The Maine Public Utilities Commission has decided to open an investigation to explore alternatives to the New England-wide regional wholesale power markets and transmission systems commonly referred to as “NEPOOL” and administered by ISO New England.

“Through this investigation we will examine the costs and benefits of the participation of Maine’s two largest utilities, Central Maine Power Company (CMP) and Bangor Hydro-Electric Company (BHE), in NEPOOL,” said Kurt Adams, chairman of the Maine Public Utilities Commission.

Maine Public Service Company, the utility that serves Aroostook County, is not directly electrically interconnected to New England regional transmission system, and not a part of NEPOOL. The PUC’s action was prompted by a resolve passed during the last Legislative session in response to a settlement reached by ISO New England, regional power generators and other parties, which will hike electricity supply rates in Maine over the next four years. That settlement, approved by the Federal Energy Regulatory Commission (FERC) on June 15, will cost Maine consumers more than $300 million.

Governor Baldacci and the Maine PUC oppose FERC’s decision.“This rate hike, which is related to electricity capacity costs and a case involving generators needed to meet reliability concerns in Connecticut, will harm Maine consumers and provide little benefit,”Adams said.

In a separate decision by FERC, electricity transmission rates will increase next month as a result of increased costs in Southern New England. Under a ruling issued in 2004 and opposed by the Maine PUC, Maine consumers must pay for upgrades to the New England regional transmission system even though the upgrade primarily benefits other states. The regional transmission rate portion of CMP and BHE’s delivery charges will increase 30% and 17% respectively, with a total price tag of $22.7 million for consumers. "Most of these costs are associated with reliability measures and investments in Southern New England, for which Maine consumers will receive little, if any, benefit,” continued Chairman Adams."The Legislature has voiced serious concerns with the fairness of the regional regime, and at their instruction, next month, the public will have its chance to speak to the issue,” Adams said. The resolve directs the MPUC to consider whether continued participation in NEPOOL still makes sense for Maine consumers and to explore alternatives, including a potential partnership with Canada.The deadline for initial public comment to the MPUC is July 10, 2006.