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October 31, 2014

PUC to consider natural gas expansion plans

State regulators will review three proposals for natural gas expansion that could cost Maine $75 million annually for 20 years, but could also help it avoid future spikes in electricity costs.

The Portland Press Herald reported that the Maine Public Commission voted 2-1 Thursday to review three proposals to build out Maine’s pipeline capacity. Commissioner David Littell opposed moving forward, saying other alternatives should first be considered because of the proposed expansion’s high cost to the state.

Pipeline supporters have said that project would have to be subsidized by the state in order to be financially viable, the newspaper noted, adding that the expansion would help drive down electricity costs, which have spiked during the last two winters.

But, the newspaper also said, the state would still have to pay for the subsidy, which would impact Maine ratepayers, even if it can’t find private users that needs the capacity.

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