By William Opalka
Disregarding its staff’s recommendation, Maine’s Public Utilities Commission on Tuesday endorsed a plan in which electric ratepayers would help finance natural gas pipeline expansion (2014-00071).
PUC staff said last month that ratepayer subsidies were unnecessary because market conditions have changed dramatically since 2013, when the proposal was first made. (See Maine PUC Staff Advises Against Pipeline Contracts.)
The vote to ignore the staff recommendations was unanimous. The order includes a proviso that four other New England states considering similar financial support would have to follow suit for Maine’s participation. Only Massachusetts regulators have made that commitment so far and that decision is being challenged in court. (See More Pipelines for New England: ‘Gold-plating’ or Necessity?)
“There are so many more things that need to happen before a shovel gets turned or more gas begins to flow, and most of those things are outside of Maine’s control,” Tim Schneider, Maine public advocate, told the Bangor Daily News. He also opposed the staff recommendation.
The commission said they have determined the benefits of new pipeline capacity outweigh any costs.
Yet to be determined are those costs or when supply contracts might be signed. Under state law, any action would require written approval from Gov. Paul LePage.
“The fossil fuel industry hoodwinked the PUC into gambling $1 billion of Mainers’ hard-earned money on a massive new gas pipeline,” Conservation Law Foundation attorney Ben Tettlebaum said in a statement. “From Day One, this LePage-appointed commission has been desperate to find any way to justify overwhelming concessions for Big Gas, no matter the cost.”
The approval comes after the cancellation earlier this year of the Northeast Energy Direct expansion project. The largest remaining proposal is the Access Northeast project, which would increase natural gas capacity from New York to Maine. A related proposal before FERC to allow local distribution companies to sell natural gas to utilities for power generation is being opposed by some power plant owners. (See Generation Owners Seek to Block EDC-Pipeline Deals.)