If the transmission project can't comply with the rules, rig the rules. The Northern Maine Renewable Development Program story

"Maine Can't Wait!" pretty much sums up the attitude of the Augusta democrats and, to be factual, a number of make-believe opposition party people.  The Northern Maine Renewable Energy Development Project hit a snag when the original selected transmission line contract was terminated after the project developer wanted to increase their bid after the fact. The PUC rightfully protected the interests of the ratepayer by refusing to entertain any further  negotiations. Clearly a breach to the intent of the long term contract bidding process. After all, the PUC expressly stated in the original proposal: "NOTE REGARDING EVALUATION OF COST: The Commission’s evaluation will focus on the cost and benefits to Maine ratepayers rather than the overall costs and benefits of the project."
BUT, did the PUC really terminate the procurement on behalf of the ratepayer or because there evalutions would prove to be well off the mark?
 In the "Order Approving Term Sheets"  November 1, 2022, the PUC states:  " With respect to the transmission line, the statute anticipates approval of a Transmission Services Agreement (TSA) with a length of 30 years. "
The statute provides the following evaluation criteria for transmission proposals:
 • Cost; 
 • Economic benefits to Northern Maine; 
 • The qualifications of the bidders;
 • The long-term viability of each proposal; and
 • The anticipated contribution of each proposal toward the achievement of the State’s renewable energy goals as set forth in 35-A M.R.S. § 3210.
 
The PUC also stated in the same Order:
"Therefore, the Commission concludes that the qualitative statutory criteria do not create a clear delineation among the proposed Transmission Projects. Where the Project proposals varied is with respect to the quantitative analysis, that is, the total cost to ratepayers as represented in the proposals and the net cost to ratepayers when combined with the generation proposal selected and described below. The Transmission and Generation Term Sheets selected through this Order represent the “most cost-effective and efficient” means to fulfill the objectives of the Act."
(So, the PUC, within the same document changed the: "  focus on the cost and benefits to Maine ratepayers rather than the overall costs and benefits of the project." to  “most cost-effective and efficient”.)
 
The Portland Press Herald, January 31, 2023 reported:
"The Public Utilities Commission estimated a pair of wind-power and transmission projects would cost ratepayers $1 billion for a 60% share of the electricity output from what would be the largest wind farm east of the Mississippi River, adding $1 a month to a typical residential electric bill for 10 years."
 
The PUC further stated in the Order :
"The Commission has determined that the two term sheets it has selected satisfy the statutory criteria at the lowest cost. The combination of these Projects will result in a transmission line from northern Maine that will carry output from a 1,000 MW wind power facility. The ratepayer cost of the transmission line is approximately $2.78 billion, while the wind power Project is expected to provide a ratepayer benefit of $1.08 billion. Thus, the net cost is approximately $1.7 billion over 30 years. This combination of Projects is significantly less expensive than any other alternative combination of Transmission and Generation Projects and meets the statutory criteria."
Could there be a certain amount of hocus pocus with the PUC's numbers?
The PPH report:
"The combination of these two projects will help lower wholesale electricity prices in Maine and New England, the commission determined, and save Mainers $1.08 billion over 20 years, based on contract payments minus estimates of future energy costs."
"estimates" ?  ( the approved transmission project proposal was for 30 years with annual escalation of 1% and the generation proposal was for 20 years with annual escalation of 2.5% and Massachusetts was only in for no more than 20 years ) Massachusetts had committed to paying 40% of costs for the initial 20 years and no more than 20 years of a 30 year contract for the transmission line and 20 year contract for a generation project. In a letter to the PUC, March 8,2023, Massachusetts amended the wording to "for less than or equal to 20 years"
 
In a February 3, 2023 PUC order they changed their estimate of costs to ratepayers:
According to calculations based on currently available market forecasts, the projected net ratepayer cost of the Northern Maine Renewable Development Program is approximately $1.28 billion over a 30-year period.  This cost, while significant, was priced through a competitive process and within the range of what lawmakers should have reasonably expected when advancing such legislation. With a commitment from Massachusetts for 40 percent of the cost, the cost to Maine ratepayers is estimated to be approximately $960,000,000..... ( so the net ratepayer cost went from $1.7 billion to $1.28 billion based on estimates(guesses: i.e. estimate or suppose (something) without sufficient information to be sure of being correct) ,  in a period of 3 months?  Shifting back and forth from 10,20,and 30 years with numbers no one can verify, partly because the numbers from the developers were always kept from the public and partly because guessing what prices in future wholesale markets will be, is bad policy, at best case, disceptive, at worst case.
The first attempt to secure contracts for the Northern Maine Renewable Energy Development Program was no less than a disaster and resulted in a termination of the procurement.
But, an undaunted Maine Legislature wasn't about to give up and made a new law to revamp how the PUC would evaluate proposals. The  priority of ratepayer costs is now replaced with "project viability" as told to me by PUC Chairman Bartlett.
A definition of "project viability" provided by the Massachusetts Department of Energy Resources is:  Project viability shall mean that the Projects have received sufficient financial commitments (through state determinations or other binding commitments) to support the progression through critical milestones to commercial operation. 
 
Maine Can't Wait! No matter the costs. No matter that Maine already produces renewable electrical energy equivalent to Maine's electrical consumption. When will Maine become independent of the will of Massachusetts? When will Maine lawmakers stop marching us down the path of energy poverty?

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Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

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(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

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