One thing I can say about energy policy is that it’s a complex subject! But here’s a summary of the reasons to support Pine Tree Power. I hope you’ll find them compelling, and support the referendum with a “yes” vote on election day, November 7th.

1. Substantial savings through lower interest rates: Our electric grid needs substantial investment to meet our state energy and climate goals, an estimated $5 billion over the next 30 years.

The least expensive way to finance this investment is through municipal bonds, at 3% interest. Pine Tree Power is able to get these favorable rates. CMP and Versant have to borrow at much higher rates—about 10%.

The difference in interest rates amounts to savings of $9 billion dollars over the next 30 years. The average Maine household would save $365 per year.

2. Savings by eliminating profits: CMP and Versant also distribute substantial annual profits—$187 million in 2022—to their shareholders. Pine Tree Power is a nonprofit. It can use any excess revenues to lower rates or reinvest in the grid.

3. An incentive to serve Maine people: Electric utilities make most of their money by building big physical assets like transmission lines. So their incentive is to build big things, whether or not they benefit ratepayers or local communities. The Hydro-Quebec transmission corridor is a good example—very profitable for CMP, but with minimal benefit to Maine ratepayers.
With Pine Tree Power the incentive is purely to serve Maine people. Investments in grid reliability, customer service, economic development and renewable energy all become possible with Pine Tree Power.

4. An independent nonprofit: Pine Tree Power is structured as an independent nonprofit. It has no affiliation at with state government. Pine Tree Power is governed by a board of directors consisting of seven members elected by voters and six industry experts, appointed by the elected board. The experts are required to have knowledge of industry finance, operations and regulation—as defined in the referendum statute.

5. A professionally run operation: Pine Tree Power changes the ownership and financing of the utility, but not the management.

All current employees of Versant and CMP would be offered jobs with the new company. The union would be honored. The good work of local utility employees will be rewarded with a signing bonus.

6. A well vetted proposal: The views of Maine homeowners, renters, utility experts and businesses were carefully considered in crafting the referendum statute. Discussion of how to bring our electric power back under local control began in 2018. Two bills were presented to the legislature, with testimony from over 200 people. Over 86,000 Maine voters endorsed the petition.

7. The biggest risk: The biggest risk comes from CMP and Versant, who might use their deep pockets to spread misinformation and stall the legal process. Given that they have spent $30 million to date on ads intended to scare and mislead voters, this is a legitimate concern.

8. Your vote in November is important! Please join me in voting “yes” on election day, November 7.