What’s nonetheless unknown about Maine’s proposed utility takeover
AUGUSTA, Maine — It stays unclear whether or not the proposed takeover of Central Maine Energy and Versant’s infrastructure will enhance customer support, reliability and the state’s progress in the direction of its local weather objectives, Public Advocate William Harwood stated Tuesday.
Harwood’s workplace launched an summary Tuesday of “among the extra vital points and questions” dealing with Query 3 on the November poll, which might place the infrastructure of Maine’s two largest electrical utilities underneath the management of an elected board.
These in favor of making a brand new Pine Tree Energy Firm have argued a consumer-owned utility would give Mainers extra management over what’s now an investor-owned system that includes Versant and CMP, each of which have foreign-owned dad or mum corporations, saying the brand new mannequin would offer billions in financial savings and assist the state attain emissions objectives.
Opponents of Pine Tree Energy, backed by thousands and thousands of {dollars} spending from the dad and mom of the utility corporations, have stated the buyout would value about $13 billion, characteristic a politicized oversight board and never routinely result in a greener, extra environment friendly grid.
Whereas Harwood’s workplace famous some probably constructive and unfavorable results of the proposed transitions, Tuesday’s truth sheet was most notable for leaving many key questions unanswered. They are going to seemingly stay that method till voters make the ultimate resolution on Nov. 7. The ratepayer advocate’s workplace has not taken a place on the referendum.
It famous if the referendum passes and takes impact in 2025, the takeover course of may take 5 to 10 years to permit for choosing the board and 6 appointed specialists, buying the CMP and Versant infrastructure and resolving anticipated litigation between Pine Tree Energy and the 2 utilities over the “honest market worth” of their belongings.
Relating to customer support, reliability and local weather objectives, Harwood’s workplace stated it’s “not doable to foretell with certainty” whether or not every issue would enhance underneath Pine Tree Energy.
“The priorities of low-cost and reliability are sometimes in stress,” the workplace stated, including the brand new utility may “really feel political strain to maintain charges as little as doable, which can negatively impression the reliability of its operations.”
Bearing on among the factors a couple of environmental teams made in deciding to remain impartial or take no place on the referendum, Harwood’s workplace stated it’s unclear whether or not the consumer-owned construction can be “kind of responsive” than investor-owned utilities to assembly Maine’s statutory objectives of lowering greenhouse fuel emissions 80 % by 2050.
Like CMP and Versant, the brand new utility couldn’t generate electrical energy and would keep related to the regional New England grid. Harwood’s workplace stated this may imply the brand new utility would as a substitute be measured on local weather objectives by its skill to assist with the transition to electrical autos or integrating renewable power into the grid.
Prices and potential financial savings stay unknown, the general public advocate’s workplace stated, but it surely additionally added the takeover may create “new efficiencies and economies of scale” by uniting two utilities.
Pine Tree Energy, if accepted, will choose a personal third get together to deal with operations, upkeep, customer support, regulatory affairs and different administrative duties, with the Maine Public Utilities Fee and federal regulators additionally retaining the power to step in.
Harwood’s workplace famous the “prudence doctrine” that has shareholders take in the prices of utility “imprudence” would seemingly not apply to Pine Tree Energy, leaving ratepayers to tackle prices. However one choice might be to cost the third-party operator of any new utility, as a substitute of ratepayers, for any of the “imprudently incurred prices,” the workplace added.
Pine Tree Energy supporters have pointed to a provision within the initiative that requires the brand new utility to undergo the PUC a 5-year plan “to satisfy preliminary affordability, reliability, decarbonization and connectivity objectives.”
