In the aftermath of PURPA: The future of the biomass energy industry in Maine
- Marine State Planning Office, Augusta, ME (United States)
During the 1980`s the biomass power industry in Maine grew to nearly 500 MW of installed capacity in 21 cogeneration and stand alone plants. By 1992 these plants consumed four million tons of woody fuels annually, while providing 25% of the states` electricity supply. Moreover, this new industry supported over 2500 jobs throughout rural Maine, generated substantial local property taxes and provided a critically need management option for forest management and mill waste disposal. All of this capacity was developed by non-utility generators as Qualifying Facilities (QF) under PURPA rules. Most power contracts were fixed price, must take agreements guided by avoided cost calculations that assumed high future costs for energy alternatives. Circumstances have changed. Historically low oil prices, economic recession, and rising electricity rates have made biomass fueled power plants some of the most expensive sources of electricity on the power grid. Utilities are responding to rising rates, to public and political pressure to control costs and lower rates by seeking to renegotiate or buy out power contracts and closing biomass plants. While there are strong demands to control electricity costs, there are equally strong concerns about losing the benefits that accrue from the use of indigenous renewable resources. This article evaluates the actions of Maine utilities, independent power producers, the Maine Public Utilities Commission, and the Main Legislature related to PURPA contracts and their likely effects on the future of the biomass power industry in Maine. In particular, we will describe Maine`s new Electric Rate Stabilization Program and subsequent efforts of the Executive Branch to mediate a compromise solution in one case of a utility buy out of a biomass power plant.
- Research Organization:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- OSTI ID:
- 115719
- Report Number(s):
- NREL/CP-200-8098; CONF-9508104-; ON: DE95009230; TRN: 95:006736-0133
- Resource Relation:
- Conference: 2. meeting on biomass of the Americas, Portland, OR (United States), 21-24 Aug 1995; Other Information: PBD: [1995]; Related Information: Is Part Of Second biomass conference of the Americas: Energy, environment, agriculture, and industry. Proceedings; PB: 1741 p.
- Country of Publication:
- United States
- Language:
- English
Similar Records
Power Sales to Electric Utilities
Designing PURPA (Public Utilities Regulatory Policies Act) power purchase auctions: Theory and practice. [Buys from cogenerators and small power generators]