PORTLAND, Maine (AP) — In a significant development, three utilities from Massachusetts, along with Central Maine Power’s parent company, have reached an agreement stipulating that Massachusetts ratepayers will face an additional burden of $512 million. This unexpected cost stems from construction delays of a major power transmission project in Maine, crucial for facilitating the flow of Canadian hydropower into the New England power grid.
The ambitious project is designed to supply enough clean energy to power around 1 million homes, and proponents asserted on Wednesday that it still constitutes a favorable deal for both ratepayers and the environment, despite the financial setbacks. “Even with these unanticipated costs, this is clean energy at a pretty good price. I’m not sure we’ll be at prices this low in the future,” stated Massachusetts state Sen. Michael Barrett of Lexington, who co-chairs the Legislature’s Telecommunications, Utilities, and Energy Committee.
The total cost of the project has surged from an initial estimate of $1 billion to a staggering $1.5 billion. This escalation is attributed to inflation and opposition-related delays, necessitating state legislators to approve the allocation of most of these additional expenses to ratepayers late last year.
The Massachusetts Department of Energy Resources and the attorney general’s office endorsed the agreement, which was submitted to the state Department of Utilities for review on Monday. Notably, Central Maine Power’s parent company, Avangrid, chose not to seek reimbursement for $100 million spent in a protracted legal and referendum struggle, as confirmed by an official.
Supporters advocate that the project will deliver 1,200 megawatts of electricity, which is expected to drive down electricity rates across the region, reduce carbon emissions, and assist Massachusetts in achieving its clean energy objectives. Construction is projected to conclude by late 2024 or the summer of 2026.
“This transmission line should drive down overall electricity prices and deliver new, reliable power to Massachusetts and New England as we transition to clean energy,” remarked Elizabeth Mahoney, energy resources commissioner, alongside Liz Anderson from the attorney general’s office, expressing optimism about the future influx of clean hydropower.
Despite the financial and regulatory hurdles, Massachusetts ratepayers are projected to experience savings amounting to approximately $3.4 billion over the duration of the 20-year contract. Furthermore, transitioning to hydropower represents a significant reduction in carbon emissions, akin to removing 660,000 vehicles from the roads, as highlighted by Kim Harriman, Avangrid’s senior vice president for public and regulatory affairs.
The ambitious initiative by Avangrid, in partnership with Canada’s Hydro Quebec, encompasses a 145-mile (233-kilometer) power transmission line that primarily follows existing corridors. However, an additional 53-mile (85-kilometer) section had to be constructed through wooded areas to reach the Canadian border, resulting in outcry from environmental and conservation organizations.
The project faced numerous challenges, including overcoming regulatory obstacles and public opposition. Although it secured all necessary regulatory approvals, construction was temporarily halted after Maine voters rejected the project in a November 2021 referendum. Ultimately, a jury ruled that the referendum was unconstitutional, stating it infringed upon the developers’ vested rights.
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**Interview with State Senator Michael Barrett on Massachusetts Ratepayer Burden due to Power Transmission Project Delays**
**Editor:** Thank you for joining us today, Senator Barrett. Can you explain the recent agreement reached concerning the power transmission project in Maine and its impact on Massachusetts ratepayers?
**Senator Barrett:** Thank you for having me. The agreement signifies that Massachusetts ratepayers will shoulder an additional $512 million due to construction delays of a critical power transmission line that’s designed to bring Canadian hydropower into New England. While the financial burden is significant, it’s crucial to remember the long-term benefits this project will offer.
**Editor:** Can you elaborate on these benefits and why you still believe this project is favorable despite the rising costs?
**Senator Barrett:** Absolutely. The project is expected to provide enough clean energy to power around 1 million homes and deliver 1,200 megawatts of electricity. This influx of renewable energy is crucial for helping us lower electricity rates over time and meet our clean energy goals. Even with the unexpected costs, I believe we are securing clean energy at a price point that may not be available in the future.
**Editor:** The overall cost of the project has ballooned from $1 billion to $1.5 billion. What factors contributed to this surge?
**Senator Barrett:** The escalation can primarily be attributed to inflation and delays related to legal opposition. Our state legislators had to make a challenging decision to allocate the majority of these additional costs to ratepayers to keep the project moving forward.
**Editor:** Can you discuss the role of the Massachusetts Department of Energy Resources and the attorney general’s office in this agreement?
**Senator Barrett:** Both the Department of Energy Resources and the attorney general supported the agreement, which is now under review by the state Department of Utilities. Their endorsement reflects a consensus on the project’s long-term viability and its alignment with our state’s clean energy objectives.
**Editor:** when can Massachusetts residents expect to see the benefits of this project?
**Senator Barrett:** We’re optimistic that construction will conclude by late 2024 or the summer of 2026. Once operational, the transmission line should enhance reliability and potentially lower electricity costs across the region.
**Editor:** Thank you, Senator Barrett, for providing clarity on this important issue. We appreciate your insights.
**Senator Barrett:** Thank you for having me. I’m glad to shed light on this critical project for our state’s energy future.
