Maine court ruling revives fight to continue Avangrid, Hydro-Quebec transmission line project

Published on August 31, 2022 by Kim Riley

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The Maine Supreme Court on Tuesday ruled that a $1 billion, 145-mile Avangrid Inc. electric transmission line project that will carry Canadian hydropower through Maine to Massachusetts should be reviewed by a lower court, reviving developers’ hopes to move the project forward.

The Maine court ruled that the November 2021 referendum blocking the New England Clean Energy Connect (NECEC) is likely unconstitutional, according to its Aug. 30 decision in NECEC Transmission LLC, et al, v. Bureau of Parks and Lands, et al.

“This unanimous decision by the Law Court is a victory for clean energy expansion, transmission development, and decarbonization efforts in Maine, New England and across the country,” according to a statement released yesterday by Avangrid, a sustainable energy company headquartered in Orange, Conn., with roughly $40 billion in assets and operations in 24 states.

Avangrid is the parent company of the Central Maine Power Co. (CMP), which last fall, along with its partners, had to stop construction of the NECEC transmission line in Maine after voters approved the referendum blocking the project.

Yesterday, though, the state supreme court said that a key portion of the ballot question would violate the developers’ “constitutionally protected vested rights” by retroactively imposing new requirements on a specific permit previously issued to them by the Maine Public Utilities Commission, according to the 39-page ruling.

At the same time, the court also clarified that NECEC’s right to proceed with the project “would not be absolute” and sent the issue back to a lower court to investigate further.

“Maine’s Supreme Court has ruled in favor of the constitutional challenge presented by Hydro-Quebec’s Maine partner, NECEC Transmission LLC,” according to a statement from Hydro-Quebec, which as part of its renewable energy purchase agreement with the State of Massachusetts plans to transport electricity into New England. 

“The court is remanding the case back to the trial court to confirm the company’s vested rights in the project,” according to the Canadian-based company’s statement.

Hydro-Quebec and its U.S. partner NECEC LLC are currently reviewing the state supreme court’s decision to determine their next steps and any potential impacts to the transmission line’s construction calendar, its statement says.

“The NECEC’s environmental and economic benefits were previously established by multiple federal and state regulatory agencies, which issued construction permits following a rigorous and independent process,” said the company, which added that the NECEC project remains part of Hydro-Quebec’s long-term vision. “The company is committed to supporting the transition to a clean energy future, both within Québec and beyond its borders,” it said.

Project opponents say the NECEC will minimally reduce greenhouse gas emissions, significantly ruin the unique ecosystem located along the transmission line’s route through western Maine, and negatively impact outdoor recreation.

Avangrid, however, says it’s time to move away from the status quo fossil fuel companies that will likely continue their fight to maintain a stranglehold on the New England energy market.

“These companies have fought this clean energy project in every legal manner possible, filing challenge after challenge in a desperate effort to hold onto their share of the market,” said Avangrid, noting that the NECEC will bring numerous jobs and hundreds of millions of dollars of investment into the state at no cost to Maine.

Additionally, the project will deliver lower energy prices in Maine and across New England, while helping to protect against price fluctuations, said the company. 

“The project will also help us meet our bold emission reduction goals by removing more than 3 million metric tons of carbon from our atmosphere, the equivalent of removing 700,000 cars from the road,” Avangrid said. “We are pleased with this outcome as we move Maine to a cleaner energy future.”

Nevertheless, NECEC opponents plan to continue their fight against the high-voltage transmission line by filing arguments with the state’s Business and Consumer Court, which has received the state supreme court’s decision for review.