Energy Policy

Background

MPPA member mills have invested significant dollars to reduce energy and electricity costs, including conversions to carbon-neutral biomass fuels; installation of highly efficient co-generation units that supply electricity and steam for production processes; high efficiency pumps and motors; and high efficiency lighting systems.

Many of Maine’s mills participate in ISO-New England Demand Response programs that provide a critical service in meeting New England’s energy needs in times of electrical generating shortfalls or peak demand.

Maine and New England continue to have the highest electricity costs of any region in the country. The Maine Development Foundation Measures of Growth report for 2009 lists the cost of energy as a “red flag” issue, cites an index showing Maine’s retail cost of electricity as 32% higher than the nation as a whole, much higher than the 16% difference in 1990. State policy decisions account for a portion of these cost imbalances.

Legislative Issues

MPPA supports the siting of new, low-cost electrical generating facilities, LNG terminals and other new base-load generation including renewable energy sources.

MPPA supports use of Maine’s Regional Green-house Gas Carbon Trust Fund to help finance cost-effective energy efficiency projects at manufacturing plants.

Any efforts to require the industrial sector to address emissions of greenhouse gases need to move forward at the national rather than the regional level in order to avoid penalizing Maine industry.

MPPA supports funding for any need-based electrical infrastructure upgrades that do not encompass market subsidies or allocations that could unfairly impact large industrial users in Maine.