CMP signs landmark power line deal
By Tux Turkel tturkel@mainetoday.com
Staff Writer
Solar panels tied to smart meters could feed electricity into the power grid, low-income residents could get $2.7 million to weatherize homes and a special ombudsman could help landowners resolve power line disputes.
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View a PDF of the settlement agreement between CMP and parties in the PUC transmission caseThese and other measures are included in an innovative settlement agreement being signed today by Central Maine Power Co. and parties involved in the utility’s landmark transmission project case before the Maine Public Utilities Commission.
In exchange for funding energy efficiency programs and making other concessions, CMP could begin work, as early as this summer, on upgrading its aging, high-voltage network that runs 350 miles from Orrington to the New Hampshire border.
The Public Utilities Commission, which must approve the settlement, has set a deliberations meeting for May 14.
Named the Maine Power Reliability Project, the $1.4 billion proposal is considered the largest transmission project ever proposed in Maine. More than 2,000 jobs are being projected over four years. It’s also a major windfall for CMP, which makes money by building and operating transmission lines.
Some opponents, as well as staff experts at the PUC, had recommended scaling back the project and cutting its cost to $1 billion. That idea was mostly rejected in the pending deal. If the settlement is accepted, CMP will get to build much of what it proposed when the case began two years ago. The utility has maintained that the upgrade is needed to assure reliable electric service and serve proposed wind power projects in western and northern Maine.
But CMP’s agreement to fund million of dollars in energy efficiency programs, as well as embracing new technology that can cut peak demand for power use, creates conditions to control rates in the years ahead, according to Richard Davies, the state’s Public Advocate and a key party in the case.
“In the future, building new transmission won’t be the answer to all our problems,” Davies said.
CMP issued a release Friday afternoon saying the project would ensure reliability for years to come, encourage renewable energy development and and allow for a quick start for construction.
“The parties to the stipulation (agreement) believe that approval by the MPUC will provide substantial and lasting benefits to Maine,” the company said.
Because transmission project costs are shared throughout New England, Maine customers would pay 8 percent of the bill
The negotiated settlement was signed in Augusta by CMP and roughly two dozen parties that included state officials, utilities, contractors, power generators and even a local birding club.
The settlement does scale down some aspects of the original plan. Transmission upgrades in the Rockland and Lewiston areas are eliminated, as well as some equipment planned for the Cumberland/Yarmouth area.
The parties also agree to help develop a power grid that uses sophisticated meters and communications systems to monitor electric use and manage it with strategically-placed solar arrays, other local generators and real-time conservation actions. This approach is known as smart grid technology.
CMP has agreed to work with Portland-based Grid Solar on two pilot projects, one in the Portland area; the other in the Midcoast. Grid Solar is promoting a concept of using solar panels to meet demand spikes on hot days. The solar output would be backed up with other forms of generation and “demand response,” such as factories shutting down unneeded equipment or homes automatically turning off air conditioners.
CMP’s project drew opposition from many residents living near the power corridor. As part of the settlement, CMP agreed to hire an ombudsman to work with landowners during the construction phase. It also agrees to take reasonable steps to limit the output of electromagnetic fields associated with high-voltage lines, consistent with the recommendations of the World Health Organization.
In addition to funding annual low-income weatherization, CMP agreed to pay $2.6 million in 2012, and $500,000 a year for nine years, for efficiency projects at factories and that save the most money per dollar.
An additional $900,000 in 2012, and $700,000 a year for nine years, would go to energy efficiency projects identified by Efficiency Maine Trust.
It also will pay $1.5 million to help the Public Advocate and other parties participate in regional transmission planning.
CMP has agreed not to try to recover any of this spending in customer rates.
The three PUC commissioners will consider the settlement next Friday. They can accept, modify or reject the deal. If they reject it, a formal deliberation on the initial case is set for May 26.
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15 COMMENTS
sandman21 said...
The U.S. jobless rate rose to 9.9% in April, the first increase in three months, but the government’s broader measure of unemployment ticked up for the third month in a row, rising 0.2 percentage point to 17.1%.
May 7, 2010 at 5:39 PM Report abuse
Jack_Pine said...
See what the former PUC commissioner reportedly was up to before going to work for the wind company - the reason for the CMP ripoff. Group asks AG to probe official of First Wind 5/7/10 By Naomi Schalit Senior Reporter Maine Center For Public Interest Reporting http://www.bangordailynews.com/detail/142846.html
May 7, 2010 at 5:44 PM Report abuse
Jack_Pine said...
Population growth for Maine and the entire northeast for the next 20 years is forecast as almost nil. This is all about making ratepayers foot the bill for Baldacci's wind compny friends' needed power lines. Meanwhile Connecticut and others will NOT be buying this electricity, as they are on to the scam slashing their use of renewables: "The original law mandating the 20 percent by 2020 was intended to bring down energy costs while helping the environment. But several committee members said the the bill has not achieved the savings hoped for. Connecticut's electric rates are much higher than the national average. According to a legislative report, electric rates in Connecticut were 50 percent above the national average in 1999, the year before renewable energy purchases were mandated. Last year, electric rates were 80 percent above national rates." http://www.ctmirror.org/story/5217/bill-would-cut-targets-use-renewable-energy
May 7, 2010 at 5:51 PM Report abuse
mr.joshua said...
You said it Jack. Imagine the good that could have been done if Baldacci socialized energy instead of health care. Instead we're being greenwashed into letting utility companies get richer.
May 7, 2010 at 6:26 PM Report abuse
MaineHiker said...
Hay! The British Petroleum disaster, Illinois Green credits for burning tires and the Nantucket Sound Debacle all make perfect sense once you accept that Salazar is a Jihadist.
May 7, 2010 at 8:28 PM Report abuse
MaineHiker said...
Anyone involved in these decisions in any way must be totally open to complete scrutiny. Just taking their shirts off won't be enough.
May 7, 2010 at 8:55 PM Report abuse
MaineHiker said...
http://news.bbc.co.uk/2/hi/americas/8596692.stm
May 7, 2010 at 9:00 PM Report abuse
MaineHiker said...
http://www.youtube.com/watch?v=E6m1qgnUw74&feature=related
May 7, 2010 at 9:22 PM Report abuse
MaineHiker said...
http://www.youtube.com/watch?v=E6m1qgnUw74&feature=related
May 7, 2010 at 9:22 PM Report abuse
KarenPease said...
I believe it is foolish and ultimately very costly to proceed with this transmission upgrade. In a very short while, land-based wind energy will be completely 'outted' and the citizens of Maine will realize what a mistake it is to desecrate our natural resources for an unreliable, economically unfeasible, and ecologically damaging proposal. This is all about the money. That's the bottom line. Educators and industrial wind opponents need to continue to inform the public and provide factual information so that the people of Maine can stand up, speak up, and put their collective feet down. It is still within our power to say "NO!" We need to say it, and say it now. To build this massive infrastruture for an energy source which is doomed to failure would be a travesty for the people, the land and the state of Maine. I'm proud to stand up and do what's right. Not in my backyard! Not in anyone's! www.highlandmts.org
May 7, 2010 at 9:33 PM Report abuse
SM_of_Durham said...
Maine customers would pay 8 percent of the bill and It also will pay $1.5 million to help the Public Advocate and other parties participate in regional transmission planning. CMP has agreed not to try to recover any of this spending in customer rates. SAYS IT ALL.
May 8, 2010 at 5:52 AM Report abuse
qwenky said...
Large Wind projects are given a green light here, greased by Kurt Adams and First Wind. AG must investigate this hugh scamming of tax dollars in Maine . If AG Mills is in bed with them all , a possibility, then contact:Special Agent in-Charge Warren T. Bamford Federal Bureau of Investigation Boston Field Office One Center Plaza, Suite 600 Boston, MA 02108 Phone: (617) 742-5533 Fax: (617) 223-6327 E-mail: Boston@ic.fbi.gov "Public corruption is one of the FBI’s top investigative priorities—behind only terrorism, espionage, and cyber crimes.
May 8, 2010 at 8:31 AM Report abuse
GrampaWing said...
CMP's power grid was last updated in the 70's. CMP is regulated by the PUC, so it's profit's are regulated. Improving the grid will create a stable electrical system, create more jobs, (outside of CMP) and promote new companies to come to Maine. Windmill Farms are a reliable energy source for the future. They also create good jobs. Have you ever visited one of the working windfarms?
May 8, 2010 at 1:27 PM Report abuse
windblock said...
Grampa...you haven't been paying attention. Watch "Smartest Guys In the Room" and get an idea how the energy scammers think. It applies to Maine. Who needs 10 buck an hour jobs for flagging, the only jobs for locals? I could run a crane for Reed and Reed but I would not work on projects which are so devastating or for a company who doesn't care about the environment. CMP wants higher electric rates for us Mainers. How do they propose to lessen EMFs? That must be proprietary info like their Stetson output. Windsprawl is a scam and it will continue with people just plain unwilling to accept that our elected officials have been hoodwinked and lied to by the wind industry or are a part of the scam.
May 8, 2010 at 9:54 PM Report abuse
qwenky said...
It is all about te Wind Scam, and nothing else! "There is growing recognition in state policy and statute of the need to move toward indigenous renewable resources and likely increased electrification, in order to move beyond our reliance on domestic and foreign fossil fuel," said Commission Chairwoman Sharon Reishus."There is growing recognition in state policy and statute of the need to move toward indigenous renewable resources and likely increased electrification, in order to move beyond our reliance on domestic and foreign fossil fuel," said Commission Chairwoman Sharon Reishus. SCAM!
May 16, 2010 at 7:41 AM Report abuse