Energy News Roundup: August 6-August 12

This week in regional energy news …

• The Loring Development Authority in Limestone, Maine, is embarking on an expansion project that includes the installation of new sources of cleaner power, and the removal of old ones, including an implosion of an old heat plant tomorrow.
• In rural Nova Scotia, LST Energy considers hay as a possible new renewable biofuel.
• A legislative report on the Maine Green Energy Alliance finds no fault with the group’s spending or hiring, but a senator says the report itself may have been leaked improperly.
• Construction of the Northern Pass, a transmission project that will run power from Hydro-Quebec into New England through New Hampshire, will begin in 2014.
• The Blue Ribbon Commission on America’s Nuclear Future is advocating that the U.S. DOE remove nuclear waste from Connecticut, and other states, posthaste.  Connecticut has 1,350 metric tons of spent uranium in Waterford and another 412 metric tons in Haddam.

Maine Energy Bill Moves Out of Committee

Last Wednesday, the Maine Legislature’s Energy, Utilities and Technology Committee held a Work Session for LD 1570.  The much talked about Governor’s bill has gained attention of the media and renewable generators. 

The most controversial aspect of the bill has been the proposed freeze in the scheduled increase in the renewable portfolio standard for “new” renewable generation (e.g. solar, wind, hydro).  LePage Administration officials had claimed that this change would save Maine ratepayers $42 million over the next six years.  Renewable generators questioned those calculations and warned that such a move would seriously jeopardize future investment in new renewable generation in Maine.  For example, Verso Paper addressed the Committee by highlighting its current $43 million investment in a bio-mass generator.  Verso was clear that the proposed freeze in the Class 1 RPS would jeopardize its project.  Ultimately, the Committee worked out a compromise.  The final version of the amended bill does away with the proposed freeze, but directs the Maine PUC to study the portfolio standard and report back to the Legislature.

Also, while the original version of the amendment included a proposed section that would have set the alternative compliance payment rate at 150% of the average market price for the most recent year which data was available, the amendment now requires the MPUC to study the ACM and recommend to the Committee an appropriate ACM mechanism.

LD 1570 also called for the MPUC to adopt rules that place certain requirements on long term contracts signed by T&D utilities. This rulemaking requirement was retained.   The MPUC will be prohibited from directing a T&D utility to enter into a long term contract (except for off shore wind and tidal) until the final rules are adopted.

The remainder of the amendment directs the MPUC to complete a report regarding the RPS – source and cost of RECs used, impact of RECs on the regional REC market, the impact of the RPS on the viability of generators in the state, the cost and use of the ACM, etc.  The MPUC will provide the report during the Legislature’s second session. 

Although, the Committee voted unanimously to support the amended version, the debate surrounding these issues will continue during the Legislature’s second session.

Debate Continues on Maine Governor’s Energy Legislation

Active debate continues in the Maine Legislature on a proposal of the LePage Administration to eliminate current requirements that energy sellers include new renewable generation within their portfolio, including new resources such as wind, solar, bio-mass and hydro. Under current law, retail energy sellers must include a certain percentage of so-called “Tier One” resources within their energy mix, which percentage is currently at 4% and would rise by 1% per year until reaching 15% of each provider’s energy sales.  LD 1570, however, would freeze Maine’s renewable portfolio standard at the current 4% for such new renewable.  According to a report in the Portland Press Herald, the change would likely save homeowners 40 cents a month.  However, the Administration rejects those numbers and suggests that the change would save Maine ratepayers $42 million over the next six years. The Maine State Chamber of Commerce has declined to support the Administration’s proposal stating, “Overall, we need to do everything we can to lower electricity costs. But we also have to take into account businesses that benefit from hydro, biomass and wind.”  Many business interests are similarly concerned that the policy designed to lower energy costs will inadvertently stifle investment in Maine’s developing green energy industry. 

Tom Welch Confirmed as Newest Maine PUC Commissioner

Today, the Maine Senate confirmed Tom Welch as commissioner of the Maine PUC.  Welch will take over the seat of Commissioner Jack Cashman, who will vacate the position he has held since 2008. 

Yesterday, the Utilities and Energy Committee unanimously recommended Welch’s confirmation.  Welch previously served as a PUC commissioner from 1993 to 2005.

See our announcement of Governor LePage’s nomination of Tom Welch here.

Energy News Roundup: January 22-January 28

This week in regional energy news …

• The proposed merger of Northeast Utilities and NSTAR is drawing controversy from environmentalists and competitors.
• Standard offer electricity prices will drop for CMP’s and Bangor Hydro’s customers.
• New Hampshire’s regulators have increased incentives for the purchase and installation of residential biomass heating systems.
• Wood Pellets Company and Corinth Wood Pellets, two Maine wood pellets companies, received grants totaling $288,000 this week from the Department of Agriculture’s Bioenergy Program.
• After a party-line vote, Darryl Brown has been confirmed as Maine’s newest Department of Environmental Protection commissioner.
• NB Power asks its customers to curb their energy usage during a cold spell.

Maine Legislature Committee Assignments Announced

The Committee assignments for the 125th Maine Legislature have been announced.  The following legislators will serve on the Joint Standing Committee for Energy, Utilities and Technology:

• Senator Michael D. Thibodeau (R-Waldo), Chair
• Senator Christopher W. Rector (R-Knox)
• Senator Philip L. Bartlett II (D-Cumberland)
• Representative Stacey Allen Fitts (R-Pittsfield), Chair
• Representative James M. Hamper (R-Oxford)
• Representative Dean A. Cray (R-Palmyra)
• Representative Larry C. Dunphy (R-Embden)
• Representative Aaron F. Libby (R-Waterboro)
• Representative Jon Hinck (D-Portland) (Ranking Minority Member)
• Representative Alexander Cornell du Houx (D-Brunswick)
• Representative Roberta B. Beavers (D-South Berwick)
• Representative Mark N. Dion (D-Portland)
• Representative Louis J. Luchini (D-Ellsworth)

The following legislators will serve on the Joint Standing Committee for Environment and Natural Resources:

• Senator Thomas B. Saviello (R-Franklin), Chair
• Senator Roger L. Sherman (R-Aroostook)
• Senator Seth A. Goodall (D-Sagadahoc)
• Representative James M. Hamper (R-Oxford), Chair
• Representative Bernard L. A. Ayotte (R-Caswell)
• Representative Jane S. Knapp (R-Gorham)
• Representative Ricky D. Long (R-Sherman)
• Representative James W. Parker (R-Veazie)
• Representative Robert S. Duchesne (D-Hudson) (Ranking Minority Member)
• Representative Melissa Walsh Innes (D-Yarmouth)
• Representative Joan W. Welsh (D-Rockport)
• Representative Denise Patricia Harlow (D-Portland)
• 1 Vacancy

For a full list of Committee assignments, please click here.