Maine and New Brunswick Sign Agreements to Partner in Electricity, Education

Date: Feb. 9, 2007
Location: Bangor, ME
Issues: Education Energy


Maine and New Brunswick Sign Agreements to Partner in Electricity, Education

Governor John Baldacci today signed a Memorandum of Understanding (MOU) with Shawn Graham, the Premier of the Province of New Brunswick, at a ceremony at Eastern Maine Community College. The MOU lays out a timeline to explore and set forth actions enhancing cross-border cooperation on electrical interconnections.

"Both Premier Graham and I have the privilege of living in communities rich and natural resources, like wind and tidal energy, that can generate emission-free electricity," said Governor Baldacci. "We also both produce an electricity surplus and want to ensure that we pay competitive prices for electricity."

Governor Baldacci said that Maine consumers are shouldering the burden of transmission and capacity costs for other states in New England. This prompted the Governor to join the Legislature in requesting that the Maine Public Utilities (PUC) study alternatives to benefit Maine.

"Maine's current arrangement with the ISO-New England presents a number of inequities, and I have a responsibility to think beyond New England and look to our neighbors in the North," said the Governor.

The PUC study found that there are no legal, economic or technical barriers to pursuing an electricity partnership with New Brunswick as an alternative.

"This partnership to develop and pursue an expanded clean energy market could help curb global warming by reducing carbon pollution and grow our respective economies," said Governor Baldacci. "This MOU is the beginning of a relationship that holds a lot of promise for Maine and New Brunswick. Together, we can expand the clean energy market, reduce carbon pollution all while creating new jobs and increasing the production of a clean environmentally-responsible product we can export to both countries."

Governor Baldacci and Premier Graham also witnessed an MOU signing between Dr. John Fitzsimmons, President of the Maine Community College System, and Michel Theriault, Assistant Deputy Minister and CEO of the New Brunswick Community College. The agreement outlines how these valued institutions will share knowledge, experience, and resources, enhancing efforts to meet the needs of our students and communities.

"I am encouraged by the opportunities to learn from each other as we expand our community college system to meet the needs of a growing and diverse population," Governor Baldacci said.

Maine's Community College System is experiencing tremendous growth and success. Enrollment has soared by 47%. Maine's community colleges are building new skills for a new economy, and a brighter economic future for the entire state.

"In an era driven by technology and innovation and a knowledge-based economy, it's important that we build these relationships with other regional systems," said the Governor.

"These new agreements demonstrate the spirit of partnership and co-operation between the State of Maine and the Province of New Brunswick," Premier Graham said. "Improving efficiencies of our electric systems should benefit consumers and the environment, for both New Brunswickers and Mainers. We are also excited about creating more opportunities for students and faculty through the collaborative work of the Community Colleges."

The text of the MOU on Electrical Interconnections follows.

Memorandum of Understanding Between The Province of New Brunswick And The State of Maine To Enhance The Mutual Benefits Of the Maine/New Brunswick Electrical Interconnections

WHEREAS, The State of Maine ("Maine") shares electrical interconnections with the Province of New Brunswick ("New Brunswick");

Maine also shares electrical interconnections with other New England states;

New Brunswick also shares electrical interconnections with the Maritime Provinces and Quebec;

New Brunswick and Maine each have located within their respective borders adequate and at most times abundant generation capacity;

New Brunswick and Maine export significant quantities of generation to southern New England for the benefit of all consumers;

New Brunswick and Maine each have abundant natural resources from which renewable energy, such as wind and tidal energy, can be harvested to generate electrical energy;

Maine and New Brunswick have each adopted policies to promote the development of renewable resources;

The northeastern United States needs new supplies of electrical energy, including renewables;

Maine and New Brunswick wish to expand opportunities for the mutual development and export of new electric generation capacity resources;

Maine and New Brunswick wish to increase the opportunities to transmit energy between the State and Province and to their neighbors in Canada and the United States;

Maine and New Brunswick wish to improve the efficiency of their respective electric systems and the interconnections between them to benefit consumers and the environment; and New Brunswick and Maine acknowledge the significance of climate change and recognize the importance of emphasizing the development and deployment of low emission electricity generation in the future.

NOW THEREFORE,

I, Shawn Graham, Premier of the Province of New Brunswick, and I, John Elias Baldacci, Governor of the State of Maine, do hereby enter into this "Memorandum of Understanding Between the Province of New Brunswick and The State of Maine To Enhance The Mutual Benefits Of the Maine/New Brunswick Electrical Interconnections" and do hereby agree as hereinafter set forth.

Maine and New Brunswick agree to explore expansions of generation capacity, including renewables, and transmission opportunities by agreeing to jointly undertake the following tasks:

1. Study the feasibility of expanding generation capacity and transmission infrastructure to increase electrical flows across borders;

2. Identify processes and systems to provide transparency and efficiency in Maine and New Brunswick markets;

3. Study the feasibility of developing common market rules that could be applied in Maine and New Brunswick;

4. Explore the potential benefits and technical and legal impediments to the common provisioning of control area services (including balancing, dispatch and reserve sharing);

5. Explore the tariff and governance structures required for a regional transmission organization for Maine and New Brunswick; and

6. Examine the opportunities for compatible greenhouse gas emissions reduction regimes in the electricity sector.

Maine and New Brunswick agree to dedicate sufficient resources from their respective state and provincial agencies for the completion of the tasks described herein. Maine and New Brunswick agree to appoint one person from each government to serve as each state's or province's, as applicable, point of contact (the "Joint Representatives").

The tasks are to be completed in two phases. Phase 1 work will overview the tasks, will assess priorities and possibilities, and will identify common principles (the "Principles") to guide additional work and any future implementation. The Joint Representatives shall deliver to their respective governments a report on the Phase 1 activities no later than June 1, 2007.

Upon completion of Phase 1, and agreement on the Principles, Maine and New Brunswick agree to proceed to Phase 2. It will be guided by the Principles and will complete detailed assessments of all tasks. The Joint Representatives shall present a final Phase 2 report to their respective governments no later than January 1, 2008.

Upon completion of the tasks identified above, Maine and New Brunswick agree to consider entering into a further agreement to implement mutually beneficial actions. Upon mutual consent, this further agreement may include other states or provinces.

Signed and delivered this 9th day of February, 2007.

_____________________________ Premier Graham Official Signature Block

_____________________________ Governor Baldacci Official Signature Block

http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&id=29687&v=Article-2006

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