The Maine PUC : Trying To Erase The Flaws Of Wind

The Maine Public Utilities Commission ( Overseers of electric rates in Maine ) must be having one of those “ If we only knew then what we know now “ moments . In 2009, the PUC mandated a contract between a wind turbine project owner in Lincoln, Maine and Central Maine Power and Bangor-Hydro. An article from the Lewiston Sun Journal appearing in April 2010 states “The 20-year contract between Rollins’ owner, First Wind, and CMP and Bangor Hydro Electric Co. was hammered out by the Maine Public Utilities Commission. It's a technical, 11-page document that contains a broad range between the highest price ($110 per megawatt-hour) and lowest ($55 per megawatt-hour to start).”

Compare that to the following:

The first quarter report from ISO-NE, ( the non-profit regulatory agency that oversees electricity flow for six states in New England and who declares within their website, has the “ mission of ensuring the constant availability of reasonably priced electricity for New England's residents and businesses.” ) reveals a overall price of electricity supply offers at an average of $32.59 per megawatt-hour. Compare this to the first quarter overall average price in 2011 at $57.53 per megawatt-hour. This reduction is mainly attributable to a 41% reduction in the cost of natural gas. Natural gas fired plants account for nearly 50% of the electricity used in New England and overseen by ISO-NE.

The PUC assumed gas prices would increase and make wind less costly and used that for the reason to push through the above contract. CMP initially argued against the contract, stating it would increase rates. The PUC website has documents that reveals negotiations and their rational for accepting this contract for those who can navigate their way throughout their website.

If these current gas prices remain relatively stable, the PUC can’t possibly use the argument that wind prices will become cheaper than gas ( not at $55 to $110 per megawatt-hour ), meaning no new contracts between wind and utilities in Maine !

Lisa Linowes points out an occurrence we are seeing :

A wind plant’s revenue may be below its annual total cost which could
require the plant owner to secure higher than market value power purchase agreement(s);”

One of Patriot Renewable’s Power Purchase Agreements :


Patriot Renewables, a developer, owner, and operator of commercial wind energy projects, is potentially looking to erect between 5-7 turbines at the Woodstock, Maine site, according to the U.S. Department of Energy website. There are currently 1.5 turbines there. Norwood, Massachusetts will be signing a fixed-rate, 15-year contract for the 17 percent share of the project. The fixed rate would be set at $99.70 per megawatt hour.

The RPS at work and increasing electric costs to the consumers. If you can’t sell it in Maine, sell it in Mass., where the prices are higher already.

 

Lisa also observes :

By displacing conventional generation, primarily natural-gas-fired
resources, revenues for displaced plants would decrease and their
economic viability would be put at risk. Increases in capacity market
payments may be necessary to ensure these plants do not shut down.”

We have heard how wind will offer day ahead prices at $0 to ISO-NE citing no fuel costs. We also understand that the intermittent wind will never remove the need for gas plants. At $0 offer, wind is displacing production from the gas plants. The gas plant owners will need to increase their day ahead offer to offset loss of revenue due to reduced production. The clearing house price goes up and because this price goes to all generators, wind makes out using a $0 offer.

A flawed electrical generator taking advantage of flaws in the ISO-NE day ahead auction process.

The Maine PUC mentality has evolved to where they are supportive of wind power in Maine as long as the purchases are made out of state. They think this will not affect in-state rates, but creates an influx of money to the state. I think they need to study the ISO-NE structural make-up before buying into this option. They are very blind at times and cast aside their requirement to act in a manner to reduce electric rates when political pressures are applied upon them.

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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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