Down East power connection

Bangor Hydro-Electric’s recent decision to pursue permitting and construction of the Northeast Reliability Interconnect (NRI), a new 345-kilovolt transmission line connecting Maine to New Brunswick, is good news for Maine, particularly Down East. As manager of compliance and technology at Domtar’s Woodland pulp and paper mill in Baileyville, Washington County’s largest employer, I enthusiastically support construction of this transmission line.

Unlike most of Maine, much of Washington County does not benefit from restructuring of the electric utility industry that took place in Maine in the late 1990s. The more northerly half of Washington County receives electricity from the Eastern Maine Electric Cooperative, an excellent service provider to area residents, business and industry. Because EMEC does not produce electricity, the co-op must purchase all of the electricity it provides to its customers.

EMEC does not have a physical connection to the United States electric grid and purchases all of its electricity for resale from New Brunswick suppliers. So while most of Maine is able to benefit from a competitive electricity marketplace, in our region we have not seen the same advantage.

Not having access to a U.S. electrical grid prevents facilities such as Domtar’s Woodland mill from buying electricity on the competitive market and it prevents the mill from maximizing returns on the sale of excess electricity.

As a means to control electrical costs for ratepayers, investment in generating capacity to meet peak demands is often postponed. Rather, utilities look at more innovative ways of meeting peak energy demand periods. One common strategy for meeting peak demands is to purchase electricity from industrial facilities such as pulp and paper mills. However, without a connection to the electrical grid, such sales for Domtar’s Woodland mill are impossible.

I find it interesting that on certain occasions many industrial facilities throughout the U.S. find it financially advantageous to temporarily halt manufacturing production and export the power to the grid rather than use self-generated electricity. That opportunity is not available to facilities not connected the U.S. electric grid.

Utilities are willing to pay higher than normal costs for electricity on a short-term basis to meet peaking demand rather than invest very large sums to generate new electrical generating capacity. This opens new opportunities for facilities with electricity generating capacity and a means to move that electricity onto the electric grid and out to consumers.

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Domtar’s Woodland mill is uniquely situated with hydro and biomass resources to provide limited relief to regional utilities. All we lack is the critical connection to the electrical grid.

A recent proposal by a partnership that includes the Passamaquoddy Tribe to develop a liquefied natural gas (LNG) facility at Pleasant Point opens even more opportunities for Washington County. Development of an LNG facility will complement the proposed electrical transmission line. With additional gas supplies into our region, co-generation opportunities can be explored, offering substantial benefits to Washington County’s fragile economy.

Bangor Hydro’s efforts to build a new transmission line will bring a high-capacity connection to the doorsteps of Washington County residents. Along with an interconnection (substation) in Washington County, businesses planning to expand or locate operations in our area will be assured of adequate electrical supply and service.

Economic diversification and job development depend on a steady and stable supply of electricity. The proposed line, when completed, will offer the needed resource for all electricity consumers.

Bangor Hydro undertook a comprehensive stakeholder process to identify what criteria need to be considered to ensure the new transmission line is placed along the best route. The stakeholders group looked at a broad range of environmental and socio-economic concerns and impacts and helped Bangor Hydro develop and analyze the proper items to be considered for each of the various routes considered.

One of the routes considered by Bangor Hydro and the stakeholders group was a route that essentially follows the existing MEPCO line. I strongly believe that a transmission line essentially “mirroring” the present MEPCO line does little to offer increased economic value to Maine. The proposed route meets the test of providing potential and needed economic benefits to Down East. Connecting our region with the U.S. electric grid can be compared to the foresight shown in 1947 when the Maine Turnpike connected our state to the (then) remaining 47 states, allowing an improved flow of goods and services to greatly enhance Maine’s economy.

In an equally important way, a new transmission line, along with an interconnection facility, will provide the same benefit to Down East Maine.

C. Scott Beal is manager of Compliance and Technology at Domtar’s Woodland Mill in Baileyville.