Last Tuesday, the Maine Public Utilities Commission issued its final order in Docket No. 2008-156, finding that Maine’s transmission and distribution utilities, Central Maine Power (CMP)* and Bangor Hydro, should automatically renew their participation agreement with ISO New England (ISO-NE). The ruling closes a two-year Commission investigation into whether Maine utilities’ continued participation in the regional transmission organization was in the interests of Maine’s electricity consumers.
The proceeding was a fascinating case study with some important lessons for the rest of the country (The Ohio legislature recently created a Federal Energy Advocate in part to evaluate that state's continued participation in MISO). Throughout the proceeding, the Maine Commission grappled with the state's diminished control over its own energy policy as part of a regional market, and the need to address transmission planning on regional basis. The Commission expressed concerns with ISO-NE’s transmission cost allocation, governance, and cost containment efforts: in the final Order the Commission vowed to continue efforts for reform in these areas within the ISO.
Ultimately, none of the proposed alternatives proved viable or cost-effective. Instead, the Commission determined that continued ISO participation was the best option. The Commission's Order rules out Maine leaving ISO-NE, which is good news for the development of renewable energy, particularly wind, in Maine. Some of the proposed alternatives lacked a day-2 market, which would have required wind generators to submit day ahead balanced schedules, and there were serious questions about an independent or joint Maine-New Brunswick ISA's ability to balance the combined 2,800 MW (1,300 MW in Maine) of proposed wind in the two areas. Reliable access to the ISO-NE markets for Maine renewables will benefit all of New England. Kudos to the Maine PUC for making the right decision.
National developments may have trumped Maine's concern for its own autonomy. The Order contains something of a call to arms, reflecting the growing concern within New England that federal electricity policy is biased toward midwestern wind and the giant transmission projects needed to bring that generation to market:
In order to fulfill our energy objectives, neither Maine nor our sister States in New England can act alone. We in New England cannot ignore the reality that there are federal moves afoot to bring vast quantities of Midwest wind to the east coast through the construction of high voltage transmission that Maine will be required to help pay for. A concerted and cohesive regional response by New England and its neighbors . . . will be required to thwart efforts at the national level to impose the costs of Midwest wind on New England ratepayers unilaterally.
Maine, at least for now, sees the importance of participating with rest of New England to respond to this challenge. It remains to be seen whether New England will take up the PUC's call, though early signs are promising.
* Pierce Atwood represented CMP throughout this proceeding.
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