PORTLAND, Maine — Three Massachusetts utilities and the parent company of Central Maine Power have agreed that Massachusetts ratepayers will bear $512 million in additional costs due to delays in construction of an electricity transmission project in Maine that will allow Canadian hydropower to reach the New England electrical grid.
Advocates said this on Wednesday the project aimed at providing enough clean energy to power about 1 million homes, still represents a good deal for taxpayers and the environment, despite delays and new costs.
“Even with these unexpected costs, this is clean energy at a pretty good price. I’m not sure prices will be this low in the future. So we have to grit our teeth, take on the additional costs and get on with it,” said Sen. Michael Barrett of Lexington, co-chairman of the Legislature’s Telecommunications, Utilities and Energy Committee.
The cost of the project rose from $1 billion to at least $1.5 billion due to inflation and delays caused by opponents, forcing the Massachusetts Legislature late last year to authorize most of the additional costs to be passed on to taxpayers .
The Massachusetts Department of Energy Resources and the attorney general’s office signed the agreement, which the parties submitted to the state Department of Utilities for approval on Monday. Central Maine Power’s parent company, Avangrid, has not tried to recoup the $100 million it spent in a legal battle and referendum, according to an official.
Supporters of the project say the 1,200 megawatts of electricity it provides would lower electricity rates across the region, reduce carbon pollution and help Massachusetts reach its clean energy goals. Developers previously said they expect the project to be completed by the end of next year, but there are provisions to push the completion date back further.
“This transmission line should reduce overall electricity prices and provide new, reliable power to Massachusetts and New England as we transition to clean energy. We look forward to clean hydropower flowing to our state soon,” said Energy Resources Commissioner Elizabeth Mahoney and Liz Anderson of the Attorney General’s Office.
Despite the change, Massachusetts taxpayers would save about $3.4 billion over the 20-year contract, and using hydropower represents the carbon reduction equivalent of taking 660,000 cars off the road, said Kim Harriman, senior vice president for Avangrid’s public and regulatory affairs.
Avangrid and Canada’s Hydro Quebec collaborated on the project, which called for a 233-kilometer electricity transmission line, much of which would run along existing corridors. But a new 53-mile stretch of forest had to be built to reach the Canadian border, something environmental and conservation groups decried.
The project had to overcome several obstacles.
It received all regulatory approvals, but work was halted after Maine voters rejected the project in a November 2021 referendum. A jury concluded the referendum was unconstitutional because it violated the developers’ established rights.