Hydro-Québec pledges to sell discounted power to Mainers over NECEC, if built

Hydro-Québec, the Canadian public utility working with Central Maine Power Co. on a controversial plan for a 145-mile electricity transmission line through the western part of the state, has pledged to sell discounted power over the line to Mainers.

Under an agreement announced Friday by Gov. Janet Mills, Hydro-Québec will supply enough renewably sourced electricity to power 70,000 homes or 10,000 businesses in Maine.

In addition, the utility said it will step up the $170 million in public benefits it agreed last year to provide, including rate relief for Maine consumers and development incentives for broadband access, electric vehicle charging stations and the use of heat pumps.

Specifically, Hydro-Québec will sell 500,000 megawatt-hours hydroelectricity annually in Maine at a discount of $4 per MWh, via the New England Clean Energy Connect line, if permitted.

To implement the discount, the Governor’s Energy Office and Hydro-Québec will complete a 20- year power purchase agreement with Maine buyers at the discounted price, or Hydro-Québec will pay a total of $40 million in installments over 20 years for the benefit of Maine retail energy customers.

In addition, Hydro-Québec will accelerate the start of its benefit payments so they begin when final permits for the project are received, rather than when it begins commercial operation. The funds to be provided by Hydro-Québec include the following.

Rate relief: $140 million in installments over forty years, which includes $90 million of rate relief for retail electricity customers within Central Maine Power service territory and $50 million for the Low-Income Customer Benefits Fund to reduce energy costs for low income customers.

Broadband: $10 million to capitalize a Broadband Fund to provide grants that support the implementation and maintenance of high-speed broadband infrastructure in the communities that host the transmission facilities. Payments will be made in installments over five years.

Heat pumps: $10 million for the installation of high-efficiency air-source heat pumps, which may include targeted initiatives to reach low-and moderate-income individuals in Maine. Payments will be made in installments over five years.

Electric vehicles: $10 million for the Hydro-Québec EV Fund to fund the deployment of fast- charging infrastructure in Maine. Payments will be made in installments over five years.

Commenting on the new agreement in a news release Friday, Mills said, “I have heard people say that the NECEC will deliver power directly to Massachusetts but not to Maine. With this new commitment, we ensure that Maine consumers access power directly from the line at a discounted price.”