Hydro-Qubec mounts last-ditch effort to revive stalled power line project through Maine

Hydro-Qubecwill be mounting a last-ditch effort to try to save a controversial transmission line project in Maine's highest court Tuesday.

Maine residents quashed the projectafter 59 per cent voted to ban the construction of the233-kilometre hydro corridorin a referendum last November. The project,known as the New England Clean Energy Connect Transmission LLC (NECEC),has beenon hold since the historic vote, at the request of Maine's governor.

Now,theMaine Supreme Judicial Court will heararguments from various parties about theconstitutionality of the referendum itself, in additionto a challenge of a leaseon public land. Either one could putthe project in jeopardy.

Thiscould be the last chance for proponents to get approval for the project, which would see Quebec supplying Massachusetts with renewable energy for 20 years and isestimated to generate $10 billion US for Hydro-Qubec over that time period.

Lynn St-Laurent, spokesperson for Hydro-Qubec, said the Quebec Crown corporationand the parent company of its U.S. partner, Central Maine Power (CMP), will argue that thereferendum unjustly annuls permits granted by executive and judicial powers, which already led to hundreds of millions of dollars in expenditures.

"[The referendum]retroactivelyseeks to repeal those authorizations and stop those projects, so we will be making the case that that is unconstitutional," said St-Laurent."Every permit was obtained after a rigorousprocess."

She said CMP owner Avangrid spent some $450 million US last year toclear 86 per centof the corridor in Maine and install 120 structures, as CMP began construction "on good faith reliance" of those permits.

Orlando Delogu, aprofessoremeritus of law at the University of Maine School of Law, said cancelling a project initiated several years prior, especially once construction has begun, violates the constitutional prohibition against ex post facto laws.

He saidthe initiative cannot stand for several reasons, one being that its language would amend the state constitution for consideration of future similar projects, which effectively changes the constitution doing "what is expressly prohibited."

More than a thousand pages of briefs have been filed with the court by experts and various parties.

'Lousy deal' for Mainers, says opponent

Meanwhile,energy companies, conservationists and other critics are callingon the court to uphold the validity of the referendum, some arguing that CMP proceeded with its work knowing the risks of challenges.

"The permits were subject to appeals," said Tom Saviello,a well-known opponent of the project andformer Republican senator from Maine. "If you move forward, you move forward at your own risk."

He said the project is"a lousy deal" for Mainers as the state is projected to see a total of $258 million US in economic benefits, while Hydro-Qubec and CMP would see billions.

Opponents have also long viewed the project as providing too little benefit considering the damage to their state's northern forests "a precious place for Mainers," said Saviello.

The planned project would carry1,200 megawatts of electricity overa 336-kilometrehigh-voltage transmission linebetween Thetford Mines, Que., and Lewiston, Maine.Of the 233 kilometresplanned on the U.S. side,85 kilometres would cut througha forested area.Clearing work was already well underway at the time of the referendum.

According to MainePublic Utilities Commission, the project would reduce greenhouse gas emissions by up to 3.6 million metric tons per year the equivalent of taking 700,000 cars off the road.

However, the state's largest environmental advocacy group, the Natural Resources Council of Maine, has expressed a great deal of skepticism about the real environmental benefits of Hydro-Qubec energy, questioningwhether the project would actually reduce GHG emissions.

WATCH| Drone footage showing the forest clearing in Maine along the project line:

Drone of Maine hydro project

3 years ago

Duration 0:50

Cutting of the forest path is well underway, as seen from this drone footage shot in June at Johnson Mountain, Maine, and supplied by project opponents with the Courtesy of Yes on 1 campaign.

Another obstacle

The referendum resultis the latest legal hurdle to put the project at risk.In August, a statejudge ruledthat the project lacked authority to cross a 1.6-kilometre stretch of public land in West Forks, Somerset County.

The judge said a lease, issued by Maine's Bureau of Public Landsto CMP in 2014, was invalid due to a clause in thestate constitutionthat says public land cannot be substantially altered without a two-thirds vote in both houses of the legislature.

The Supreme Court will also consider this case Tuesday.

Although it gets less attention, this dispute alone could derail the entire project. Bypassing the land would require new approvals and, consequently, additional time and cost. Meanwhile, the NECEC must be commissioned no later than August 2024, according to the contract with Massachusetts.

For Hydro-Qubec, this challenge is simply a way for opponents to thwart its plans. "All the permits have been challenged by opponents for the past three years," said spokesperson St. Laurent.

"The strategy of the opponents, either gas companies or gas company-funded groups, has been to try to bog down the project in a tide of legal challenges."

In its 2021 annual report, Hydro-Qubecdisclosed it could lose $536 million if the project is dropped, not to mention the potential revenueloss of $10 billion over 20 years.

This sum doesn't include the $20 million spent in recent years on lobbying and advertising for the project or the $46 million loss in 2019 following the failure of itsfirst project to export power to the U.S.through New Hampshire, which had the same objectives.

"Should [thisproject]be unsuccessful, we will cross that bridge when we get to it," said St-Laurent, adding the utility company is confident in its case.

The court is expected to release its decision this summer.