PUC Approves Unnecessary $1.4 Billion in CMP Transmission Allowing Wind Companies to Send Their Electricity Out of State

May 14, 2010

CMP line plan OK’d

Utility scales back plan, will pay $17M to back efficiency

By Ethan Wilensky-Lanford ewlanford@mainetoday.com
Staff Writer

BY ETHAN WILENSKY-LANFORD

Staff Writer

Central Maine Power Company's plan to expand electricity transmission within Maine won approval from the Public Utilities Commission on Friday, but in a modified form.

"There is growing recognition in state policy and statute of the need to move toward indigenous renewable resources and likely increased electrification, in order to move beyond our reliance on domestic and foreign fossil fuel," said Commission Chairwoman Sharon Reishus. "I am satisfied that the project will bring net economic benefit to Maine ratepayers and will allow Maine to meet its electric transmission needs for the next ten years."

Commissioners said negotiations on the project -- known as the Maine Power Reliability Project -- were "exhaustive." The negotiations took place alongside an application process for the original plan, which formally began in July 2008 and involved over 180 different parties.

CMP plans to build about 500 miles of transmission lines across 350 miles of land between Orrington and Eliot. It will cost $1.4 billion and take five years to complete. CMP's original projection was $1.5 billion, but several pieces of the project were suspended as part of the compromise settlement.

One of those lines that was suspended would have been between the towns of Winslow and Warren. The commissioners also recommended Friday that the final siting of a spur in Yarmouth be postponed until CMP communicates further with property owners there.

CMP still needs approval from the U.S. Army Corps of Engineers, but hopes to begin construction in June. In 2012 and 2013, the company plans to hire more than 3,300 new employees for the project.

"Maine has never seen a project like this," said John Carroll, CMP's spokesman.

As part of the agreement, CMP has volunteered to pay a total of about $17 million over the next 10 years to promote energy efficiency, as well as $1.5 million to support the PUC and the Office of the Public Advocate.

Commissioner Jack Cashman said in the deliberations that he felt it was inappropriate for the commission to authorize funding for its own operations.

"If I was in the Legislature, I would want to know under just what authority we took this action," he said.

The expansion project will be paid by ratepayers in the New England regional power grid. Maine ratepayers will be responsible for 8 percent of the costs.

An ombudsman position will also be created to help address property owners' concerns regarding the siting and construction of CMP's new transmission lines.

CMP will do also business with another company, Grid Solar, as part of Friday's agreement. Grid Solar had had originally presented an alternate plan to the CMP's project that focused on generation, rather than transmission.

The company will be hired by CMP at an estimated cost of $300,000 to develop a smart-grid platform and two pilot projects. Last November, CMP received a $96 million federal grant to install similar technology, which Carroll said the company aimed to have in place by sprang of 2012.

And as the smart-grid operator, Grid Solar would conduct a periodic request for proposals as approved by the commission.

"If the commission tells us to submit our own bids, then we will do that," said Richard Silkman, a co-founder of Grid Solar. "It is not Grid Solar's intent to submit proposed projects in response to this project."

The two pilot projects would be the Portland and central Maine areas -- assuming the commission gives them a final green light.

"We're delighted," said Silkman. "We'll accept the role that has been carved out for us."

Ethan Wilensky-Lanford -- 620-7016

ewlanford@mainetoday.com

http://www.kjonline.com/news/cmplineplangoes_2010-05-14.html

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