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January 25, 2013

PUC OKs Statoil offshore wind pilot

In a split decision, the Maine Public Utilities Commission voted 2-1 to allow Statoil North America to pursue an offshore wind energy pilot project in the Gulf of Maine.

The Bangor Daily News reported that PUC Chairman Thomas Welch voted with commissioner David Littell to support the project's pursuit of a long-term power purchasing agreement that will likely be signed with Central Maine Power Co.

Commissioner Mark Vannoy voted against the project, saying he doubted whether power generated by offshore wind turbines could ever reach competitive prices with other energy sources.

Welch previously disagreed with the project's term sheet, which was revised in advance of Thursday's vote, based on the expectation that the company would receive a $47 million federal grant, following a $4 million grant the project received in December.

Following the decision, Gov. Paul LePage and Patrick Woodcock, LePage's new energy director, echoed Vannoy's criticisms of the project in a statement casting doubts on the project's return on investment.

Woodcock says the project will pass on $203 million in project costs to ratepayers over 20 years at a time when he said rate increases are not desirable.

LePage has consistently taken issue with expanding wind power projects in the state and identified hydropower, biomass, wood pellets, heat pumps and natural gas as less expensive energy sources.

Proponents of the Statoil project say it could eventually add up to $43 million annually to Maine's economy, the paper reported.

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