Special to the Pioneer Times
HOULTON – Maine Public Service and Central Maine Power have joined forces in what they’re calling the Maine Power Connection (MPC) project. The project aims to build a physical power connection joining northern Maine to the rest of the state and New England via the 25 mile gap that exists between Houlton and Haynesville. No such connection currently exists; power moving into or out of northern Maine must be routed through eastern Canada.
MPC began researching the project in March 2007, in response to concerns over the lack of power competition in northern Maine. Phase one of the MPC feasibility study researched an interconnect of Maine Public territory to the New England electric grid, but found that it would not be economically feasible – the costs outweigh the potential economic benefits to Maine Public ratepayers.
Phase two researched a Maine Public interconnect, plus 800 MW (megawatts) of proposed wind energy projects, including a substantial wind farm in Bridgewater, and found that this could be feasible with the participation of ISO-New England and its member utilities.
Maine Public is currently seeking membership in ISO-New England, which is an energy wholesale administration company and oversees the entire New England power grid. Potentially, the costs of building a transmission line connecting northern Maine to the New England power grid would be shared among other ISO-New England members. Likewise, northern Maine taxpayers would share 8 percent of costs of any projects in southern New England in Massachusetts and Connecticut, for example.
Opponents of ISO-New England argue that the style of price allocation places an unfair burden on Maine ratepayers who don’t benefit from the cost sharing. Electricity costs in Maine have sharply risen in recent years. Last month Rep. Tom Allen (D-Maine) introduced legislation that would force ISO-New England to provide reliable service at the lowest possible cost. The Maine legislature has taken similar measures, and this year asked the Maine Public Utilities Commission to research solutions to unnecessary power costs and suggesting Maine may be best to pull out of ISO-New England.
Since Maine Public owns the transmission lines for the northern Maine region, Houlton Water Company (HWC) and other local companies will have no choice on joining the New England grid, once the decision is made. All of northern Maine will be affected in much the same way if the project goes ahead.
John Clark of HWC explained that at present, HWC takes no position on the MPC project, but keeps a close eye on ongoing cost analysis reports and feasibility studies.
“Our customers are our stockholders,” Clark said, “We have one loyalty.”
MPC provides a long list of potential benefits of the project, including increased reliability, connecting Maine to competitive energy markets, adding wind energy resources, increased state and local tax base and creating jobs, among others.
“We have to find real benefit – not potential benefit,” Clark said.
MPC continues to study the project, so few, if any, benefits or drawbacks of the project are for certain. Clark expressed concerns about unanswered questions.
“We need to find a way to hold our customers harmless; in addition it should be able to provide some benefit,” Clark said, “Our concern is if we tie in here, what are the costs? Some of the initial numbers we’ve seen – they almost scare you.”
“My concern is that customers will be steamrolled,” Clark added, “There’s a lot of big players in this.”
Richard Davies, of the Maine office of the public advocate, said that his office will be watching the project closely.
“If we can find a way of minimizing the cost on rate payers in Aroostook County it would be very useful,” Davies said, “But because of the cost implications, we would be scrutinizing that very carefully to make sure that in the process of putting in a project like this it doesn’t end up driving rates up.”
“It’s an interesting idea, it may serve some useful purpose,” Davies added, “We would want to evaluate all the aspects of it before we decide whether it was a good idea or not.”
A representative from Maine Public Service was not available to provide comment by presstime.
MPC is also continues to research the possibility of a new northern Maine interconnect with eastern Canada.
