Massachusetts Ratepayers Hit with Shocking $512M Burden for Controversial Canadian Hydropower Project
Three Massachusetts utilities, along with Central Maine Power’s parent company, have agreed to allot an additional $512 million to Massachusetts ratepayers due to construction delays in a Maine power transmission project. This project is designed to transport Canadian hydropower to the New England power grid. Despite the increase in costs from $1 billion to $1.5 billion, largely due to inflation and procedural delays, proponents maintain that the project presents substantial long-term savings and environmental benefits. Massachusetts State Sen. Michael Barrett emphasized the project’s promise of providing clean energy at a competitive rate, saying that such low prices might not be feasible in the future.
The Massachusetts Legislature approved passing most of these extra costs onto ratepayers, with consent from the state’s Department of Energy Resources and attorney general’s office. They submitted their agreement for the state Department of Utilities’ approval. Notably, Avangrid, Central Maine Power’s parent company, chose not to seek reimbursement of $100 million spent during legal challenges and a referendum that initially halted progress.
Supporters argue that the project, providing 1,200 megawatts, will reduce electric rates regionally, cut carbon emissions, and assist in meeting Massachusetts’ clean energy targets. Completion is anticipated between late next year and 2026 summer. Financially, Massachusetts ratepayers are expected to save about $3.4 billion over the 20-year contract. Additionally, the hydropower usage would lower carbon emissions at a rate equivalent to removing 660,000 cars from the roads.
Despite overcoming a voter referendum that initially stalled the project, the endeavor faced resistance from environmental groups due to a new section of the line needing to be cut through the woods to reach the Canadian border. However, the transmission line ultimately gained all necessary regulatory approvals, and supporters look forward to its operational benefits.
Original Story https://www.livemint.com/news/massachusetts-ratepayers-to-pay-extra-512m-for-transmission-line-for-canadian-hydropower-11730320929646.html
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