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June 5, 2013

LePage wants parity for UMaine offshore wind plan

Gov. Paul LePage says he will support a wide-ranging energy bill now in committee if the bill allows a University of Maine project to compete for ratepayer support. The draft bill would allow UMaine's VolturnUS project to do so if a pilot project from Norwegian energy company Statoil, which secured a power purchasing agreement with the PUC in January, misses certain financing or construction goals, according to the Bangor Daily News.

Both projects have received $4 million in the first round of federal Department of Energy development grants and will be competing for a second, $50 million grant round early next year. The UMaine project is a partnership of Pittsfield-based Cianbro Corp., Bath Iron Works, Central Maine Power Co. and CMP parent Iberdrola, among others.

The draft amendment states that if Statoil does not secure federal financing, opts out of its Maine project or does not meet construction deadlines that the PUC may consider UMaine's project for ratepayer support.

LePage has roundly criticized the PUC's Statoil decision, saying it would overburden ratepayers. Patrick Woodcock, head of the Governor's Energy Office, told the paper that the administration's push for this amendment to the omnibus energy bill now aims to get "the best deal for offshore wind development."

Previously, the governor wanted the bill to include changes to the state's renewable energy portfolio standard, which allows wind facilities to count toward the state's required renewable power purchases. LePage sought to remove limits restricting other generation sources over 100 megawatts from counting toward that RPS standard.

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