HOULTON, Maine — The Houlton Water Company has successfully appealed a Public Utilities Commission decision to the Maine Supreme Judicial Court on the joint venture between First Wind, Emera Maine and Algonquin Power of Canada.
In a court ruling dated March 4, the Houlton Water Company, along with the Industrial Energy Consumer Group and the Office of the Public Advocate, were victorious in having the financial partnership reversed by the court.
The groups formed a joint venture three years ago, when Bangor Hydro (now known as Emera Maine) purchased Maine Public Service and wanted to buy a portion of First Wind and Algonquin Power and Utilities of Halifax, Nova Scotia.
That union was approved by the PUC in 2012.
According to John Clark, president of the Houlton Water Company, that union violated state law.
“We (HWC) looked at this case and felt it was against state law,” Clark said. “We intervened in the case along with the two other parties. There is a state law that says a T and D (transmission and distribution) utility, you cannot own a generation business. That was all part of the Electric Industry Restructuring Act back in 1999-2000.
The Supreme Court justices found that the approval violated the intent of Maine’s restructuring law to separate electricity generation and transmission. The ruling sends the matter back the PUC to do a more intense re-examination of the union between the energy parties.
The Portland Press Herald reported on April 2 that the decision could put a financial strain on First Wind and may impact the company’s ability to continue forward with its wind farm project in Oakfield.
Briefs will be submitted to the PUC by mid-May, at which time that group will give the matter “a thorough and thoughtful review” and a new ruling will be handed out.
Clark said the arrangement between Emera, First Wind and Algonquin could have a financial impact on HWC’s customers in the future.
“The reason for the law is they do not like T&D utilities to own generation because they can then show favoritism,” Clark explained.
He used the example of a transmission company who may want to build a generator in a certain location, and that company may happen to have a transmission line close to that location.
“That company would be able to outprice the competition,” he said. “Generation was taken away from T&D utilities to take the risk away from rate payers and put it on the stockholders for the construction and generation. If you de-regulate it, there are chances for mischief to occur.”
