Regulators Squash Plans For “Clean” Energy!?

Maine’s energy regulators are scrapping a developer’s plan to construct a wind transmission line in Aroostook County and are seeking fresh bids due to uncertainties about the project’s cost.

The chair of the Maine Public Utilities Commission, Phil Bartlett, announced during a short hearing that “significant differences” had arisen in negotiations with LS Power, the New York-based company behind the project. LS Power aimed to build a transmission line connecting southern Aroostook County to a new substation near Windsor. This line would link the New England grid to the King Pine Wind project, which boasts over 170 turbines and is set to become the largest onshore wind farm in the eastern United States. It could power approximately 450,000 homes.

Two commissioners supported the decision to request new bids, which is expected to cause delays in the project. The dispute over pricing is significant, as a project supporter claimed that the wind power would cost 5 to 6 cents per kilowatt-hour, half the current standard rate.

Bartlett expressed concern that LS Power could no longer maintain its initial price and had not provided a binding price in its proposal, which he deemed unfair to previous bidders.

Commissioner Patrick Scully agreed, stating that LS Power’s plan would shift a substantial amount of risk to ratepayers, contradicting a previously approved project “term sheet.”

LS Power expressed disappointment with the commission’s decision but remained open to collaboration, citing the need for improvements in contract provisions known to all bidders upfront.

The project initially gained approval from the commission in 2022, with the Legislature and Governor Janet Mills also supporting it. However, recent negotiations over purchase and transmission service agreements, as well as opposition from municipalities along the potential route, complicated the project.

The utilities commission selected LS Power in separate bids due to their cost-effectiveness and experience, but uncertainty surrounding the project’s total cost, which was initially estimated at $1.7 billion over 30 years, led to the current situation.

Governor Janet Mills’ energy office is committed to exploring new clean energy options and intends to evaluate the project’s future in collaboration with partners. Their goal is to stabilize energy costs, reduce reliance on fossil fuels, and promote job creation and investment in Maine.

Reimagined By Aibo T.

DISCLAIMER: Author is under many pen names. This article was rewritten based on these links: Maine regulators kill developer’s plans for Aroostook wind line (bangordailynews.com)

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