Staff Writer
FORT FAIRFIELD — A decision by the Maine Public Utilities Commission to award the bid to New Brunswick Power Generation Corporation to provide for the residential and small non-residential and the medium non-residential customer classes in Maine Public Service Company’s service territory for a two-year period has raised concern over the future of Boralex, a Fort Fairfield-based business that has been operating and delivering energy in NMISA (Northern Maine Independent System Administrator, Inc.) in accordance with an energy contract with Integrys. The transition in providers is effectively scheduled for this weekend and may result in the loss of several jobs at Boralex’s Fort Fairfield facility. Plant Manager Robert Bruce addressed the issue in a recent company letter.
“As you know, NB Power has secured the Standard Offer for over 90 percent of the power needs of northern Maine. Unfortunately, this power is going to be used to replace the output of Fort Fairfield at the end of this month if something is not done to stop it,” stated Bruce.
Bruce questioned Boralex’s ability to compete in a market where the opponent is backed by the Canadian government.
“Imagine a foreign company, owned by their government and supported by government resources, along with an exchange rate of $1.20 to $1,” he continued. “This will directly eliminate 28 jobs and countless others indirectly in northern Maine if something is not done now. And for what?”
According to Bruce, nothing would be gained in the long run.
“You save $2 a month on a $100 light bill,” noted Bruce.
In an effort to raise awareness of the impact the PUC’s decision will have on the business and the local economy, a petition has been started to stop the importation of foreign power.
“We need to get as many signatures now to put a stop to this. Once the petition(s) are signed, they can be mailed to me at: Boralex Fort Fairfield, PO Box 430, Fort Fairfield, ME 04742,” said Bruce.
Attached with Bruce’s correspondence was a company memo detailing how the decision will affect the Fort Fairfield division.
While Integrys Energy Services will continue to provide for the large non-residential class in the MPS service territory, which represents 10 percent of the energy needs, BFF (Boralex Fort Fairfield) “has no possibility during these two years to sell energy in NEPOOL (New England Power Pool) because of the absence of a direct transmission line between NMISA and NEPOOL. Boralex’s goal is to keep Boralex Fort Fairfield in operation supplying energy and capacity in MPS service territory at reasonable conditions.”
At this point, the memo stated, “Boralex Fort Fairfield has no confirmation on the operation of the power plant after Feb. 28.”
Town Manager Dan Foster said news was “devastating” and would have a tremendous impact not only on his community but Aroostook County as well.
“They’re our largest taxpayer, paying $400,000 a year. That’s something we don’t want to lose,” said Foster.
Foster questioned the method used by the PUC in determining a power source for the county.
“What concerns me most is the process that’s used to determine how electricity is provided to residents of the area that would preclude companies that could meet that need,” said Foster.
Given the infrastructure of the area, there aren’t any options open to Boralex, according to Foster. The transmission line proposed by MPS and Central Maine Power, that was recently put on hold, would have provided Boralex with a way to distribute power to other parts of the state and New England.
“The current infrastructure doesn’t allow access to the market anywhere else,” said Foster.
Foster said with the governor and other government officials preaching ‘green energy,’ the PUC’s decision doesn’t make sense. But he understood the PUC’s decision was based on policies currently in place — policies that Foster said should be changed to take into consideration local businesses and the communities that depend on them.
“I called the PUC and talked with one of their staff lawyers. He explained it’s kind of a two-step process. Someone who wants to bid on Standard Offer has to meet the qualification process. Once qualified, they’re allowed to bid. By statute, it goes to the lowest bidder, nothing else plays a role (in the decision),” said Foster.
While the PUC’s decision was based on awarding the Standard Offer contract to the lowest bidder, it did not take into consideration how the local economy would be affected.
“We’re talking $4 million in labor, with the possibility of two facilities being closed down, and around $30 million in ancillary services at businesses throughout Aroostook County — stores, restaurants, gas stations, folks in the wood business, to name a few,” said Foster.
Foster said he’s been in contact with state officials to see what can be done.
“I’ve been in contact with Rep. Roger Sherman. He’s on the Utilities Committee and is working on this issue,” said Foster, noting Sherman and others held recent meetings with Boralex representatives to try to find a solution.
If no solution can be found to keep Boralex operating at its current capacity, Foster said the future won’t be a bright one for Fort Fairfield.
“It is going to be devastating for Fort Fairfield,” said Foster. “The real issue in my mind, until there’s the ability for Boralex to market its product, electricity — there’s a flaw in the system.”
“The PUC didn’t do anything wrong. But something has to be done to put protection in the system to prevent cutting out viable businesses,” Foster continued.
Foster said it’s important for officials to look at the whole picture and understand how such decisions can negatively impact Maine’s economy, one community at a time, and that improvements need to be made in various areas, most importantly the state’s infrastructure.
“We need to be on top, know what issues are and be pro-active in solving them,” said Foster. “We need to be active in developing infrastructure” that will help Maine businesses prosper.
According to the company memo, “BFF has been operating for 20 years. It has been proven to be a reliable source of green power (processing wood chips to create electricity) within northern Maine, producing from 30 to 32 MWh on an annual basis.”
The PUC’s decision will also affect Boralex’s Staceyville facility, located in Penobscot County.
According to a report on Portland television station WCSH-6, like BFF, the Staceyville plant, is not connected to the New England power grid and will be without a market for the energy it produces, effective Sunday, March 1. The Staceyville division serves as 51 percent of the community’s tax base, is the only industrial employer in that area and employs 21 individuals. Staceyville’s plant reportedly had a one-year contract to sell power to Chicago-based Integrys, which is scheduled to expire in June.
NB Power’s bid came in 8 percent lower than competing bids, according the television station.
While NB Power will benefit, come Sunday, from the PUC’s recent decisions, the news will negatively affect Quebec-based Boralex on both sides of the border. According to WCSH, Gov. John E. Baldacci is currently working with Boralex to find customers for the energy produced, with hope to keep both facilities operating and prevent the loss of much-needed jobs in both communities.
For more information on Boralex, visit www.boralex.com.