Senator Bartlett, Representative Bliss, members of the Utilities and Energy Committee:
I would like to testify in support of LR 3130 on behalf of Environment Maine. Environment Maine advocates for clean air, clean water and open spaces on behalf of 3,500 members statewide.
Environment Maine strongly supports legislation to require long term contracting with new clean, renewable energy produced in Maine from wind, solar, geothermal, tidal, and landfill gas. Promoting these clean, renewable, in-state sources of energy will protect our environment from pollution from dirty energy sources, and will bolster our economy by keeping energy expenditures in the state. Perhaps even more importantly, increasing renewable energy generation will diversify and secure our energy supply, and stabilize energy prices.
While ISO-NE threatens to burden consumers of electricity in Maine and across the region with huge costs to give subsidies to conventional power generators, Maine can make its own policy to encourage added clean energy generation at lower cost than LICAP. And, these policies can drive down wholesale energy prices by relying on cheap, abundant alternative fuel. So long as Maine and the region continue to rely on gas and oil, volatile prices will continue to buffet consumers. One only needs to look at the price of natural gas over the past decade to see why relying too heavily on fossil fuels drives up wholesale electric and other fuel costs (Figure 3).
Establishing reasonable and enforceable goals for long term contracting between utilities and renewable energy generators over the next decade is critical to ensuring that Maine meets the challenge of energy independence. For the clean renewable energy industry to succeed in Maine, renewable generation projects must be able to secure long term contracts for their power so as to secure capital investment. Last March, the standard offer price of electricity went up about 15 percent, and this March it is scheduled to increase another 20 percent. With prices in the marketplace projected to continue to increase in the foreseeable future, Maine needs an insurance policy against fossil fuel over reliance – contracts with renewable energy projects.
Maine has abundant sources of wind, solar, tidal, biomass and low-impact hydro. Environment Maine believes that establishing a standard for new clean energy of at least 10% by the year 2017 is sensible and conservative. Two wind farms either in the construction or permitting process would satisfy up to approximately 2 percent of the state’s electricity needs. The proposed wind farm at Mars Hill would satisfy about 1 percent (50MW) of the standard. Tidal power in the state has real potential as well, although projects are still at an experimental stage. Technological advances in hydro power enable existing impoundments to eek out more electricity, which would also qualify as incremental new renewable generation under this legislation. Enough new renewable energy generation will come online to meet the requirements in the next decade if the policies, such as long term contracts, forged by the state promote their development.
Getting more clean energy generation in Maine is key to protecting our air and water from mercury, smog, haze and global warming pollution, and bolstering our in-state energy supply and local economies. Increased generation from existing and new clean energy projects will limit the number of days that the Wyman Station oil-burning plant needs to run to satisfy peak demand. The corresponding cut in pollution is significant, and the reduced cost to consumers should also be significant. Locking in a reasonable price for electricity in 3-20 year contracts without concerns about fuel supply or price will also benefit customers in Maine.
On the November 2004 ballot, voters in Colorado approved a similar goal for new clean energy through a renewable energy standard 53 percent to 47 percent. Amendment 37 would gradually increasing renewable energy generation from wind, solar, geothermal, clean biomass and low-impact hydro to 10% of electricity generation by 2015. A Union of Concerned Scientists report showed that Amendment 37 would save consumers $236 million by 2025, while creating 2,000 new jobs and boosting the economies of rural Colorado towns.
Again, I would like to reiterate Environment Maine’s support for promoting new clean renewable energy through long-term contracts. Developing more clean renewable energy generation is a large piece of a smart, clean energy future.
Sincerely,
Matthew Davis
Advocate
