You’ve probably seen the desk sign before: “Your failure to plan doesn’t constitute our crisis.”
That’s the message Maine needs to send to the Federal Energy Regulatory Commission, which recently ruled that Maine consumers should pay an additional $300 million over the next four years to some of the nation’s largest power companies.
Then, on Wednesday, the New England power grid to which Maine belongs announced another $20 million transmission fee hike, effective July 1.
“At a time when Maine’s economy is struggling to get ahead, said Kurt Adams, Chairman of the Maine Public Utilities Commission, “this rate hike is simply astonishing.”
He’s right.
Maine ratepayers are basically being told to help pay for a shortage of generating capacity in southwestern Connecticut and northeastern Massachusetts, even though Maine has power to spare.
FERC’s action will result in rate increases of about 6 percent for Maine’s residential consumers and about 10 percent for commercial and industrial consumers.
FERC’s goal is to head off a looming generating capacity shortage. The FERC ruling sets up a system for power companies to bid on the right to build new plants and supply electricity to companies that distribute the power, like Central Maine Power.
However, Maine is already a net exporter of power with twice as much capacity as the state consumes.
FERC would like to spread the cost among all of the region’s ratepayers. Clearly, Maine has little to gain in the deal and a lot to lose.
Electric rates here are already a burden for consumers. But the higher rates are a severe competitive disadvantage for the state’s manufacturing industries, especially those like paper mills that use large quantities of power.
Maine lawmakers early last year approved legislation directing the Public Utilities Commission to study whether Maine should remain in the New England Power Pool, also known as the ISO, or Independent System Operator, for this region.
Gov. John Baldacci had previously directed the state’s Utilities Commission to study alternatives, including establishing another regional group that could even include Canadian provinces.
We hope FERC will address Maine’s concerns with the ruling. If not, we need to have a full understanding of the alternatives and be ready to act.
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