Staff Writer
On March 10, officials with Boralex Inc. announced that they had signed a two-year Power Purchase Agreement for the company’s Fort Fairfield wood-residue thermal power station with New Brunswick Power Generation Corporation (NBP). “[The Boralex plant in Fort Fairfield] generates 33MW and that is what we will purchase,” said Media Relations Manager for NBP, Heather-Anne MacLean. “We were able to work with Boralex to reach an agreement that would benefit all. Having generation in the area is very good for the customers and provides some additional level or reliability,” she added.
“We are pleased that we are able to keep the plant open for the next two years,” said Patricia Lemaire, director of public affairs and communications at Boralex Inc.
Though Boralex achieved its best operation results in its history during 2008 according to company records (revenue from energy sales were up 21 percent to $197.2 million compared to $1.63.3 million in 2007), the Fort Boralex plant ceased power production Feb. 28.
Since March 1, NBP has been providing power for residential, small non-residential and medium-non residential customer classes in the Maine Public Service Company service territory after submitting the lowest bid to the Maine Public Utilities Commission (MPUC) to provide energy for the region.
“It is unfortunate that Maine state law apparently does not allow the PUC to consider the potential impact on employees, their families, and their communities when selecting an electricity provider for Aroostook County,” said Maine Senator Susan Collins.
“By law and by rule, the MPUC must accept the bid which will provide the lowest price for consumers per standard offer of service,” explained Communication Coordinator and Spokesperson for the MPUC, Fred Bever. “In this case, the next lowest bid for standard offer service was 8 percent higher, which would have resulted in extra cost to consumers of $4.4 million to consumers over four years.”
According to Bever, the NBP bids will reduce Standard Offer electricity prices for area consumers by 2 percent.
“For the moment, I am extremely pleased that Boralex in Montreal, Quebec has made the decision to negotiate a contract and open this mill back up; employing our citizens and utilizing the services in this area will all help economic well being,” said Fort Fairfield Town Manager Dan Foster. “[Boralex at Fort Fairfield] pays us $400,000 a year in property taxes; they’re very prompt with their payment and we’re all very pleased when they make it.”
“These are no doubt challenging times for all and we are working to provide electricity at costs that will benefit the people of the region,” MacLean said. “Working with Boralex at Fort Fairfield is a win/win for all involved.”
According to Foster, the plant and its 28 employees will start producing power again at the end of the month.
“Part of what I see in this whole development is the businesses that exist in communities today are normally larger corporations who’s headquarters are in places other than small communities,” said Foster, “I can assure you that as Boralex in Montreal, Quebec thinks about their vision and their plan for the company and its stockholders, the viability and well being of the town of Fort Fairfield is the furthest thing from their minds. If we benefit from the investments that they make, it’s strictly accidental,” he added.
“One of the things that’s the most frustrating in my mind about being on the border is that the majority of the businesses that are willing to invest in Aroostook County are Canadian businesses. They use the border because policies fluctuate between Canada and the U.S. and they use it as leverage to enhance their own businesses,” Foster explained. “We’ve become a pawn in this process; sometimes we benefit, sometimes we don’t. Whether we do or we don’t, it has nothing to do with our efforts or what we’re willing or able to do; none of the decision-makers at these businesses reside in these communities, so the well being of this community is not part of the decisions that they make.”
“I’m not criticizing it as much as I’m recognizing it,” Foster clarified, “and I feel more and more that if Fort Fairfield is going to be successful, it’s going to be up to us that are living here,” he added. “We’re the ones that have to be willing to make the investment in our community because we’re the ones that are the most vested in its well being.”
