wholesale costs is the result of a competitive market which prompted the
construction of 10,000 megawatts of new, clean and efficient generating plants, replacing
many of the region’s older inefficient plants. Five of these new plants, representing 1,700
megawatts and more than $2 billion of investment, have been built in Maine. These new
plants are cleaner as well as more efficient so emissions of key pollutants have decreased
even as energy consumption has increased throughout the region. Clearly, deregulation is
better for Maine consumers and the environment.
But the real question is: should we ask consumers to pay for expensive new generation
rather than purchase power from the competitive market? The answer is no. Power
generation is like any other business: the market should determine what is bought and
sold; who fails or succeeds; and at what price.
The fact is Central Maine Power would like to get back into the business of building
generating plants and have consumers pay for it…again. History has shown that Central
Maine Power and New England’s other regulated utilities made poor choices about what
power plants to build–creating billions of dollars in stranded cost—and operated these
plants less efficiently than merchant companies. And Maine is still paying the costs of
those decisions today.
For example, when Maine restructured its electric industry, Central Maine Power was in
financial difficulty. The reason is its investment in Maine Yankee, as well as other
nuclear plants in the region, had gone sour leaving it in debt and with nearly $1.3 billion
in stranded costs that it was seeking to recover from ratepayers. So in 1999 Central
Maine Power sold its power plants for $846 million recovering its investment and
reducing the stranded cost burden for its ratepayers by over $500 million. Without
restructuring, where would Central Maine Power and Maine ratepayers be today?
More recently, in 2005, Maine ratepayers, just like so many others across the country,
saw an increase in electricity prices. Why did Maine ratepayers experience such an
increase? Since Maine is largely dependent on natural gas and oil for generating
electricity in the state, consumers were particularly hard hit due to global fuel markets as
well as hurricane related damage to oil and gas production facilities. Of course, Central
Maine Power would like you to believe that restructuring is to blame for these recent
price increases. But ask yourself this question: How could Central Maine Power build
new generating plants at ratepayer expense and alter this global phenomenon? The
answer is: They can’t.
The reality is competition makes everything stronger. Competitive markets are still the
best means to produce a reliable and affordable energy supply for consumers.
Competitive energy markets also mean more job growth and economic development that
is necessary for a healthy New England economy.
That is why no one is in a better position to reap the benefits of competitive power
generation today than Maine.
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David Wilby is the executive director of the Independent Energy Producers of Maine (IEPM) is a not-forprofit
association of renewable power producers, suppliers of goods and services to those producers, and
other supporters of this industry. IEPM power producer members generate electricity in a sustainable
manner from hydro, biomass, wind, and waste to energy. Located in Augusta, Maine, the IEPM represents
the renewable power industry at the State Legislature and before the Maine Public Utilities Commission.
Angela O’Connor is the president of the New England Power Generators Association, (NEPGA) the largest
trade association representing electric power generators throughout New England. NEPGA’s member
companies represent over 20,000 megawatts (MW) of generating capacity in the region. NEPGA’s mission
is to promote sound energy policies which will further economic development, jobs, and balanced
environmental policy. We believe that sustainable competitive markets