With 6,600 jobs lost in Maine’s manufacturing sector last year and high energy costs often cited as a reason for mill shutdowns or downsizing, Gov. John Baldacci is right to elevate the visibility and importance of energy policy with the creation of the Governor’s Office of Energy Independence and Security. Despite the lengthy name, the office is really just one person, Beth Nagusky. Despite media scrutiny of her credentials and motives, Ms. Nagusky brings a varied background to the job, which is a good thing.
True, Ms. Nagusky has worked most recently as a lobbyist for the Independent Energy Producers of Maine, a group of small energy generators, many of them hydroelectric facilities. But, she previously worked for the Public Utilities Commission and the Natural Resources Council of Maine. These differing experiences should serve her well in her new post. Ms. Nagusky also helped draft the Maine Sensible Transportation Policy Act and therefore understands the need to reduce energy use by and pollution from vehicles.
In addition to her impressive credentials, Ms. Nagusky also has another critical skill necessary to get things done in Augusta – the ability to work with and persuade people to follow a chosen course of action. Environmental groups are right to be concerned that the former hydro-power lobbyist could – and they emphasize it is much too early to tell if this will come to pass – advocate too strongly for the interests of hydro generators. But, Ms. Nagusky herself has said energy production decisions are clearly a balancing act, in the case of hydro the balancing of the need for clean, renewable energy with the preservation of fish, their habitat and water quality.
For those who say the office is a waste of money, having energy decisions now spread among nine government agencies is not the wisest use of resources. In addition to bringing energy policy analysis under one roof, the office aims to find at least $1 million in energy savings in state government in the next two years.
While much of the talk of energy conservation and production focuses on the environmental gains, there are clear economic benefits to promoting alternative sources and efficiency. A recent survey of Maine business leaders by Critical Insights found that energy costs had a large negative impact on companies doing business in Maine. Energy costs ranked third, behind health care, taxes and workers’ compensation costs, as the most negative factors mentioned in the survey. If energy costs, which are higher in Maine than most other states, can be brought down, more businesses will stay and, possibly, move to Maine. The new office also aims to spur economic development by making Maine a receptive home to renewable energy businesses and spin-off industries, such as a manufacturing plant for wind turbines.
It all adds up to the wise use of $80,000.
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