PUC's experts call CMP upgrade too big
Commissioners now will decide how much of the electric utility's $1.5 billion rebuilding plan to OK.
By Tux Turkel tturkel@mainetoday.com
Staff Writer
Central Maine Power Co. should be allowed to upgrade the core of its high-voltage transmission system from the Bangor area to the New Hampshire border, but not various spurs around the state, experts at the Public Utilities Commission are recommending in a much-anticipated report.
TO READ THE EXAMINER'S REPORT
To read a redacted version of the examiner's report, go to the PUC website and type in 2008255 in the Case ID field.
The scaled-back approach could cut the project's cost from $1.5 billion to $1 billion, saving ratepayers money while maintaining reliable electric service and accommodating development of renewable energy, the report says.
Reliability could be provided by alternatives to some new facilities, the report says, such as smart-grid technologies and perhaps the solar panel concept being promoted by Portland-based Grid Solar.
Those and other recommendations are in the report made available over the weekend by PUC lawyers overseeing CMP's case. The so-called hearing examiners' report serves as an in-house opinion to help the three commissioners decide whether to approve CMP's project as requested.
The commissioners aren't bound by the recommendations, compiled by Charles Cohen and Lisa Fink, the two hearing examiners. But their 145-page report does distill the staff's thinking about a case that has dragged on for nearly two years and amassed many thousands of pages of testimony, maps and data.
Parties in the case have until May 7 to file comments. The commissioners are scheduled to deliberate the case May 25.
CMP wants to start work this summer. The utility declined Monday to discuss details of the case, but issued a statement noting that the report acknowledges substantial upgrades are needed. It also warned of further delays and the possible loss of favorable rates for customers, unless the full project is built.
The state official representing consumers in the case had a differing view. The recommendations may provide the framework for a good compromise, said Richard Davies, the state's public advocate.
"It would save ratepayers $40 million while still providing reliability for our electric system," Davies said Monday.
The recommendations also won initial support from the Conservation Law Foundation. Offsetting new power lines with clean energy generated in Maine seems like a responsible balance, said Greg Cunningham, an attorney with the group.
CMP's Maine Power Reliability Project is the largest transmission project ever proposed in Maine, and perhaps New England.
CMP wants to upgrade the aging network that runs 350 miles from Orrington to the New Hampshire border. Failure to move ahead soon will cost Maine jobs and money, and make the state more vulnerable to blackouts, the utility says.
Thousands of workers would be needed for the project, and that has led the construction industry, civic leaders and Gov. John Baldacci to lobby for it.
But the scale and scope have made the plan controversial. There are 182 formal intervenors, including environmental groups and residents who live near the corridor.
CMP wants to build a new set of 345-kilovolt towers, like the large metal structures visible from Interstate 95 and other roads. It also wants to rebuild many miles of power lines and add substations, transformers and other equipment.
The project's size is based on CMP's projections for electricity demand and the power plants available to provide it.
In making their recommendations, the PUC hearing examiners rejected many of those assumptions as unrealistic, too stringent and too expensive.
They relied on consultants and other technical experts, who challenged forecasts and design standards used by CMP and ISO-New England, the regional grid's operator.
The cost of transmission projects in the region is shared by ratepayers in six states. The hearing examiners said transmission investment grew from $1.8 billion in 1999 to $5 billion in 2008. It's expected to reach $8.6 billion in 2013.
"Accordingly," they wrote, "the rates paid by Maine consumers for regionally funded transmission have increased several hundred percent in recent years."
To cut costs while meeting future power needs, the report suggests rebuilding the system's high-voltage "backbone," but holding off on various proposed spurs, including new lines and towers through areas that include Camden-Rockland, Lewiston and Yarmouth.
Proposed upgrades into western Maine, where new wind power projects are proposed, need further study.
Reliability could be improved in some areas, including South Portland and the midcoast, with alternatives that reduce power use, such as energy efficiency.
Smart-grid technology, such as Grid Solar's concept of using solar electric panels to meet demand spikes on hot days, could also play a role, the report says.
The hearing examiners stopped short of recommending Grid Solar. They said the concept needs further development and testing, and said CMP should study a pilot plan for alternatives.
Rich Silkman, a principal in Grid Solar, said Monday he was encouraged that the staff saw the merits of non-transmission alternatives, but disappointed that CMP was assigned to identify the options.
"That, for me, was fundamentally wrong," he said. "CMP has no incentive to do that."
Silkman and other parties in the case have been trying to negotiate an outside deal with CMP. Details of the talks are confidential, but participants say a settlement could reduce the risk of a legal appeal in the hotly contested case.
The examiners' report is likely to influence those efforts, which are continuing this week.
If the recommendations in the examiner's report are adopted by the PUC and acceptable to CMP and intervenors, the compromise also will have to be supported by ISO-New England for regional cost-sharing.
Staff Writer Tux Turkel can be contacted at 791-6462 or at: tturkel@pressherald.com
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24 COMMENTS
Jack_Pine said...
Even though Baldacci "sold" this to the people as needed so our 40 year old lines don't cause blackouts, that was a cheap scare tactic and not the reason he wants this. The reason and ONLY reason for this wholly unnecessary upgrade is that his friends in the struggling wind industry can't sell their electricity without new lines to handle their spurting unreliable power. That is it, plain and simple. Wind is already high priced electricity, so combine that with unnecessary transmission costs passed on to ratepayers and this will hurt our people and businesses and longterm cost us jobs, just as our high taxes do. In view of the potentially huge PUC scandal that began to break last week, three words are in order - Not So Fast. If you haven’t read about it, see: http://www.bangordailynews.com/detail/141729.html
April 27, 2010 at 1:41 AM Report abuse
Jack_Pine said...
For anyone who has not read about the scandal that began breaking last week, it involved former PUC commissioner Kurt Adams, accepted ownership interest in the largest wind company in Maine, First Wind, while he was still with the PUC, before going to work for them. During his three years as PUC commissioner, he worked hard to make things as easy as possible for wind in Maine. The largest obstacle facing wind is it always requires massive transmission which the wind companies cannot afford, so they have to get PUC's to approve making the ratepayer pay for this business expense of theirs. It is a disgrace. And it happens on top of the millions they collect in annual subsidies from taxpayers for each wind “farm”, which overall, produce very little electricity. But the subsidies and carbon credits allow the wind company to make a fortune regardless. Adams was hired as “Director of Transmission”. In other words, he got his 1.3 million a year to ram this expense down ratepayers’ throats.
April 27, 2010 at 1:55 AM Report abuse
Jack_Pine said...
From the Bangor Daily News on 4/22: Construction of transmission lines with the capacity to connect wind energy from Maine’s rural reaches to densely populated regions to the south can happen only with PUC approval. And that’s a matter of crucial importance to First Wind, which makes clear in its 2008 press release announcing Adams’ hiring that it valued his PUC experience as a way to get the company what it needs. ************* http://www.bangordailynews.com/detail/141729.html
April 27, 2010 at 2:05 AM Report abuse
macmac said...
"Not So Fast" is the imperative approach. Maine is presently in the position of generating more electricity than it uses and this capability will exist until 2017. Maine produces with 50% renewables without wind. Many questions need to be answered and we have the luxury of time to do so. We should prepare Maine for an energy future based on studying all available options. Should Maine continue to be a member of ISO-NE ? Should Maine explore Canadian power alternatives? It is obvious the goals set in the expedited wind law can not be met. This law should be repealed and currently stands in the way to better, comprehensive approaches. The politically created emergency does not exist and wind derived electricity will never be the answer to replacing heating oil and gasoline. It couldn't be said any better; " Not So Fast "
April 27, 2010 at 4:10 AM Report abuse
snowgo said...
Jack Pine & macmac, so true! Canada now has a huge hydro dam which could provide clean energy for Maine 24/7/365, in addition to our own clean energy generation. Yes, we already produce more electricity than this state uses! Let's put our resources to better use (better than installing wind turbines) and insulate the houses in this state. This would be the smartest use of any gov't money that would have been used to subsidize wind turbines.
April 27, 2010 at 6:40 AM Report abuse
windblock said...
Is the PUC loaded with windsprawl supporters like LURC and the DEP? Can we expect the ratepayers to get screwed again? Maine should not even be in ISO NE, and HydroQuebec should be allowed to compete. Free market anyone? I am offended and disgusted that the Governor cites windsprawl as the solution for everything from teen pregnancy to poor gas milage when anyone can get the facts in short order. Windsprawl and the unnecessary upgrades are wasteful. Maine deserves lower rates and our beautiful scenery kept intact. Stop bailing out crooks with our tax dollars and stop encouraging Enronesque schemes. The rolling blacklouts in Cal. were contrived by the Enron traders. Why set up Maine so the traders can repeat their scamming? Smarten up Augusta.
April 27, 2010 at 7:26 AM Report abuse
Arthur said...
The two primary factors for "load growth" (demand for electricity) are growth in Income and Population. According to the US Census Bureau http://www.census.gov/population/www/projections/projectionsagesex.html, Maine's population growth through 2030 is projected to grow by only 4% between now and then. That's not annually - that's the total over 20 years. The nation is forecast to grow by 17.7% during the same 20 year period. New England is only projected at 6% and the Middle Atlantic at 2.4%. Windmills create power unpredictably. They are like a truck that travels out of control both in speed and direction. You need to build a 10-lane highway to accommodate such a truck. Silly. This power line upgrade is just as silly.
April 27, 2010 at 7:26 AM Report abuse
Arthur said...
At almost 16 cents per kWh Maine pays the 6th highest electric rates in the country. When it comes to how we generate electricity, we have the cleanest renewables portfolio in the nation. States like Iowa and West Virginia pay 6 or 7 cents, in part because they are so reliant upon coal to generate power. Economic developers rate utility costs as very important. So the jobs go to those states, and we get the foul air from them. But all our politicians think this is just fine. Baldacci's legacy will be that he tried to force windmills and their power lines upon us, despite how useless, environmentally damaging, and expensive it all is.
April 27, 2010 at 7:35 AM Report abuse
qwenky said...
Now is appears Banks(Goldman Sachs) are bailing out First Wind by giving them upfront money instead of letting the market price their stock. WIND is a farce. First Wind , Kurt Adams, Angus King, Bayroot need investigation , and now . This corrupt Baldacci administration is dripping with corruption and misrepresentation. Now they expect the Maine ratepayor to buld unnessary transmission lines for them as well. The publics pockets and businesses in Maine are getting raped.
April 27, 2010 at 8:54 AM Report abuse
Hipupchuck said...
That's why Maine is always a day late and a dollar short and never moves ahead. Every project is downsized and watered down. Now you know why business is not attracted to come here. Maine has a half baked idea of half ass ideas for half measure projects.
April 27, 2010 at 8:58 AM Report abuse
Iwatch said...
These readers are smart. Goldman Sach's is a huge investor in the "green energy" snafu. Also where were these genius PUC members when they so stupidly allowed Fairpoint to buy out Verizon. Nothing but trouble since for their lack of funds. This should never have been allowed.
April 27, 2010 at 9:16 AM Report abuse
LordNelson said...
Nice work Jack_Pine...way to expose these fraudulent "public servants" for the true "rent seekers" that they are. Rent seeking is an economic concept I suggest people read up on. We live it everyday now here in America...while besmirching the good name of true capitalism...we should actually try it instead of this government corporitist, make believe free-market stuff.
April 27, 2010 at 9:30 AM Report abuse
LordNelson said...
If Golden Slacks is involved in this....I suggest reading the prosepctus VERY CAREFULLY!
April 27, 2010 at 9:32 AM Report abuse
lordpeter said...
CMP does not need this upgrade. Look at the back of your green envelope the next time you get your CMP bill. All the transmission lines are maintained religiously and by very strict guidelines. CMP also is firing all of their meter readers so they can get smart meters that they say will save us money. NOT TRUE!. I called CMP and asked about the smart meters - they are not time-of-use meters, which would save us money, they just are meters that would be able to be read without an actual meter reader. JOBS LOST!! I suggest this paper do us a favor and report on that.
April 27, 2010 at 10:25 AM Report abuse
ThorEau said...
Before the PUC commits $1 billion (and it could get much higher) of ratepayers' hard earned money to this completely unneeded corporate welfare, they need to take a hard look at what is happening with big wind in Maine. And that is that wherever it goes, it has a huge fight on its hands and every week just about, another town buys time for itself with a MORATORIUM so that it can study wind. Virtually every town that has studied wind as such creates an ordinance so that the 400' tall turbines cannot be emplaced a few hindred feet from people's homes. The result is that the Governor's wind power goals just ain't going to happen. That said, the billions of scandalous transmission expense are all the more foolish, as their true raison d'etre, providing a delivery mechanism for wind out of state for the corporate subsidy trough hogs like First Wind and Angus King's company no longer exists to the degree the pols hoped it would at the outset. Check your assumptions. They've changed.
April 27, 2010 at 10:41 AM Report abuse
Jack_Pine said...
The PUC and all citizens concerned about transmission need to start raptly following the breaking story involving Baldacci's former chief counsel and PUC commissioner Kurt Adams, who is reported to have received mega amounts of stock options in a wind company while he was still PUC commissioner. When this is thoroughly investigated, it could well be that "Orange is the new green".Governor, can you paint a second lobster on my license plate please? ***** http://www.bangordailynews.com/detail/141729.html ***** Meanwhile, on network TV Sunday night, the Simpsons did an all out mocking of wind power. When the late night comics and Simpsons go after you, your days are numbered. Thank you Homer. Watch the Simpsons wind power video at:***** http://www.windtaskforce.org/video/the-simpsons-discover-wind
April 27, 2010 at 10:53 AM Report abuse
lordpeter said...
Good points, Jack_Pine! I have wondered why the Connor owned papers are not reporting the Kurt Adams story. This story is HUGE and has tremendous possibility of becoming another story like Watergate. Corruption and malfeasance in our government should never be covered up by non-reporting. Windgate? Possibly. But we will have to read about it in the Bangor paper.
April 27, 2010 at 11:15 AM Report abuse
Paul_H said...
While the anti-wind sentiment seemed genuine at first, these multiple posts from the same commenter make it look as though some folks have an axe to grind. Seriously, nobody in the comments so far have addressed the issue in the article. I see a major disconnect (pun intended) between the need to upgrade transmission lines and the population level in Maine. It's good that the PUC has finally opened their eyes to other options.
April 27, 2010 at 11:20 AM Report abuse
Arthur said...
Paul H: Everyone in Maine should be grinding this ax. The connection is clear that the overcapacity of transmission is proposed to accomodate the Tasmanian Devil of electricity: windmills. At the time of CMP's application, Baldacci had everyone convinced that carpetbombing Maine's hills with turbines was such a good idea, we'll set a goal to erect 1800 of them. Then we woke up to the fact that these sputtering windmills are unaffordable, unnecessary, unfriendly, unsustainable, uncontrollable...you name it. Those 1800 turbines would provide less than 5% of the grid's power, increasing rates, while selling off and blowing up hundreds of Maine mountains. Bad bad deal.
April 27, 2010 at 12:28 PM Report abuse
qwenky said...
THE GRAND SCHEME!!!! (Disprove me please) IBERDROLA(CMP)is now trying to get Maine citizens to fund their foreign GENERATION plans as well, enabling them in the future to get into the generation of power here cheaply(in MAINE) as well as the transmission part they are in now.. And , THEY WANT YOUR TAX DOLLAR TO BUY THE LINES FOR THEM. When legislation is pushed to combine the generators and the transmission lines of power in Maine(to again regulate), IBERDROLA RULES, more US capital gets siphoned overseas. When First Wind and other Wind Hedge Company scams sell their assets(our tax dollars) to them , they win it all. With your money buying the unnessessary transmission lines , FOR THEM! Then, SPAIN RULES MAINE!
April 27, 2010 at 1:42 PM Report abuse
LordNelson said...
"In economics, rent seeking occurs when an individual, organization or firm seeks to earn income by capturing economic rent through manipulation or exploitation of the economic or political environment, rather than by earning profits through economic transactions and the production of added wealth." I expected to see a map of Maine under this entry?
April 27, 2010 at 1:57 PM Report abuse
netcaster said...
There is every reason not to add more to the financial burden of Mainers and the widening of the line will do just that. If you are believing all you hear on the benefits of Wind and the need for the upgrade you have not really investigated the issues. The objective isn't electric power for Mainers or green energy or jobs. The objective is money for the companies involved, gained from Stimulus $ which WE will pay for and the jobs are slight after initial construction of turbines and widening of lines. As to green, The turbines aren't green, they use oil to keep at speed they need, they clearcut huge areas for each and all pathways needed to construct. THe widening does the same. Less trees less green unless you mean $. None of this helps Maine. Widening brings Company heads(CMP is Iberdrola, a Spanish Company) money from other States. It will not filter down to us. We will lose tourism (the beauty is the reason they come). Maine is being sold out. Please look into this for truth.
April 27, 2010 at 4:20 PM Report abuse
netcaster said...
There is every reason not to add more to the financial burden of Mainers and the widening of the line will do just that. If you are believing all you hear on the benefits of Wind and the need for the upgrade you have not really investigated the issues. The objective isn't electric power for Mainers or green energy or jobs. The objective is money for the companies involved, gained from Stimulus $ which WE will pay for and the jobs are slight after initial construction of turbines and widening of lines. As to green, The turbines aren't green, they use oil to keep at speed they need, they clearcut huge areas for each and all pathways needed to construct. THe widening does the same. Less trees less green unless you mean $. None of this helps Maine. Widening brings Company heads(CMP is Iberdrola, a Spanish Company) money from other States. It will not filter down to us. We will lose tourism (the beauty is the reason they come). Maine is being sold out. Please look into this for truth.
April 27, 2010 at 4:20 PM Report abuse
Blueyes1119 said...
Upgrades to our existing Maine grid to better service our local needs should be an on-going function of CMP's business plan. Consistent upgrades should ensure reliable delivery of electricity for decades to come without adding huge transmission capacity. CMP is owned by utility giant Iberdrola of Spain. CMP makes its money by transmitting electricity. Iberdrola is the world’s second largest operator of utility scale (industrial) wind sites. Iberdrola will make millions of dollars at taxpayers’ and ratepayers’ expense if the transmission lines are expanded. Expansion of transmission lines does nothing positive for Maine but will wreak havoc with our quality of place and threaten our health and well being. Any way you look at it, the wind sites are the reason for the huge, health menacing transmission line expansion and without the powerline expansion, the sprawling industrial wind sites never get built! Maine needs neither industrial winds sites nor huge new powerlines.
April 27, 2010 at 10:57 PM Report abuse