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Portland Press Herald - 2/9/2006

Baldacci proposes energy reforms

AUGUSTA Gov. John Baldacci introduced an energy plan Wednesday that would increase Maine's dependence on fuel sources like wind and hydro power, help local governments cut fuel costs and take other steps to stabilize prices and curb reliance on foreign oil.

Keeping a pledge he made in his State of the State address last month to tackle energy issues, Baldacci said Maine should cut the tax on diesel fuels containing biodiesel and adopt energy standards for all appliances that do not have them now.
He called for long-term energy contracts that could control price increases, diversify the mix of energy sources and encourage efficiency and conservation.

"Electric rates have not come down" since the Legislature restructured the electricity industry in 1997, Baldacci said at a State House news conference. "Maine has turned over control of our energy future to unregulated private corporations and to decision makers in Washington who are not sensitive to the electric bills paid by Maine people and businesses."

Noting that 60 percent of Maine's electricity comes from natural gas, Baldacci said that is "a risky position to be in" and is "poor energy policy, especially in a state with abundant renewable energy resources like wind, water, wood and tidal power."

Maine has "an enormous wind supply that's generated outside of Augusta," in addition to the hot air produced at the State House, he joked.

Baldacci did not mention the agreement that he signed with Citgo Petroleum CEO Felix Rodriguez last month to give giving poor Mainers at least $100 million worth of heating oil this winter. The Venezuelan government owns Citgo and the president of Venezuela, Hugo Chavez, is a vocal critic of American capitalism who has accused President Bush of plotting to kill him. The Bush administration sees Chavez as a demagogue.

The governor said he will create a task force to look into whether Maine should remain in regional groups, including the New England Power Pool, that regulate the electricity supply. The Legislature is preparing to consider a separate bill filed by Rep. John Brautigam, D-Falmouth, to authorize the Public Utilities Commission to withdraw Maine from the regional compact.

Critics suggest that NEPOOL and a related organization known as ISO New England may be pursuing regional policies that will hurt Maine consumers, such as construction of power plants in southern New England that Maine will have to help subsidize. Baldacci said he does not know whether such complaints are valid but he wants the state to find out.

"I do not want Maine consumers and businesses paying the freight for the rest of New England," he said.

Reaction to the governor's plan was generally muted on Wednesday, in large part because the legislation he is proposing has yet to be made public. That left interested groups waiting until the bill is printed and the details become clear. "This is really complicated stuff," said Chris Hall of the Maine State Chamber of Commerce. "We've got to see what the language is" in the legislation.

David Wilby of the Independent Energy Producers of Maine took a similar view, saying his group supports the goal of increasing the state's use of renewable energy but will have to study the legislation before passing judgment on it.

"We don't want to see requirements that will make the mix of energy sources more expensive," said John Williams of the Maine Pulp and Paper Association. But Williams said it is too soon to tell whether Baldacci's proposals would have that effect.

State Public Advocate Stephen Ward, who represents consumers on energy issues, praised Baldacci's efforts.

Ward said Baldacci's call for long-term energy contracts could help diversify the supply, increase the demand for wind, biomass and tidal power, and encourage suppliers to offer efficient light bulbs, water-heater wraps and other energy-saving devices.

Matthew Davis of Environment Maine, a group that follows energy issues, said Baldacci's push for renewable energy "is the right one to make."

Davis praised the proposed expansion of energy standards to include more appliances, but he also said the governor's plan would be stronger if it included more money to support programs that promote energy efficiency.