Energy corridor Developer pleased proposed law stops short of moratorium

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John Pollack
Telegraph-Journal

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Tension over a bill that would temporarily halt energy transmission developments in Maine has been eased as a revised version of the proposed law passed with overwhelming support Monday.

"This compromise will make us feel comfortable enough to continue with what we're doing in Maine and hopefully others will as well," Don Jessome said.

In mid-May Jessome, president of Transmission Developers Inc., a Toronto-based company proposing a $1-billion, 1,000-megawatt underwater transmission line from Wiscasset, Maine to Boston, had expressed concerns about Maine state bill 1485.

He was worried a clause in the bill, that would have prevented transmission projects from moving forward until the state can regulate such investments in its favour, would have discouraged the company's private investors from putting money behind the Maine project over others.

But Monday Jessome said he hopes the bill, which now only prohibits final building permits from being granted, becomes law.

"Ideally we would not want to see any moratorium," he said. "However, in the absence of a complete reversal on that, we're quite pleased with the strong support we've received from the legislative bodies."

John Kerry, director of Gov. John Baldacci's Office for Energy Independence and Security, said he hopes Baldacci will sign the bill into law as the governor has supported the bill thus far.

Monday the state senate passed the bill by a vote of 31 to 4, after 137 members of the House of Representatives had unanimously voted in favor of the bill Friday, though 14 other members were absent.

Members of both the Baldacci administration and the legislature spoke with various concerned parties, including Jessome, to do their best to maintain investment interest in the state, while ensuring the energy corridor potential is well studied before going forward.

"If there's a company that goes through the process and looks like it's ready to roll and there's a need for legislative action, the governor can call them back into special session," Kerry said. "Or the legislature itself can work diligently to complete their task in sufficient time for a company that might voice its opinion now and contemplate going into production in another state."

If the bill is signed, it would form a commission to study the issue and file a report by Dec. 2. The legislature would then have to create a law to regulate future corridor developments. This law, which would lift the moratorium, would come into effect in July 2010.

"Unless it were to be approved with an emergency designation," Republican Minority Senate leader Sen. Kevin Raye said. "In which case it could take effect immediately, but that required a two thirds approval."

But Raye said projects won't likely be shovel ready in that time frame.

Though Transmission Developers' project is tentatively scheduled to go in service in 2015, Jessome still has some concern, as he did in May, the building ban could be extended

Irving Oil Ltd. has maintained bill 1485 does not change its feasibility study of an energy corridor from New Brunswick, through Maine that would transmit wind and natural gas generated electricity and possibly natural gas and petroleum.

"We're still committed to this region," Irving Oil spokesman Daniel Goodwin said. "We're still committed to consulting both with New Brunswickers and Mainers about the opportunity in this project, so we intend to continue to do that."