Governor LePage Announces Energy Legislation, Aimed at Reducing Costs

AUGUSTA – Governor Paul LePage introduced legislation which focuses on reducing the cost of energy for Mainers today. This legislation will focus on providing Mainers more options for energy, and it also has an emphasis on reducing the costs for Maine ratepayers.

“One of the largest inhibitors, if not the biggest obstacle to job creation is Maine’s high energy costs,” said Governor LePage. “The number one focus of my administration is jobs, and if we want economic prosperity in Maine, we need to focus on reducing the cost of electricity and energy for Maine’s job creators,” continued the Governor.

The four pieces of legislation are:

An Act to Lower the Price of Electricity for Maine Consumers: This bill would remove the 100 megawatt cap for qualifying renewable generation, specifically hydro power. Wind generation can already qualify if greater than 100 MW. This re-enforces the policy that long term contracts for electricity must place reducing electric prices as a top priority.

An Act to Provide Transparency in Electricity Pricing for Maine Ratepayers: This bill requires the Maine Public Utilities Committee and the Office of the Public Advocate to submit budgets based on a “zero-based budget approach.” It also requires the MPUC and OPA websites to show the cost of various fees and charges on electricity, expressed as a total annual cost. Electric transmission and delivery utilities would also have to provide information on electric bills as to the various fees and charges on electric billsexpressed as total annual cost.

An Act to Improve Efficiency Maine Trust Programs To Reduce Heating Costs and Provide Energy Efficient Heating Options for Maine’s Consumers: The existing voluntary contribution Renewable Resource Fund is expanded to also allow voluntary contributions to Energy Efficiency which can be used by the Efficiency Maine Trust for efficiency programs. The bill also establishes a home heating equipment rebate program of 5% for qualified systems using existing funds and provides new opportunities for consumers to access efficient alternative energy systems. Under this legislation, the Efficiency Maine Trust would submit a budget for approval by the Legislature.

An Act To Change the Name of the Governors’ Office of Energy Independence and Security:The name of the office would change to the “Governor’s Energy Office,” and would utilize Efficiency Maine Trust funds to support the office, which would eliminate the position in the Office of the Public Advocate, and reduce the assessment on utilities, reducing the cost to Maine ratepayers.

“My energy policy will focus on all forms of energy, providing Mainers the freedom to choose which sources to buy from,” said Governor LePage. “I do not support Augusta being in the business of increasing costs of Maine people to pad the pockets of special interest groups. We need to empower Maine people to take control of their energy fate,” continued the Governor.

The goal of these legislative proposals is to focus on providing energy options for Maine people, reducing the cost, and bringing transparency to electricity bills.

http://thevalleyvoice.org/2012/03/09/governor-lepage-announces-ener...

Fair Use Notice: This website may reproduce or have links to copyrighted material the use of which has not been expressly authorized by the copyright owner. We make such material available, without profit, as part of our efforts to advance understanding of environmental, economic, scientific, and related issues. It is our understanding that this constitutes a "fair use" of any such copyrighted material as provided by law. If you wish to use copyrighted material from this site for purposes that go beyond "fair use," you must obtain permission from the copyright owner.

Comment by Art Brigades on March 10, 2012 at 10:26am: Everybody hears "Canadian Hydro" and they assume "Hydro Quebec," the behemoth Provincial utility that exists to produce gobs of electricity at the lowest possible price for the Quebecois. And it does. So cheap that 2/3 of Quebec times heat with electricity. One way they reduce the cost is by exporting electricity at the highest marketable price.

Mainers have long FEARED HQ's ability to dominate our electricity market. Much of that fear is well-founded. Or WAS well-founded. Two things are radically different now:

1. When Restructuring was enacted in the 1990s, Maine utilities were forced to sell their generation assets. Both the utilities and the potential buyers of those generators justifiably wanted assurance that the assets would hold their market value. If HQ were to swoop in and underprice our electricity market, the debt-laden new owners of all those Maine power plants could fail, leaving a bunch of shuttered power plants and major stranded costs for Maine ratepayers. Once Maine power plants closed, HQ could dictate rates. So for these reasons and more, the 100 mw provision was added to the definition of "renewable." CMP and BHE got to sell the assets for a good price because of the assurance granted to potential buyers. The 800 # gorilla from Canada was held off. But most of the debt incurred for those assets has now been paid down. The owners of Maine power plants can and should compete without government protectionist/isolationist policy.

2. Back in the 1990s HQ's counterpart Provincial utility in Newfoundland/Labrador was building massive hydroelectric generation. But HQ and Nalcor entered into a deal to send most of the power and the profit to Quebec. Newfoundlanders profoundly resent Quebecers in part because of that lopsided deal. But Nalcor has continued to build. Now they have stuck it to their nemesis by signing a huge deal with the Maritime provinces, where lots of indigenous coal is still burned for electricity. That November, 2010 deal is significant for Maine because it essentially connects Maine to Nalcor, via New Brunswick & Nova Scotia, or even by submarine HVDC transmission. It gives Maine leverage in dealing with HQ. Our geographic location puts us in the catbird seat because ideological legislatures in states to our south have also enacted renewable power mandates, but of course, they don't want to host wind "farms" and such. See the Nalcor story here: http://www.southerngazette.ca/News/2010-11-23/article-1984465/%246....

Is a flow of Canadian power imminent? No. Is it even needed? Not so much; six of our nine biomass plants in Maine are idle. Our modern fleet of natural gas plants operate far below capacity. There are some 5000 mw of older dirtier generation plants in the ISO-NE that could be headed for decommissioning in a decade or so. They are base load plants. We know that windmills cannot replace them, so Canadian renewable base load sources are attractive.

But does opening the door help our marketplace? Yes. good move by LePage.

See the Nalcor story here: http://www.southerngazette.ca/News/2010-11-23/article-1984465/%246....

Governor LePage Announces Energy Legislation, Aimed at Reducing Costs

Governor LePage Announces Energy Legislation, Aimed at Reducing Cos...

You need to be a member of Citizens' Task Force on Wind Power - Maine to add comments!

Hannah Pingree on the Maine expedited wind law