Maine PUC Approves Long-Term Contracts at BHE

The Maine PUC directed Bangor Hydro-Electric to enter into long-term contracts for energy with three Community-Based Renewable Energy Projects.

The project are: Jonesport Wind, LLC, a 4.8 MW wind facility to be constructed in Jonesport, Maine; Lubec Wind, LLC, a 4.8 MW wind facility to be constructed in Lubec, Maine; and Pisgah Mountain, LLC, a 9 MW wind facility to be constructed in Clifton, Maine.

"We are sensitive to the potential burden that these contracts may place on BHE ratepayers," the PUC said.

"The proposed contract prices are above current wholesale market prices for electricity and the difference between contract prices and the price at which BHE will be able to sell the electricity into the wholesale market will be borne by BHE ratepayers. We note, however, that these projects are relatively small wind projects with projected capacity factors below the capacity factors of other potential renewable energy projects such as biomass. Although the incentive rate per kilowatt-hour permitted as part of the community-based pilot program exceeds current wholesale prices, the lower capacity factor associated with wind projects serves to mitigate the overall economic impact in the BHE service territory when compared to alternative community-based renewable project development," the PUC added.

Lubec and Jonesport bid a fixed price for a 20-year term of 8.5 cents per kilowatt-hour. Pisgah bid a fixed price for a 20-year term of 9.3 cents per kilowatt-hour.

The approved contracts are for energy only, accepted at the bid prices.