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August 22, 2007

Paper mills, PUC challenge electricity rates

Representatives from two Maine paper mills joined Governor John Baldacci and the Maine Public Utilities Commission yesterday to challenge increased electricity rates from ISO New England, which operates Maine's power grid.

The Huhtamaki paper mill, in Waterville, will pay an additional $65,000 per month on its $1 million electricity bill because of a six percent increase in rate charges imposed by ISO New England late last year, according to the Bangor Daily News. The company says Maine's rates are 2.5 times higher than rates at its facilities in Alabama, California and Indiana. Keith Van Scotter, president of Lincoln Paper and Tissue, told the paper electricity rates "mean dollars not available for wages, benefits and plant improvements."

On Monday, the Maine PUC filed legal briefs with the Federal Court of Appeals in Washington, D.C., to challenge the Federal Energy Regulatory Commission's approval of the ISO New England rate hike, which MPUC officials estimate will cost Mainers an extra $300 million over the next four years.

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