Government and Policy News

Failure to connect? Maine transmission line could spell peril for clean energy plans

A specific focus on sustainability appears to be the key to securing support and eventually achieving long-term infrastructure objectives.

Failure to connect? Maine transmission line could spell peril for clean energy plans
(Image by Michael Schwarzenberger from Pixabay )

By Andrew Heath

The potential failure of the billion-dollar New England Clean Energy Connect (NECEC) hydropower transmission line – supported by Hydro-Quebec and Central Maine Power (CMP) – illustrates the peril of moving forward with ambitious clean energy infrastructure initiatives without comprehensive public support.

The project’s fate was jeopardized after Maine voters in November 2021 came out against approving the lease of a one-mile stretch of land. And while Maine’s Supreme Judicial Court ruled on August 29, 2022 that the 2021 referendum vote violated the project developer’s constitutional rights and sent the issue back to the lower courts for further litigation, the dollars and discourse have continued to mount.

The referendum of the NECEC is the most expensive in Maine’s history and has reached more than $90 million in campaign spending—so far.

This article was previously published on sister website Power-Grid International.

The NECEC fumble is the latest example of what can happen when utilities do not incorporate customer sentiment into the strategic planning and execution of initiatives designed to meet long-term carbon-neutral objectives. It also shows the need for nuance. It is not enough for a utility–-or a group of utilities–-to be popular. Constituents must be onboard and invested in the outcome utilities hope to achieve.

According to the Edison Electric Institute (EEI), U.S. electric utilities are expected to invest $140 billion annually over the next several years on infrastructure projects to update their current power grids and implement the clean energy technologies needed to reach carbon neutrality. Success, however, will only be possible with the approval–and even advocacy–of customers who will be directly and indirectly affected by these strategic plans.

In the case of the NECEC, the environment should have been conducive for approval.

The New England region is one of the most supportive demographics in the country for tackling climate change. According to the J.D. Power 2022 Sustainability Index, the New England and Pacific regions lead the United States with the most customers who consider climate change to be serious (83% and 85%). The national average is 80% — up from our 2021 survey data.

A tale of two utilities

What has emerged since the discourse in Maine last November is that, ultimately, voters did not trust Central Maine Power (CMP) with executing the NECEC project. This lines up with J.D. Power research in which CMP had the lowest satisfaction score among the 88 U.S. utilities measured in the study.

If a utility cannot execute the delivery of basic services consistently, customers can be forgiven if they struggle with trusting a provider with ambitious initiatives. That said, when looking at renewable energy projects across the country, satisfaction is only part of the story.

Pacific Gas & Electric (PG&E) in California offers a stark contrast to CMP.

PG&E — like CMP — ranks low in satisfaction. But PG&E has secured strong customer support for its clean energy initiatives through dedicated messaging about its sustainability initiatives. As a result, the Northern California utility is seen by its constituents as being at the forefront of sustainability.

This specific focus on sustainability appears to be the key to securing support and eventually achieving long-term infrastructure objectives. It has emerged as a consistent theme in the J.D. Power Sustainability Index since 2020.

The index provides an industry benchmark that tracks and analyzes awareness, advocacy and engagement to measure the health of utilities’ sustainability efforts. Viewed through the lens of the Sustainability Index, it’s easy to see how the story of the NECEC in Maine played out the way it did.

Related: Lights out? New England grapples with issues brought on by the energy transition

Even though New England residents — along with California — lead the country in expressing concern about climate change, utilities in New England performed poorly on sustainability support. With a Sustainability Index score of 23.8 on a 100-point scale, utilities in the region were more than four points below the national average.

The conclusion is clear. Utilities must engage with customers to move the needle on sustainability awareness and support. Time is of the essence. More than 80% of U.S. investor-owned utilities have pledged to achieve 100% carbon reduction by 2050 — with some aiming for a 2030 target. Twenty-one states have set similar mandates.

The electric industry must ensure customers clearly understand sustainability objectives. While most utilities have set carbon-neutral goals, not all have clearly developed and independently reviewed plans. Even fewer have strategies to secure the support of their constituents. Sustainability is a factor that needs to be measured and considered just as carefully as customer satisfaction and climate change sentiment.

Those who don’t may find that their renewable energy plans fail to connect on the last mile.

About the author

Andrew Heath is senior director of utilities intelligence at J.D. Power