HWC will build direct electricity connection
Houlton Water Company officials announced Nov. 28, 2016 that the Maine Public Utilities Commission (MPUC) has granted them the right to build a direct electricity line connection to New Brunswick Power (NBP).
The HWC originally filed with the commission on May 13. Hearings and technical conferences occurred throughout the summer, ending with the MPUC hearing examiner issuing a recommendation for approval on Nov. 4. On Nov. 22, the three MPUC commissioners issued the final decision, granting HWC the approval required to construct and finance the tie-line. In the very near future, the local utility anticipates a written order from the Commission verifying the decision.
New Brunswick Power will obtain the necessary permits on the Canadian side of the border and construct a 69 kW transmission line from Woodstock, N.B., to the border at Houlton. A 69/34.5 kV substation will be constructed on the Canadian side of the border and will connect to a short 34.5 kV line to the HWC system.
According to HWC General Manager John Clark, the cost of the project to HWC ratepayers will be approximately $5.4 million in U.S. dollars, paid over a 10- or 15-year period (yet to be determined). The company anticipates the project will be completed and be online by the latter part of 2018.
HWC is presently connected to the Northern Maine transmission grid owned by Emera Maine. The intent is to disconnect from the Emera Maine transmission system and connect directly to the NBP transmission system, thereby becoming a network transmission customer of NBP, Clark explained.
HWC anticipates from its analysis that its customers will see a net savings from being connected to the NBP system rather than the Northern Maine grid. This conclusion is driven by MPUC filings by Emera Maine to invest $65-70 million of improvements into the northern Maine grid over the next five years.
“If we stay on northern Maine transmission system, the projected investment will drive costs up much higher for HWC customers. HWC leaving the Northern Maine system will result in our customers saving millions of dollars in future years,” Clark said.
The cost of paying the debt for the new line and the NBP tariff will be less than Emera present day charges to HWC and much less than projected future charges. Once the debt for the new line is
paid off, the transmission cost for HWC customers will drop dramatically.
With HWC leaving the Emera Maine transmission system, there will be additional benefits to the customers remaining on the northern Maine transmission system, such as the additional transfer capacity between Emera Maine and NBP and the avoidance of additional transmission upgrades that would be necessary if HWC were to stay, Clark said.
“So HWC leaving is a win-win scenario — a win for northern Maine and a huge win for HWC customers,”
he said.
