HOULTON, Maine — Electricity customers of Houlton Water Company received a bit of good news in July as the energy business announced a new lower rate was in the works.
Greg Sherman, general manager for the company, said in a letter to customers that a new lower rate was made possible thanks to the creation of a transmission line and substation that connects the Houlton company directly to New Brunswick Power.
At a cost of $8.9 million, the construction project is one of the largest undertakings by the utility company in recent memory, and is something Houlton Water Company officials have been considering for decades, Sherman said.
Prior to its completion, Houlton Water Company received its electricity through a line owned by Versant Power (previously Emera Maine and Maine Public Service).
“The transfer from the existing transmission system to the [New Brunswick Power] system will result in an annual savings of over $1.5 million for HWC and also enhance the reliability of the HWC system,” Sherman said. “These cost savings are avoided transmission costs associated with the Versant System.”
The construction of a new transmission line and substation was an eight-year project, requiring numerous permits on both sides of the U.S.-Canada border.
“We are appreciative of all the expert assistance received from both sides of the border on banking, legal, consulting engineering and the unwavering support of the HWC employees and board of directors past and present,” Sherman said. “In addition, without NBP management and staff’s enthusiasm, cooperation and expertise, the project would have not been fully permitted and completed.”
According to Sherman, not only will the new line benefit Houlton Water Company customers, but also the remainder of Aroostook County customers of Versant, Van Buren Light and Power and Eastern Maine Electric Cooperative because their transmission line reliability should improve since resources are no longer needed for Houlton.
The direct line will not only save company customers money, it should also enhance the system’s reliability. Sherman said the new transmission line is a shorter distance from NBP to Houlton than the previous line. A new substation and transformer also replaced older equipment.
Houlton Water Company has also entered into an agreement with Versant Power to have a backup line available.
“We will now have two sources of transmission feeds versus one single source,” Sherman said. “This configuration with two transmission paths should lessen the risk that HWC customers will experience extended outages.”
Sherman estimated that the yearly savings for the average residential customer should be about $100 per year. In addition, the company entered into a new Standard Offer agreement for energy supply, lowering the electricity rate for its customers to 0.06625 cents per kilowatt hour. That reduction should result in an additional savings of about $5.50 per year for customers.
“Saving money and improving reliability for our customer is primary for our mission and existence,” Sherman said. “The project completion is a win-win for Aroostook County, our community and all of our customers.”
