Smart Grid and Clean Energy Thrive in Maine’s Competitive Market

Maine’s competitive electricity market is thriving, evidenced by several recently announced economic and environmental initiatives creating benefits for the state’s consumers.
 
To start, a major smart grid investment by one of the state’s incumbent utilities has laid the foundation for multiple innovative new energy management technologies. Central Maine Power (CMP) recently broke ground on the $1.55 billion Maine Power Reliability Program, which will include 450 miles of new and upgraded power lines, energy efficiency programs and various smart grid pilot programs. The investment coincides with the start of an effort to install 620,000 smart meters across the utility territory.
 
CMP’s investments once again show the power of competitive markets to drive investment through accurate price signals, and given healthy switching rates in the state, exactly how competition encourages power suppliers to provide the best possible service at the most competitive cost in order to attract and retain customers.
 
State regulators are also exploring ways to provide regulatory oversight and coordination of this burgeoning industry by considering the creation of a smart grid operator, according to a recent Electric Power Daily article. The operator would function much like a regional transmission organization, and help coordinate demand response, distributed generation, battery storage and other distributed resources at a sub-transmission level.
 
Maine’s smart grid developments are also paving the way for new types of clean energy generation to integrate onto the grid. Already home to half of the proposed wind power projects in New England, a tidal power developer recently reported successful operation of a commercial-sized underwater energy turbine. The 60-kilowatt turbine would be the largest ocean energy power plant ever installed in U.S. waters, and is on track to connect to the grid by the end of 2011.
 
Competition’s benefits are not limited to innovative smart grid and clean energy technology. Consumers are taking full advantage of the ability to shop for power suppliers in a competitive market. The Manufacturers’ Association of Maine (MAM) recently named Constellation New Energy as the preferred energy supplier for its 360 manufacturing, corporate, affiliate and student members. “We are very excited to be…offering this electricity supply program to our members because it provides access to valuable information on the electricity procurement options and the competitive energy marketplace,” said Lisa Martin, MAM executive director, in a Restructuring Today article.
 
The city of South Portland also recently announced it plans to become the state’s fifth power marketer. It will establish South Portland Energy, a wholesale account with ISO New England, to market power to commercial, industrial and small business, and residential customers in the city.  
 
These new developments in Maine underscore the power of competition. The state’s competitive electricity market is attracting new investment, promoting customer choice, and enabling clean energy solutions to thrive.