Radio Address: Augusta Ignores Energy Prices ? And You Pay the Bill

October 25, 2016

(MP3 Audio)

Special interest groups try to make energy policy complicated. We must create fair policies that work for energy producers as well as consumers.

Hello, this is Governor Paul LePage.

For decades, Augusta has been giving carve-outs for whatever fancy new form of energy pops up. The lobbyists say we can save the world and grow jobs if we just pass more mandates and hide more fees on your electric bill, all while encouraging above-market rates.

They force you to buy electricity at high rates and then hide the football in your electric bill. But businesses have told us our electric prices are too high to be competitive, so they are going elsewhere. Even worse, they say they are closing down.

Prices are very important to our business, large and small. Big employers like Texas Instruments and Bath Iron Works tell us that Maine needs to lower its electricity costs.

My Administration has worked to lower the price of electricity, but Democrats and special interests try to confuse the debate. However, the Maine people know electric prices are important to their monthly expenses.

Now in Augusta, special interests are trying to increase your electric bill again. That?s because a number of individuals are producing their own power. Hancock Lumber is producing electricity with a biomass combined heat and power unit. Bowdoin College has installed a large solar project.

These investments can reduce prices for all electric customers, especially during high energy consumption days. The question is: what should they be paid if they sell excess power?

The obvious answer is ?market prices.? Electricity producers should be paid market prices for the power they generate. But they want to avoid paying the fixed costs of the electric transmission and distribution system and have the rest of us pick up higher costs on our bill.

That is wrong. These companies are still using the electric transmission and distribution system when their electricity production stops. By avoiding these costs, it would increase costs on low-income families and our struggling businesses.

This isn?t about solar or biomass or any other form of energy. This is about creating basic fairness for all users of our electric grid. It?s about keeping energy costs down. Thousands of Mainers struggle to pay their high electric bill every year, including seniors who live on fixed incomes.

Quite simply, we should pay market prices to producers of electricity. Then everyone benefits from more small electric generation, not just the special interests.

I encourage you to contact Augusta. Tell the Public Utilities Commission to fairly compensate electric producers, but not at the expense of our low-income households and our struggling businesses. Please tell the PUC how important lowering electric bills would be for your own household or your business.

Thank you for listening.