LePage’s meddling in energy contracts fits dangerous pattern

http://bangordailynews.com/2015/02/20/the-point/lepages-meddling-in-energy-contracts-fits-dangerous-pattern/

For the second time in two years, Gov. Paul LePage is interfering with energy contracts. This time, he has pushed the Maine Public Utilities Commission to reopen the bidding process for two long-term contracts the PUC already approved and is in the process of finalizing.

LePage may have valid concerns the PUC has too much authority to enter into long-term power agreements, but reopening the bidding process just weeks after contracts were finalized sets a dangerous precedent and adds regulatory uncertainty that could drive needed investment away from the state.

In 2006, the Legislature gave the PUC the authority to order transmission and distribution utilities, such as Central Maine Power Co. and Emera Maine, to enter into long-term contracts with electricity generators as a way to hedge against electricity price volatility and encourage renewable energy development. Contracts have been struck with wind energy companies and the Verso paper mill in Bucksport for a biomass project.

Last month, the PUC approved long-term contracts with two wind energy projects to provide electricity to Maine’s power grid. Under an order the PUC approved on Feb. 6, a proposed wind project in Hancock County, Weaver Wind, essentially would sell power to CMP and Emera for 5.3 cents per kilowatt hour for 25 years and the other, Highland Wind in Somerset County, would sell its power for 4.7 cents per kilowatt hour for 20 years. Neither project has yet been built.

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