This is an important agreement for both Maine electricity customers and for First Wind. Maine electricity customers will receive the benefit over a 20-year period of clean, renewable power at a price that will help keep energy costs low. That will provide protection against the fluctuating prices of power produced by fossil fuels.
In addition the Rollins project will create about 300 construction jobs, six-to-eight full-time jobs and will generate enough clean power for about 23,000 homes.
We appreciate the hard work the PUC has invested in this agreement and look forward to being able to bring the Rollins project online.
About First Wind
First Wind is an independent North American wind energy company focused exclusively on the development, ownership and operation of wind energy projects. First Wind is headquartered in Newton, Massachusetts. For more information on First Wind, please visit www.firstwind.com or follow us on Twitter @FirstWind.
MAINE PUBLIC UTILITIES COMMISSION
NEWS RELEASE
Long-term electricity supply contract approved at Maine Public Utilities Commission
Today the Maine Public Utilities Commission unanimously approved Maine’s first long-term electricity supply contract: a 20-year contract with First Wind Holding LLC (wholly owned subsidiary of Evergreen Wind Power III, LLC), a wind developer which presented a bid for its 60-megawatt Rollins project in Penobscot County.
The company met the criteria for Commissioners approval including energy and capacity benefits, adequate hedging against high energy prices from fossil fuels, and diversity in Maine’s energy supply. The Commissioners directed Central Maine Power and Bangor Hydro Energy to share the contract in an 80% (CMP)/20% (BHE) split. The decision will be final with the completion of the written order.
“This is good news for ratepayers and renewable energy development in Maine,” noted Commission Chair Sharon Reishus. “The First Wind contract makes it possible for Maine ratepayers to gain energy supply cost benefits from as renewable energy resource, and the company gets the financial assurance the contract provides to become fully operational.”
Commissioners considered the specific terms of the wind project contract, the value of wind power in Maine, and the analyses of staff, Commission consultant and the two involved utilities. The Public Advocate’s Office submitted comments in support of the project. Chair Reishus explained, “We believe this an appropriate time to accept a bid which provides cost benefits to ratepayers based on the analyses we received. This is a good first step and we look forward to other contracts coming forward.”
This is the first long term contract to be approved since electric restructuring in 2000. The Commission was given the authority by the Legislature in 2006 to direct electric utilities to enter into long-term electric generation contracts in order to bring cost benefits to Maine ratepayers by providing: lower electricity supply costs for Maine consumers; increase in renewable capacity; a hedge against market prices of electricity; an offset of costs resulting from new transmission; and, a lower cost alternative to new transmission investment.
After a thorough process of rule-making, proposals request drafting and public comment, long-term contract RFPs were issued in December 2008 and the first contract proposals were received for consideration in April 2009. In an extensive stakeholder process, Commission technical experts and a 3rd party consultant worked to get the best deal the applicants could give by evaluating proposals, carefully analyzing bids, and conducting detailed negotiations with bidders. The consideration of other long-term contract proposals continues at the Commission.
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The Maine Public Utilities Commission regulates electric, telephone, water and gas utilities to ensure that Maine citizens have access to safe and reliable utility service at rates that are just and reasonable for all ratepayers. Commission programs include Maine Enhanced 911 Service, Dig Safe, and Efficiency Maine.
For more information, contact:
Maine Public Utilities Commission
Evelyn deFrees
207-287-6141
evelyn.defrees@maine.gov
First Wind
John Lamontagne
Director, Communications
617-964-3340
jlamontagne@firstwind.com
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