Massachusetts energy officials have announced they're going with Plan B to bring Canadian hydroelectric power to the Bay State.
They've selected a back-up project that runs transmission lines through Maine, after New Hampshire state regulators refused to allow Plan A 鈥� the controversial Northern Pass project.
But the Maine project, known as New England Clean Energy Connect, also faces an uncertain future.
In Massachusetts, the announcement got kudos and criticism from those closely watching the state's selection of a massive clean energy project:
鈥淲e're pleased that the process is moving ahead and Northern Pass has been terminated,鈥� says Brad Campbell, head of the Conservation Law Foundation.
CLF vigorously opposed Northern Pass, for many of the same environmental reasons that caused New Hampshire siting officials to reject the Eversource project in February.
That rejection threw a wrench in Massachusetts鈥� utilities鈥� negotiations of a 20-year contract to buy Northern Pass鈥� electricity.
On Wednesday, Massachusetts officials pulled the plug on the proposal, and went with Plan B 鈥� to bring hydroelectric power from Quebec through Maine.
Massachusetts Department of Public Utilities will begin hearings into the New England Clean Energy Connect project at the end of April.
Its developer, Central Maine Power or CMP, is a subsidiary of international energy giant Avangrid and is the largest transmission provider in Maine.
Campbell says CMP鈥檚 project also poses environmental concerns 鈥� but they're manageable.
鈥淲e believe they can ultimately be addressed in the permitting process, especially given that roughly two-thirds of the line is in existing right of way,鈥� he says.
The $950 million Maine project would run 145 miles of new transmission lines from Canada to Lewiston, Maine, where it would hook into the regional grid.
THE MAINE EVENT
Dan Dolan is president of the New England Power Generators Association, which opposes any state mandate requiring utilities to buy clean energy.
鈥淚n our estimation, it's going to be one of the most expensive power contracts Massachusetts consumers will ever have to pay for,鈥� Dolan says.
He estimates wholesale electric rates for the Hydro-Quebec power could be double or even triple current prices.
Central Maine power spokesman John Carroll disputes those concerns.
He says all of New England recently helped pay for major upgrades that were needed for grid reliability 鈥� upgrades the Clean Energy Connect project would benefit from.
鈥淲e're able to plug into that and further leverage what New England has already invested in,鈥� Carroll says. 鈥淚t just makes the project more economical for everyone."
He says adding competition to the regional energy marketplace will drive prices down by billions of dollars.
But some here worry the project's design will make it harder for local solar or wind projects to tap into the grid. And the Natural Resources Council of Maine is firmly opposing the plan.
鈥淟ots of negative impacts on the ground, and no clear benefits to the climate,鈥� says the NRCM鈥檚 Dylan Voorhees.
He says so far, no one has offered hard evidence that Hydro-Quebec would actually provide new renewable energy to Massachusetts, rather than just shifting around existing capacity.
But Hydro-Quebec spokeswoman Lynn St-Laurent says the Massachusetts contract would drive down greenhouse gas emissions.
"We are absolutely convinced that this will bring [greenhouse gas] reductions,鈥� she says. 鈥淲e have additional energy available for sale to our export markets today. We have the capacity."
CMP says it expects to win state and federal permits in time for a 2019 groundbreaking.
NORTHERN PASS FIGHTS ON
The Maine utility鈥檚 victory in Massachusetts is a big loss for Eversource in New Hampshire.
The utility鈥檚 embattled Northern Pass proposal, to bring Canadian hydropower through the White Mountains, has a price tag of $1.6 billion. And a long-term deal with the Bay State would have helped pay for it.
But Eversource spokesman Martin Murray says this isn't the end.
鈥淢assachusetts is a large player in this game, but it鈥檚 one of six New England states,鈥� he says. 鈥淲hat we鈥檙e seeing is a growing demand and recognition that this sort of energy is desired.鈥�
For now, he says they鈥檒l focus on appealing for their final building permit, which the New Hampshire Site Evaluation Committee denied in February.
The appeal may end up at the state Supreme Court months from now. And longtime opponents aren't backing down. Here's Jack Savage of the Society for the Protection of New Hampshire Forests.
鈥淚 think everybody who鈥檚 been involved in this will stay extremely vigilant, making sure that Northern Pass doesn鈥檛 find some other way to suggest that they can go forward,鈥� Savage says.
Even if Northern Pass can get built, energy analyst Jim Bride says they鈥檒l need a new financial backer.
鈥淵ou can鈥檛 just build a project this big on [speculation],鈥� Bride says. 鈥淚t needs to be anchored by a long-term, credible off-taker.鈥�
But Bride says hypothetically, more than one Hydro Quebec-fueled project could exist in New England. Along with Northern Pass, the giant state utility had ties to other projects that lost out in Massachusetts this year.
鈥淭he entire process is driven by politics, less economics,鈥� he says. 鈥淪o if Massachusetts policy-makers decided they wanted more hydro, then there鈥檇 be space for another project.鈥�
Eversource and other developers may not have long to wait. Southern New England states are already planning their next big clean energy purchases.
This story was updated Wednesday afternoon with additional reporting from Maine Public Radio's Fred Bever and WBUR's Bruce Gellerman.
Copyright 2018
