Maine PUC Deceives Maine Ratepayers Using the Spin Zone.

The Maine PUC CAN NOT assure the people of Maine that Massachusetts will pay 40% of the costs of the Northern Maine Renewable Program:

". The Parties acknowledge and agree that any such contracts related to Massachusetts’ share of any winning Project shall be negotiated and executed by the Massachusetts EDCs, assuming they can agree to terms and conditions with respect to any such cost-effective long-term contracts, which shall then need to receive all necessary regulatory approvals, including with the DPU. Massachusetts and the MA EDCs shall have no liability to Maine or any other party regarding the termination of contract negotiations or the failure of the long-term contracts to receive DPU or any other regulatory approvals."

And the Maine PUC CAN NOT assure the people of Maine that their savings calculations are based on factual numbers. "HOPES", "FORECASTS" and "ESTIMATIONS" ARE NOT FACTS !

" 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, reducing the overall burden for Maine ratepayers over the life of the project. If, as the Commission hopes, additional entities are identified and are willing to procure some portion of these projects, the cost for Maine ratepayers will be lowered further  "

A Commissioner Has Concerns

  CONCURRENCE. There is no question that the projects proposed by LS Power and Longroad will advance Maine’s renewable energy and climate goals, while providing important economic benefits for northern Maine communities. However, my concern is the financial effects of this decision when combined with all the other costs imposed upon Maine ratepayers by recent public policy decisions. See, e.g., Maine Public Utilities Commission, Investigation Regarding Management and Sale of Transmission and Distribution Supply Portfolios, Docket No. 2022-00221, Order at 3-4 (noting the generating capacity under contract through Net Energy Billing and long-term contracts). 

Over the past two years, supply costs have surged due to the rise in natural gas prices. Costs for transmission and distribution have increased in recent years and will likely continue to increase in the coming years due to (a) load growth associated with beneficial electrification of the transportation and heating sectors; and (b) enhancements meant to increase the reliability of the grid with respect to increasing storm frequency and severity. Further, the Net Energy Billing Program will shift hundreds of millions of dollars onto Maine ratepayers. 9 This is in addition to the ratepayer costs associated with past renewable energy procurements the Commission has been directed to undertake, as well as additional, future procurements the Commission may be required to undertake (including an offshore wind procurement the Commission is currently evaluating). 10
 Any individual public policy program, when evaluated in isolation, may have reasonable costs. But when considered together, the combined costs are high. By choosing to fund these programs through electricity rates, which are by nature regressive, we impose a tremendous burden on Maine’s low-, moderate-, and fixed income residents.
 I fully support the State’s efforts to transition away from carbon-based energy systems. It is the imperative of our time. And as we pursue public policy programs to help us achieve these goals, we must make progress in the most cost-effective way. If a   program or new investment is worth pursuing, and I believe this one is, we must consider how to fairly fund it. If we have the conviction to do what is necessary to fight climate change, then we must also have the conviction to do what is right when paying the costs of the clean energy transition. We should seek ways to fund these projects through general revenues, a statewide bond issuance, or some other mechanism in which the costs are more fairly distributed. We should not bury these costs in electricity rates that disproportionately impact ratepayers, particularly the most vulnerable ratepayers who are already struggling to pay their bills
  9 In November of 2020 the Commission reported to the Legislature that, based on the number of Net Energy Billing Agreements that were pending at that time, there would be $160 million in lost revenue to Central Maine Power and Versant Power that would have to be recovered from ratepayers on an annual basis. Maine Public Utilities Commission, Report on the Effectiveness of Net Energy Billing in Achieving State Policy Goals and Providing Benefits to Ratepayers at 10 (Nov. 10, 2020). Both Central Maine Power and Versant file regular reports with the Commission that provide updates on the projected lost revenue from Net Energy Billing, which must be recovered from ratepayers. See Maine Public Utilities Commission, Net Energy Billing Evaluation, Docket No. 2020- 00199.
    10 See New England Aqua Ventus, Request for Approval of Long-Term Contract Pertaining to New England Aqua Ventus, Docket No. 2022-00100

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

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(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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