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Boston Globe
22-05-2025
- Business
- Boston Globe
Hydro-Quebec shut off the spigots for New England power in March and hasn't turned them back on. Why?
The lack of Canadian hydropower isn't a reliability issue for us — not yet, anyway. But the surprisingly long dry spell out of Hydro-Quebec should serve as a warning to New England policy makers that the days of cheap, plentiful, low-carbon power from the north hitting the spot market are no longer guaranteed. A big power line under construction for Massachusetts, dubbed Related : Advertisement The utility, which is owned by the Quebec government, made the move amid tensions between the Trump administration and Canadian leaders over tariffs. So the shutoff's timing raised more than a few eyebrows — at least on this side of the border. Tensions have since eased with Mark Carney's election to prime minister, and it's looking increasingly likely Hydro-Quebec's electricity wouldn't get hit with a Trump tariff anyway. No surprise, then, that Hydro-Quebec says this unusual shutoff is about market dynamics, not politics. The company says it simply can't sell power profitably into New England right now, given the relatively low prices on the wholesale market. Quebec Advertisement Hydro-Quebec did send a bit of electricity here this spring, but essentially only to meet contractual obligations, not to compete in the wholesale market as it usually does. On most days, no power at all flowed here over the main line; an ISO New England spokesman says that line typically provides 1,000 to 1,600 megawatts of electricity to the region, enough power for more than one million homes; it was sending plenty of juice into the region as recently as February when prices were much higher. How important is it? The grid overseer Serge Abergel, Hydro-Quebec's US chief operating officer, says he expects Hydro-Quebec will return to the New England market after the temps heat up and the air conditioners start humming. Sure as the season, demand for electricity will drive up wholesale electric prices and make it more profitable to sell here. Advertisement Hydro-Quebec's US chief operating officer says he expects Hydro-Quebec will return to the New England market after the temps heat up and the air conditioners start humming. David L. Ryan/Globe Staff This spring is different, Abergel said, for two reasons: Hydro-Quebec's reservoirs were lower than average following two years of warmth and limited rainfall, and are being replenished. Meanwhile, the company needs to ensure it can keep the lights on in its home province while also meeting the demands spelled out in two big contracts that kick in over the next year — one for the New England Clean Energy Connect (NECEC) line through western Maine, and another for a parallel line going up in New York. The full effect of the spring thaw won't be seen for another few weeks, but Abergel says Hydro-Quebec officials are hoping for a return to more normal conditions this summer. To Dan Dolan, president of the New England Power Generators Association, the Hydro-Quebec shutoff confirms his original concern that the new transmission line that Avangrid is building for Massachusetts through Maine might not lead to a net increase in hydropower imports into the region, as originally intended. Governor Maura Healey has repeatedly stressed the importance of the NECEC line to the regional grid's reliability and efforts to curb carbon emissions. But Dolan says that goal can only hold true if the power line adds to the historical Hydro-Quebec flows, instead of replacing them. Otherwise, Dolan warns that Avangrid could be Advertisement The energy company and the trade group The increased access between the Canadian and New England markets should help flatten price spikes, he said. Plus, the line helps with fuel diversity, an important contribution given New England's reliance on natural gas. The Healey administration remains steadfast about NECEC's value amid this hydropower dry spell. A spokeswoman said it will reduce electricity prices, provide reliability in the winter, and improve public health here. Still, hydropower consultant Robert McCullough says the extended shutoff could be a sign of troubling trends in Quebec. He's beginning to wonder if the droughts and resulting low reservoir levels will continue — contrary to the company's stated hopes that more normal conditions are on the way. Hydro-Quebec, he says, underinvested for years in its own power infrastructure, and is now racing to keep up. Richard Levitan, an energy consultant in Boston, says it's sensible that Hydro-Quebec is conserving its resources in light of the fact it has been drier than normal this past winter, and springtime demand in New England is low. It's understandable why the company doesn't open the floodgates into a 'down market.' The spigot has been predictably tightened, in his view, not closed. But if one of our big power plants or major transmission lines isn't available this summer at a time when electricity demand in New England is high, Levitan says he would be concerned about reliability if exports from Quebec don't pick up. Advertisement Tapping into Quebec's hydropower was once seen on Beacon Hill as a smart way for Massachusetts to help fight global warming. Ironic, then, that prolonged stretches of warmer weather could cause the sources of that power to start drying up. Jon Chesto can be reached at
Yahoo
16-04-2025
- Business
- Yahoo
Maine Legislature advances bill to tweak provisions of 2021 transmission line referendum
States are struggling to reach their clean energy goals because of a backlog in transmission capacity that's keeping wind and solar projects off the grid. (Charles Rex Arbogast/The Associated Press) Lawmakers on the Energy, Utilities and Technology Committee voted to advance a bill that would modify the law born out of a 2021 referendum question requiring the Maine Legislature to approve any new high-impact transmission lines. The committee voted 7-4, along party lines of those present, to recommend the passage of LD 810 with some small changes. The legislation is meant to clarify that when the Legislature asks for a new line to be developed, that line should not come back to the Legislature for approval after the review process performed by the Public Utilities Commission. Democrats who were present for the vote supported the bill from Rep. Chris Kessler (D-South Portland), while Republicans voiced concerns about repealing the rule. 'This is appropriate and good public policy to ensure that we are having at least a lower cost of building transmission in the state and ultimately with the goal of reducing costs for ratepayers but not abdicating our responsibility for a thorough review of these projects,' Kessler said, noting that current statute could lead to developers sinking millions of dollars into a project that could ultimately be voted down by lawmakers. 'Not good public policy': Bill would roll back some provisions of 2021 transmission line referendum In 2021, Maine voters approved a ballot question to increase legislative oversight on new transmission lines in a campaign that drew passionate grassroots support and over $60 million in opposition spending fueled mostly by international energy companies. The question was largely seen as a vehicle to stop the controversial 145-mile transmission line through western Maine known as New England Clean Energy Connect. Despite the political and legal hurdles, Central Maine Power's corridor project is expected to be completed later this year. Having worked closely on the 2021 referendum, Sen. Nicole Grohoski (D-Hancock) said the intention was to give the public a way to debate the merits of a line being proposed by an entity other than the Legislature. Given that, she feels LD 810 provides a 'really helpful clarification of the intent of the referendum.' She went on to say that this is an 'opportunity to make it crystal clear that a line that's authorized by the Legislature is different than a line that's being proposed by a for-profit entity.' Rep. Steven Foster (R-Dexter) said he isn't comfortable repealing it because, as it stands, the rule allows those who live in the path of these projects and could face eminent domain takings to appear before the Legislature, rather than receive notification by mail. 'It gives us one more chance to debate, discuss and either approve or not said line,' Foster said. Before casting a vote against, Sen. Matt Harrington (R-York) said he was 'highly conflicted' about the bill. While he believes businesses that want to invest large sums of money in Maine should not have to come before 'this highly emotional group of people we call the Maine Legislature anymore than possible,' he acknowledged that more often, the general public doesn't have concerns about such projects until after the route is determined, which normally comes after preemptive legislative approval. Before the committee voted, Kessler proposed amending the bill to insert the word 'statutory' to clarify that transmission lines proposed by agencies with the statutory authority to do so will be deemed to have the necessary legislative approval. The legislative analyst said she could come back to the committee with further language suggestions to better define when an agency has that sort of authority. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
12-03-2025
- Business
- Yahoo
‘Not good public policy': Bill would roll back some provisions of 2021 transmission line referendum
Maine needs to expand its transmission system in the coming years to meet the needs of increased electrification, while ensuring there is enough clean, affordable energy, said Caroline Colan, the legislative liaison for the Governor's Energy Office. (Photo by) Rep. Chris Kessler voted for the 2021 referendum question that created the requirement for the Maine Legislature to approve any new high-impact transmission lines. 'This referendum was intended to give the public a greater voice in the development of major transmission lines,' Kessler said of the ballot question that drew passionate grassroots support and overcame over $60 million in opposition spending fueled mostly by international energy companies. Since casting that vote, the Democrat from South Portland said he has had a change of heart and no longer believes it is good public policy, as he told the Legislature's Energy, Utilities and Technology Committee Tuesday afternoon. That rethinking led Kessler to introduce LD 810 to streamline the approval process without repealing the entire policy born out of the people's vote. The proposal seeks to clarify that when the Legislature asks for a new line to be developed, that line should not need to come back to the Legislature for approval after the review process performed by the Public Utilities Commission. In 2021, Maine voters approved a ballot question that increased legislative oversight on new transmission lines. The question was largely seen as a vehicle to stop the controversial 145-mile transmission line through western Maine known as the New England Clean Energy Connect. Despite the political and legal hurdles, the Central Maine Power corridor project is expected to be completed later this year, Maine Public reported. Rep. Sophie Warren (D-Scarborough) asked Kessler and others who supported the bill to address the fact that the proposal would scale back a policy that was supported by nearly 60% of Maine voters. 'This is not a comfortable position for me to be in,' Kessler said in his testimony, but the policy has created unintended consequences. 'It may be an unpopular position to have but I think it's not good public policy,' he added. While Kessler argued the Legislature lacks the technical expertise to sign off on the details of a transmission line, representatives from the Office of Public Advocate, Maine State Chamber of Commerce and multiple environmental organizations agreed the duplicative process can deter developers, drive up costs for ratepayers and stand in the way of meeting climate goals. Several of the groups voiced support for removing the legislative approval requirement entirely. Public Advocate Heather Sanborn said a second round of approval for projects requested by the Legislature is not necessary. 'Such a requirement will have the direct effect of costing ratepayers additional money by introducing additional risk and delay that must be priced into the modeled costs of the project from the beginning,' she added. Maine needs to expand its transmission system in the coming years to meet the needs of increased electrification, while ensuring there is enough clean, affordable energy, said Caroline Colan, the legislative liaison for the Governor's Energy Office. Colan testified neither for nor against the legislation, but she echoed what others said about it adding financial risk and driving up developer bids, which ultimately fall on Maine ratepayers. The Maine Public Utilities Commission is responsible for conducting a thorough review process for petitions from developers to construct new transmission lines capable of 69 kilovolts or more, as required by state law. The petition needs to include information about why the line is needed, why it should be built along that particular route and how it will affect public health, safety, as well as the scenery and environment, among other considerations. The commission holds a public hearing as part of the petition process and is tasked with determining whether the new line is needed. Because of the 2021 referendum, in addition to that process, the Legislature must give its approval of the project. However, Kessler pointed out what he sees as a flaw in the referendum language, which does not specify when in the process legislative approval should occur. Opposing the change, Tanya Blanchard, founder of Preserve Rural Maine, argued that if the Legislature is knowledgeable enough to propose a transmission line, it should be able to approve one. Blanchard founded the group in the summer of 2023 in response to a proposed transmission line through more than 40 rural communities. She fears that bypassing the legislative review could not only weaken public trust, but also lead to projects being approved without fully considering the effects on local people, wildlife and natural beauty. The intention is not to stop transmission lines, but 'get them right the first time,' Blanchard said. Legislature approval can provide that assurance, she added. Kessler's bill was one of four that the committee heard Tuesday related to transmission lines in the state. LD 596 sponsored by Sen. Mark Lawrence (D-York) would provide a vehicle for the Legislature to consider the construction and operation of a transmission line to connect renewable energy resources in northern Maine with the regional electric grid. While it does not give preemptive approval, the bill serves as a placeholder in case the Public Utilities Commission moves forward with soliciting new bids for the renewable energy project and transmission line in northern Maine. The Legislature passed a law in 2021 calling for this project, but would still need to sign off. The commission selected bids for a wind farm and transmission line in early 2023, but those contracts were later terminated due to delays and other changes that increased the costs of the projects. Sen. Scott Cyrway (R-Kennebec) introduced LD 197 to direct the Governor's Energy Office to study the state's future electric transmission infrastructure needs with a report on the findings to be submitted by September 2026. Colan testified neither for nor against the bill, but said the office is already working on a 'thoughtful, comprehensive, forward-looking strategy to address the full range of long-term transmission-level needs expected in Maine.' The bill from Sen. Joseph Martin (R-Oxford), LD 469, would require that 50% of electricity carried on any new lines originating in Canada would need to be consumed in Maine. It would also require a variety of reports and efforts to reduce costs amid increased electricity consumption. While the committee raised a number of technical questions about the bill, Martin said the intention is to control the supply and demand to benefit Maine ratepayers. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
10-03-2025
- Business
- Yahoo
$50 bill credits included in Mass. Gov. Healey's plan to reduce energy bills
The Healey administration hopes to save Massachusetts ratepayers billions of dollars in costs over the next five years by redirecting some clean energy-related charges that drive up utility bills, expanding discount programs, and stabilizing the local energy supply. WATCH: Mass. Gov. Healey announces plan to lower energy bills, prevent future price hikes Much of the savings is long-term, but immediate relief is planned in the form of $50 credits on April electric bills for residential customers of Eversource, National Grid and Unitil, Gov. Maura Healey announced Monday. To pay for that one-time relief, the state will redirect about $125 million collected from Alternative Compliance Payments (ACP), which retail electricity suppliers can pay to help fulfill their requirements to use a certain amount of renewable or alternative energy sources. ACP funds normally promote clean energy projects or technology that reduces demand. The redirection of clean energy funds for electric bill relief builds on a previous move to reduce March and April natural gas bills by about 10 percent. Healey's plan also calls for the Department of Public Utilities to examine new 'potential regulations' on competitive electric suppliers. Watchdogs -- including Healey herself when she was attorney general -- have accused those third-party companies of predatory tactics, but industry leaders argue they can help customers save money and legislative efforts to prohibit them from selling power to residents stalled in the House. Altogether, Healey's office estimated the constellation of actions, including elimination of the Solar Renewable Energy Certificate I and II program, expanded auto-enrollment in discount rates, and the arrival of power from the New England Clean Energy Connect program could save about $5.8 billion over a five-year span. Healey said she also plans to file an 'energy affordability and independence bill' at some point in the coming weeks, echoing a pledge she first made to business leaders two weeks ago. The governor held the energy costs press conference at Community Teamworks in Lowell. This is a developing story. Check back for updates as more information becomes available. Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
Yahoo
27-01-2025
- Business
- Yahoo
Maine delays to CMP project drove up costs by more than $500M, Massachusetts regulators say
Jan. 27—Political and legal disputes in Maine that delayed construction of the New England Clean Energy Connect transmission line will add more than $500 million to Massachusetts ratepayers' bills, Bay State regulators said Monday. The Massachusetts Department of Public Utilities announced a settlement between utilities, the Massachusetts attorney general and Department of Energy Resources, and Central Maine Power, a subsidiary of Avangrid Inc., which is the operator of NECEC. The settlement approves higher costs brought on by project delays and does not include legal fees related to the challenges. Advocates say the NECEC contract will reduce overall rates because a new source of electricity being delivered to the region will bring down the market price. Electric customers can expect to save about $18 to $20 a year over 20 years, Massachusetts said. The NECEC project will reduce average electric costs by $1.52 a month for Eversource and National Grid residential customers and $1.63 for Unitil ratepayers. The Massachusetts order does not extend to Maine ratepayers. NECEC will transmit 1,200 megawatts of Canadian hydroelectricity to the New England grid over 20 years, enough to power more than 1 million homes. Maine voters in November 2021 rejected the 145-mile transmission line through the western part of the state. In court battles that followed, NECEC's backers said the project had established a right to continue construction. A Cumberland County jury decided in April 2023 that the project may resume. The project's developer, Avangrid, resumed construction in October 2023 — nearly two years after voters pulled the plug on it. More than 34% of construction is completed, and the project is expected to come online in 2026, Massachusetts officials said. Regulators said increased costs are related to construction delays brought on by the voter initiative, and the settlement will permit the utilities to bill increased costs to ratepayers. Costs paid by NECEC — demonstrated by analyses, cost projections, contracts and invoices — provide "sufficient basis" showing that an increase of $521 million, in 2017 dollars, is based on costs directly associated with the voter initiative, regulators said. Accounting for inflation, the $521 million in purchasing power now would be $677 million. "As a result, NECEC incurred significant unanticipated costs," Massachusetts regulators said. The utilities and NECEC began in January 2023 negotiating the transmission project's "alleged economic losses" due to construction delays, regulators said. Massachusetts regulators said the utilities showed that the cost for energy and environmental benefits in the power purchase agreements is less by nearly $4 billion than the forecasted market prices over 20 years. In addition, regulators said "significant qualitative benefits will flow to customers" in reliability, mitigated environmental impacts and economic development. Regulators "ultimately found that the power purchase agreements are a cost-effective mechanism for procuring low-cost renewable energy on a long-term basis," the Massachusetts Department of Public Utilities said. The total cost that may be recovered from ratepayers is $1.4 billion over 20 years, regulators said. Copy the Story Link
