Politician says it’s time the neighbouring jurisdictions sat down to discuss respective needs

Politicians on both sides of the New Brunswick-Maine border agree a solution is possible that would please all sides in the debate over the proposed creation of an energy corridor leading from New Brunswick through neighbouring Maine.

But it’s impossible to come up with a solution if the potential partners aren’t even talking, says Maine Rep. John Martin (D-Eagle Lake).

Martin said Thursday Maine politicians had no advance warning of the proposed sale of most of NB Power’s assets to Hydro-Québec and they still have no idea how the move might impact on the state.

“Maine was never talked to, Maine was never consulted – not that (the New Brunswick government) had to, but it would have been helpful,” Martin said. “We don’t know whether they want to consult us, or talk to us or whether they want to ignore us. It may be a great idea “¦ but what does it mean for us?

“It would have been nice if we knew more about their intentions. It caught the governor off guard, it caught the legislature off guard. Now that NB Power is going to be owned by Hydro-Québec, we are completely surrounded by Quebec. We could be at the mercy of that system and we obviously have some concerns.”

Martin suggested it’s time the neighbouring jurisdictions sat down to discuss their respective needs.

“I really think this whole issue between New Brunswick and Maine and now Quebec, if everyone sat down in the same room, we could negotiate what it is we want and settle it,” he said. “I think it’s doable. If they want a corridor, fine. Let’s figure out what the corridor ought to be and where it ought to be and what the requirements for everyone are going to be.”

Martin and other members of a state task force attempted Wednesday to finalize proposed rules governing a potentially lucrative energy corridor in Maine amid concerns in the state about Canadian companies’ plans to supply energy-hungry markets to the south.

Earlier this year, provincial and state officials announced plans to explore leasing the right-of-way along Interstate 95 and other highways to companies interested in building electricity transmission lines and energy pipelines to southern New England. Irving Oil Ltd. is studying the feasibility of such a corridor.

Maine Sen. Peter Mills, another task force member, came up with a proposal that he felt would protect Maine’s interests.

“I want cheap power and I want our generators to have a crack at that corridor at a fair price,” Mills said Thursday. “If the corridor proposal fails to contain those two, then it ought to be denied.”

Mills’ proposal appeared to have strong support among task force members.

Maine politicians feel proceeds from the leased land to accommodate the corridor – which could be in the tens of millions of dollars annually – could then be used to make Maine homes and businesses more energy efficient and to encourage the expansion of homegrown renewable energy sources.

Mills said the corridor could provide the state with an opportunity to export even more energy than it does today.

He said the state isn’t able to maximize it wind energy potential.

“We have huge federal tax incentives “¦ and yet we don’t have the transmission lines to get that power out,” Mills said. “The wind projects that we’ve already built have pretty much exhausted the capacity of our transmission system. We have hundreds and hundreds of more megawatts of opportunity that can’t be exploited because we don’t have the power lines to get it out of here.

“The corridor could help.”

New Brunswick Energy Minister Jack Keir said Mills’ proposal sounds reasonable.

“I’ve always said there has to be a win-win – there has to be an opportunity for both partnerships to gain some benefit,” Keir said. “With respect to the transmission corridor, it’s going to be private-sector investment, it’s not going to be government investment. It’s going to be investment made by those who generate electricity and believe they can get it to the market at a competitive price that are going to build that transmission line.

“The rules are very clear in an open tariff system like we have in New Brunswick and Maine and Quebec – when any capacity is built, if there is any capacity left over, it has to be put out to the open market for bids. Having said that, whoever is going to invest in Maine in a transmission line is going to have to understand that there’s going to be some Maine component to that line. What (Mills) is asking for isn’t unheard of and could be part of any negotiation between partnerships trying to build a transmission line.”

The Maine task force plans to hold one additional meeting Dec. 2. The group’s suggested legislation will then be submitted to the state’s Utilities and Energy Committee for consideration.

- with files from the Bangor Daily News

Dave MacLean
Telegraph-Journal

nbbusinessjournal.canadaeast.com

20 November 2009

Tags: Wind power, Wind energy

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