Other news: LUZO committee at inflection point; MD supporter of workforce housing candidate for PB; How Anne Napier got the harbormaster office approved in SWH; MDI's tricky emergency evacuation plan
Here's the full comment I made to Lincoln, which was edited in the above posting.
"When I started as a member of the Select Board, last Summer, I volunteered to be the liaison the harbor committee and recommended that the replacement of the harbormaster building be a top priority of the town for the year. The Board placed it at the top of the priority list and thanks to the good work of the committee, Nick, and especially Anne Napier and new harbormaster, Jarrod, it is about to happen.
"In the late July SB meeting we broadly agreed to move forward. At the end of the discussion, I asked the Chair to clarify whether we would have a chance to review the contract before it was signed, and she assured that would happen. I have been preparing a comparison of vinyl to cedar options in advance of that being on the agenda. Preview: there’s a mill right near the shop in Unity that’s building the modular unit. Longfellow’s Cedar Shingles and Shakes, Windsor, ME
"The contract was not on the agenda for this week. It only came up at the end of the meeting when discussing items for the next agenda, and I believe we will have the chance to discuss these final details then."
I hope this provides the full context of my thinking and great respect for what Anne has accomplished. Please know that the harbormaster office project is long overdue (decades), and that my request to review the siding – one of the last things to be done in construction - should not impact the ability to get this done this season.
Nothing is free including renewable power; wind and solar. These renewable sources are unreliable compared to base load natural gas plants. The move to renewable is why the costs of power are rising so fast in Maine and the rest of the country.
Public utilities, as monopolies are overseen by the state. While the "owners" of Versant may be the City of Calgary vs independent investors like most public utilities, like any other utility, Versant and CMP are overseen by the State. In Maine, this is the Maine Utility Commission. That oversight controls major investments, including investments in infrastructure improvements. Though a mechanism called "rate cases", the State also limits the allowable rate that the utility may return to their investors/owners. Increased rates do not translate into profitability beyond the allowable rate of return for the investor/owners. (I am not sure what Versant's allowable rate of return is. Utility allowable rates of return tend to be a modest rate in most cases, usually 7-10%).
So, it occurs to me, that the path to improvements in infrastructure vs. rates/costs incurred is really controlled at the State level. Taking over the utility operations by the State Government seems as though it would have little advantage. This would in effect be one State government department overseeing another State Government department. Besides the obvious lack of control this would create, it would also create disadvantage where Versant has operating experience, shared service agreements etc etc.
In my career I have worked with large, small and in-between sized public utilities as well as community-owned (municipal) utilities. The reality is that rates were very similar. Service and outage rates were about the same for utilities within the same general geographical areas. There is no doubt the infrastructure in this area is less than state-of-the-art. However, whoever "owns" this (Versant, or Pine Tree Power) is going to have to pay for enhancements and in the end, the rate-payers will pay for this.
Dear readers,
Here's the full comment I made to Lincoln, which was edited in the above posting.
"When I started as a member of the Select Board, last Summer, I volunteered to be the liaison the harbor committee and recommended that the replacement of the harbormaster building be a top priority of the town for the year. The Board placed it at the top of the priority list and thanks to the good work of the committee, Nick, and especially Anne Napier and new harbormaster, Jarrod, it is about to happen.
"In the late July SB meeting we broadly agreed to move forward. At the end of the discussion, I asked the Chair to clarify whether we would have a chance to review the contract before it was signed, and she assured that would happen. I have been preparing a comparison of vinyl to cedar options in advance of that being on the agenda. Preview: there’s a mill right near the shop in Unity that’s building the modular unit. Longfellow’s Cedar Shingles and Shakes, Windsor, ME
https://longfellowscedarshingles.com/"
"The contract was not on the agenda for this week. It only came up at the end of the meeting when discussing items for the next agenda, and I believe we will have the chance to discuss these final details then."
I hope this provides the full context of my thinking and great respect for what Anne has accomplished. Please know that the harbormaster office project is long overdue (decades), and that my request to review the siding – one of the last things to be done in construction - should not impact the ability to get this done this season.
Thanks Jim. It would have be great if you put that on the record at the public meeting before I prompted you for comment.
Nothing is free including renewable power; wind and solar. These renewable sources are unreliable compared to base load natural gas plants. The move to renewable is why the costs of power are rising so fast in Maine and the rest of the country.
The writer was in the coal business.
and worked in the alternative energy business for BP Wind Energy
Thanks Ted for the full transparency.
Interesting history of electricity deregulation in Maine. Angus King has done quite well since.
Re. article MDI's uneven power map:
Public utilities, as monopolies are overseen by the state. While the "owners" of Versant may be the City of Calgary vs independent investors like most public utilities, like any other utility, Versant and CMP are overseen by the State. In Maine, this is the Maine Utility Commission. That oversight controls major investments, including investments in infrastructure improvements. Though a mechanism called "rate cases", the State also limits the allowable rate that the utility may return to their investors/owners. Increased rates do not translate into profitability beyond the allowable rate of return for the investor/owners. (I am not sure what Versant's allowable rate of return is. Utility allowable rates of return tend to be a modest rate in most cases, usually 7-10%).
So, it occurs to me, that the path to improvements in infrastructure vs. rates/costs incurred is really controlled at the State level. Taking over the utility operations by the State Government seems as though it would have little advantage. This would in effect be one State government department overseeing another State Government department. Besides the obvious lack of control this would create, it would also create disadvantage where Versant has operating experience, shared service agreements etc etc.
In my career I have worked with large, small and in-between sized public utilities as well as community-owned (municipal) utilities. The reality is that rates were very similar. Service and outage rates were about the same for utilities within the same general geographical areas. There is no doubt the infrastructure in this area is less than state-of-the-art. However, whoever "owns" this (Versant, or Pine Tree Power) is going to have to pay for enhancements and in the end, the rate-payers will pay for this.