Rep. Jeff Hanley (R- Pittston) sponsored LD 1027 (co-sponsors) and testified before The Energy Utilities and Technology Committee that the rules were set up to promote growth of renewables and that growth has been achieved. Therefore, and because it’s a renewable energy, we should now allow large-scale hydro-electric facilities to qualify for the state’s Renewable Portfolio Standard.
Maine’s Renewable Portfolio Standard (RPS) requires that electricity providers meet two goals. The first, that 10% of what’s sold to Maine customers come from “new renewable resources”(installed after September 1, 2005). The second, that 30% of the electricity sold comes from either renewable resources or are meeting strict efficiency standards. Additionally, facilities producing more than 100 Mega-Watts (MW) don’t qualify under Maine’s RPS. Wind turbine installations are exempt from the 100 MW cap and if LD 1027 passes, hydro-electric would be as well.
Currently, electricity producers receive credits describing how much energy they’ve fed the power grid, how it was produced, whether renewables were used, etc. Energy producers then sell those credits to energy providers. These credits allow energy providers to sell electricity and prove to the MPUC that they’re meeting the state’s renewable requirements. As a result, energy providers pay a premium for credits confirming renewables.
Those testifying against the bill saw this as only benefiting QuebecHydro since they’re the only ones near Maine with hydro-electric facilitates over 100 MW and there are no plans to build one anywhere in New England.
Many, including Patrick Strauch from the Maine Forest Products Council, spoke in defense of Maine’s biomass sector, arguing that allowing large-scale hydro-electric to produce & sell renewable energy credits would crash Maine’s renewable energy market. Maine facilities that made significant investments, that pay state taxes and create rural Maine jobs, would loose millions. Millions that circulate throughout the state would be funneled directly to a foreign entity with no tax burden to Maine.
Dan Dora from the Professional Logging Contractors of Maine, cited a Public Advocate analysis showing recent reductions in generation costs are being replaced by rising transmission costs. Dora then questioned how adding a source requiring significant transmission investment was going to lower electricity costs for Mainers.
Some, including Sargent Corporation’s Chip Laite, questioned why a large corporation receiving subsidies from its own government, should receive benefit from Maine’s renewable incentives, especially when they’re already pursuing the New England grid without it.
Adding to Laite’s point, Jeremy Payne from the Maine Renewable Energy Association, added that QuebecHydro has 19 facilities under 100 MW that, if they ever cared to apply, would qualify for Maine’s RPS. Payne added that if Quebec’s hydro-electric is as cheap as promoted, then there’s no reason they can’t compete for the 60% of Maine’s electric load not requiring renewable energy credits.
Paulina Collins from the MPUC and Barry Hobbins from the Office of the Public Advocate took no official stance on LD 1027 but believed the bill would lower electricity costs to Mainers. However, while they didn’t doubt the harm to local renewable production, they didn’t see protection and growth of local renewable energy as a priority for Maine’s RPS, a point contested by nearly every other speaker.
A committee vote after the March 28th work session was not unanimous and a divided report is expected for the legislature at this time. This is the 6th time in 5 years that a bill has attempted to remove the 100MW cap on hydro-electric and this is the first time the committee wasn’t unanimous in not wanting it passed.
-TMP