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Settlement Talks on CMP Project Questioned ; Some Parties See Political Pressure That Could Subvert the Proper Legal Process.
Wednesday, September 30, 2009 12:51 PM


(Source: Portland Press Herald)trackingBy TUX TURKEL

At a confidential meeting today, parties including the staff of the Maine Public Utilities Commission and Central Maine Power Co. will seek ways to settle CMP's landmark request for a $1.4 billion upgrade of its transmission system.

But two prominent parties in the case say the settlement attempt - initiated at CMP's urging - reflects political pressure by the utility's parent company and threatens to short-circuit a legal process that's meant to test whether the project is necessary in its proposed form.

They also say that Gov. John Baldacci's wind power trade mission to Europe last week, and statements the governor made during the trip, send a message that Maine's energy future depends heavily on the approval of the transmission line, which would directly benefit Iberdrola, the Spanish owner of CMP's parent company, Energy East.

"My concern is that the vast amount of money at stake has resulted in Iberdrola and Energy East putting a great deal of pressure on the governor and his energy staff," said Anthony Buxton, a lawyer representing paper mills and other businesses. "I'm concerned the PUC staff is trying to drive a settlement with CMP, without the opportunity of full hearings under oath."

Buxton, one of Maine's top energy lawyers, has decades of experience with regional utility matters. He represents the Industrial Energy Consumer Group in the CMP case.

Another party in the case, Richard Silkman, says that CMP is pushing for a settlement in hopes of getting the transmission upgrade approved before the influence of Baldacci, a vocal supporter, wanes as he enters his last year in office.

"He's their biggest cheerleader," said Silkman, a former state planning director. "This is the horse they need to ride to get them across the finish line."

Silkman has been involved with energy matters for 25 years and is a partner in Competitive Energy Services in Portland. He developed a wind power project last year in Freedom. He is now proposing an unconventional, solar-power alternative to CMP's project, called Grid Solar, so he is a key adversary in the case.

The charges are noteworthy because of the amount of money hinging on the PUC's decision. The $1.4 billion cost of the transmission system upgrade would be shared by ratepayers across New England, with Maine residents paying 8.3 percent.

Approval would be a windfall for CMP and Energy East.

Transmission projects receive a rate of return set by the Federal Energy Regulatory Commission. CMP has annual net income of about $55 million.




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