The BDN Opinion section operates independently and does not set news policies or contribute to reporting or editing articles elsewhere in the newspaper or on bangordailynews.com.
Doug Mulvey is a vice president of LS Power.
We respect the Maine Public Utilities Commission decision to re-issue a procurement for the Northern Maine Renewable Energy Development Program and we look forward to helping unlock the clean energy potential of Aroostook County to benefit Maine consumers.
LS Power filed a response to the commission’s December order to provide important context to the public. Our commitment to the project’s terms was based on a timely and predictable procurement process, and the unanticipated changes — namely the delayed inclusion of Massachusetts and the novel procurement process that added uncertainty and risk — have significantly impacted the project’s feasibility in its current form.
Across the country, LS Power has followed through on every commitment it has made to build new transmission infrastructure and has successfully funded every project it has brought to the financing community. Our hope is the Aroostook project will move forward with a new procurement that includes the suggested modifications suggested here, as we are confident the project will provide meaningful benefits to the state of Maine for years to come.
A new transmission line is essential to deliver 1,200 MW of affordable, Maine-made renewable energy to the New England power grid. The Northern Maine Renewable Energy Development Program is critical to achieving the Maine Energy Plan: Pathway to 2040, which envisions unlocking substantial renewable energy sources to provide clean power for the state’s electric grid. The program also supports enhanced grid reliability, reduced electricity bills, job creation, substantial local tax revenue, and support for beneficial electrification that will reduce carbon emissions.
LS Power has substantial experience in project development and investment, totaling more than $50 billion in energy infrastructure across the nation, including six large-scale, complex transmission projects. Our journey with the Northern Maine program has deepened our experience with invaluable lessons learned. We remain committed to Maine and share our insights from those lessons in hopes of helping Maine move forward towards a cleaner energy future.
The Northern Maine Renewable Energy Development Program is vital for Maine’s economic growth, for achieving its decarbonization goals and for delivering electricity cost savings to Maine ratepayers. To see the successful construction of new transmission infrastructure, we respectfully urge the commission to consider the following:
The distinct nature of funding transmission infrastructure versus generation infrastructure
The need for the request-for-proposals (RFPs) to include a form of contract with terms and conditions that support the investment
The importance of addressing multi-state involvement in the procurement process
We believe these elements will provide certainty to all prospective bidders, help ensure that legislative goals are met and that competitive benefits are provided for ratepayers.
We applaud the commissioners’ statement on Jan. 3, before the Maine Legislature Committee on Energy, Utilities and Technology, indicating a plan to rebid the project with clearer contracting terms and improved coordination. We echo the necessity for such certainty and coordination to ensure the project’s contract terms support the investment, thereby enabling the delivery of cost-effective, clean energy to Maine’s residents. In addition, to create a buildable and financeable project we believe it is crucial that the contract terms are consistent with those found in standard utility and competitive transmission contracts nationwide.
LS Power recognizes the importance of collaborating with communities to hear from landowners and concerned citizens on our plans and understand their concerns. We conducted open houses and feedback sessions along the planned route, resulting in more than 1,000 comments that reflected a wide range of perspectives. Our objective was to determine the most suitable route for the project, ensuring it aligns with Mainers’ best interests. These findings can be used to inform the project’s best route should it go forward.
LS Power values the input and support from project stakeholders and is dedicated to utilizing our deep expertise to further improve the project. Together, we can work to ensure the Northern Maine Renewable Energy Development Program becomes a successful model for renewable energy development in Maine and beyond. We look forward to continuing our collaboration with the Maine Legislature, the Public Utilities Commission, and all stakeholders to make this vision a reality.