STATE OF MAINE
PUBLIC UTILITIES COMMISSION

Docket No. 2017-00232
February 21, 2019

CENTRAL MAINE POWER COMPANY,
Request for Approval of CPCN for the New
England Clean Energy Connect Consisting
of the Construction of a 1,200 MW HVDC
Transmission Line from the Québec-Maine
Border to Lewiston (NECEC) and Related
Network Upgrades

STIPULATION

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STIPULATION

 Table of Contents
I.
II.

III.
IV.
V.

PURPOSE ........................................................................................................................... 1
PROCEDURAL BACKGROUND ........................................................................................ 3
A.
CMP’s Response To The Section 83D RFP ...................................................... 3
B.

CPCN Petition ....................................................................................................... 4

C.

Intervenors ........................................................................................................... 5

D.

Intervenor Testimony, Updates Regarding the Status of the NECEC RFP
Bid and London Economics International Report ........................................ 6

E.

CMP Rebuttal Testimony ................................................................................... 8

F.

Surrebuttal Testimony, Additional LEI Analysis and CMP Visual
Renderings ........................................................................................................... 9

G.

Hearings – Phase I ............................................................................................... 9

H.

Supplemental Testimony and Additional Visual Renderings .................. 10

I.

Discovery and Public Comment ..................................................................... 10

J.

Hearings – Phase 2 ............................................................................................ 11

RECORD ........................................................................................................................... 12
PARTIES AND SETTLEMENT PROCESS ...................................................................... 13
RECOMMENDED APPROVALS AND FINDINGS. ......................................................... 14
A.
Certificate of Public Convenience and Necessity ........................................ 14
B.

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CPCN Conditions ................................................................................................ 15
1.

NECEC Project Ownership .................................................................. 16

2.

Transmission Rates Customer Credit: ............................................. 20

3.

New Corridor Removed from Transmission Rates ....................... 20

4.

NECEC Low-Income Customer Benefits Fund . .............................. 21

5.

NECEC Rate Relief Fund ...................................................................... 22

6.

Broadband Benefit ................................................................................ 23

7.

Heat Pump Benefit .............................................................................. 24

8.

NECEC Electric Vehicle (“EV”) Funds ............................................... 25

9.

Franklin County Host Community Benefits ................................... 27

10.

Education Grant Funding ..................................................................... 28

11.

Mitigating NECEC’s Impacts on Transmission System and Existing
and Future Maine Energy Resources ................................................ 29

i

 C.
VI.

12.

Commitment to Long-term Planning for Regional
Decarbonization .................................................................................... 32

13.

Securitization ....................................................................................... 33

14.

HQUS Support Agreement ................................................................... 34

15.

Maine Workers Preference ................................................................ 36

16.

Funding Commitments Conditions Precedent. ............................... 36

Nontransmission Alternatives Findings ....................................................... 36

ADDITIONAL STIPULATION TERMS .......................................................................... 36

ATTACHMENTS
Attachment A: NECEC Transmission Facilities
Attachment B: NECEC Transfer Agreement

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ii

 Central Maine Power Company (“CMP” or the “Company”), the Maine Office of the
Public Advocate (the “OPA”), the Governor’s Energy Office, Industrial Energy Consumer
Group (the “IECG”), Conservation Law Foundation (“CLF”), Acadia Center, Western
Mountains & Rivers Corporation (“WMRC”), City of Lewiston, Maine State Chamber of
Commerce (“Chamber”), and International Brotherhood of Electrical Workers (“IBEW”)1
(collectively referred to as the “Stipulating Parties”) agree and stipulate as follows:
I.

PURPOSE
The purpose of this Stipulation is to achieve an agreed upon resolution of CMP’s

Petition for Certificate of Public Convenience and Necessity (“CPCN”) for the New England
Clean Energy Connect transmission project (“NECEC” or the “Project”). The Stipulating
Parties agree that a “public need” exists for the NECEC as specifically described in Section
IV.A, Paragraph 1 below and listed in Attachment A under Maine law, including 35-A
M.R.S. § 3132 and Chapter 330 of the Commission’s Rules and, therefore, the Commission
should grant a CPCN for the Project in accordance with the terms and conditions provided
in this Stipulation.
The Stipulating Parties further agree that the construction of the NECEC in
accordance with the terms and conditions set forth in this Stipulation is in the public
interest because the Project and the hydropower it will deliver from Québec to New
England will provide, at no cost to Maine electricity customers, (i) lower electricity supply
prices and, by reducing reliance on fossil fuel generation, material energy price protection

1

Additional parties including the Town of Wilton and the Town of Farmington are still considering whether to join
the Stipulation. If they do join, the Stipulating Parties will supplement the Stipulation with additional signature
pages from the joining parties.

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1

 in natural gas price spike events; (ii) increased reliability for Maine and the ISO-New
England (“ISO-NE”) region, by delivering baseload energy to replace retiring baseload
resources, as well as other reliability benefits associated with the NECEC’s providing an
additional intertie between ISO-NE and Québec and transmission system upgrades
associated with the NECEC; (iii) significant carbon dioxide emission reductions as a result
of the Project including the increased use of electric vehicle and heat pump programs in
Maine, among others, funded pursuant to this Stipulation, which advance Maine’s progress
toward its long-term greenhouse gas (“GHG”) emissions reductions goals; and (iv)
significant other benefits including a rate relief fund, a low-income customer benefits fund,
and a broadband benefits fund, among other benefits.
The Stipulating Parties recognize that there are additional benefits to Maine
associated with the NECEC memorialized in agreements in addition to this Stipulation. In
addition, the Stipulating Parties also recognize that the environmental impacts of the
Project will be determined by agencies other than the Commission including but not
limited to the Maine Department of Environmental Protection (“MDEP”), the Maine Land
Use Planning Commission (“LUPC”), and the United States Army Corps of Engineers
(“USACE”).
This Stipulation is the result of extensive settlement negotiations and discussions
among CMP, the other Stipulating Parties, and Commission Staff. The Stipulating Parties
recommend that the Commission approve the provisions as set forth below.
The provisions agreed to in this Stipulation have been reached as a result of fair,
open, and transparent settlement negotiations based on information presented in this
proceeding and gathered through discovery and discussions among CMP and the

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 intervening parties, including the Stipulating Parties, and Commission Staff. 2 The
Stipulating Parties represent a broad spectrum of interests and constitute many of the
active participants in the proceeding.
II.

PROCEDURAL BACKGROUND
The procedural history of this proceeding is presented below.
A.

CMP’s Response To The Section 83D RFP

1.

On March 31, 2017, the Massachusetts electric distribution companies (the

“Massachusetts EDCs”), in coordination with the Massachusetts Department of Energy
Resources (“MA DOER”), issued the Section 83D RFP, requesting proposals from clean
energy generation3 and associated transmission to enter into contracts of 15 to 20 years
duration with the Massachusetts EDCs to meet Massachusetts’ statutorily required annual
procurement of 9.45 TWh (the “Section 83D RFP” or the “RFP”). The RFP set a July 27,
2017, deadline for parties to submit bid proposals.
2.

On July 27, 2017, CMP and Hydro Renewable Energy, Inc. (“HRE”),4

submitted joint bids offering two different NECEC configurations.5 Under the terms of the

The Commission Staff indicated as part of the settlement process that it takes no position on the Stipulation
and will present its recommended decision on the issues presented in this proceeding and on the Stipulation
in an Examiners’ Report.
2

Under the terms of the RFP, “Clean Energy Generation” includes the following: (i) firm service hydroelectric
generation from hydroelectric generation alone; (ii) new Massachusetts Class I RPS eligible resources that are
firmed up with firm service hydroelectric generation; and (iii) new Massachusetts Class I RPS eligible
resources.
3

HRE was proposed as a new U.S. affiliate of Hydro-Québec created for purposes of the Section 83D RFP.
Ultimately, Hydro-Québec decided to have its existing U.S. affiliate, H.Q. Energy Services (U.S.), Inc. (“HQUS”)
serve as the counterparty for the NECEC PPAs and TSAs. Hereinafter HRE is referred to as HQUS.
4

The joint bids proposed either (1) 1,090 MW of Incremental Hydropower Generation provided by HQ
Production or (2) 300 MW of new Massachusetts Class I Renewable Portfolio Standard (“RPS”) eligible wind
generation resources to be constructed by the NECEC Wind Developer firmed up with Incremental
Hydropower Generation provided by Hydro-Québec Production, the business unit within Hydro-Québec
5

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3

 RFP and the Massachusetts Energy Diversity Act, winning bids recover supply costs from
the Massachusetts EDCs through long-term power purchase agreements (“PPAs”) and, as
applicable, transmission-related costs through FERC-approved transmission service
agreements (“TSAs”).6
B.

CPCN Petition

3.

On September 27, 2017, CMP filed the Petition and associated Exhibits

NECEC-1 through NECEC-15 requesting that the Commission issue a CPCN for the NECEC.
The Petition asserted, among other things:
a. The NECEC is a high voltage direct current (“HVDC”) transmission line
capable of delivering 1,200 MW of electricity from Québec, Canada to the
New England Control Area, and consisting in its entirety of (1) 207 miles
(145.3 miles in Maine) of +/- 320 kV overhead HVDC transmission line that
will run between the existing Appalaches Substation in Thetford Mines,
Québec and a new HVDC converter station approximately 1.6 miles from the
existing CMP Larrabee Road Substation in Lewiston, Maine; (2) new HVDC
converter stations at both ends of the line; and (3) certain upgrades to the
existing high voltage alternating current (“AC”) New England transmission
system necessary to permit the interconnection of the NECEC to the New
England Control Area at the existing Larrabee Road Substation consistent
with the requirements of Section I.3.9 of the ISO-NE Transmission, Markets
and Services Tariff (hereinafter referred to as Section I.3.9 Approval) and the
Capacity Capability Interconnection Standard (“CCIS”) of the ISO-NE Open
Access Transmission Tariff (“OATT”);
b. CMP would develop, construct, and operate the NECEC transmission facilities
located in Maine;

_______________________
(footnote cont’d)
responsible for the production and marketing of wholesale energy and capacity for export (hereinafter “HQ
Production”) and 790 MW of Incremental Hydropower Generation provided by HQ Production, and
transmission rights for the remaining 110 MW of transmission capacity to use on a merchant basis. See
Petition at 2.
6

M.G.L. ch. 169 § 83D (2016); Section 83D RFP at 2-3.

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 c. The NECEC constitutes the transmission component of the two joint bids for
clean energy generation and associated transmission submitted by CMP and
HQUS, in response to the RFP;7 and
d. The NECEC would allow HQUS to use 1,090 MW of NECEC’s transmission
capacity to annually deliver up to 9.4 TWh of clean energy generation
originating from hydropower generation facilities owned and operated by
Hydro-Québec Production (“HQ Production”). The Petition also stated that
HQUS had agreed to purchase transmission rights for the remaining 110 MW
of transmission capacity on the Project to use on a merchant basis.
C.

Intervenors

4.

On October 3, 2017, the Hearing Examiners issued a Notice of Proceeding

that provided all interested persons with the opportunity to file a petition to intervene in
this matter on or before October 13, 2017.
5.

The Commission received seven timely-filed petitions to intervene. The

Hearing Examiners granted all such petitions at the October 19, 2017 initial case
conference and by subsequent procedural order dated October 25, 2017. The intervenors
in this proceeding that filed timely petitions to intervene include: OPA, CLF, Ms. Dorothy
Kelly (“Dot Kelly”), IECG, Maine Renewable Energy Association, Natural Resources Council
of Maine (“NRCM”), and WMRC.
6.

The Commission also received numerous late-filed petitions to intervene.

The Hearing Examiners granted all such requests for intervention on either a mandatory or
discretionary basis by procedural orders dated November 27, 2017; March 28, 2018;
April 27, 2018; August 28, 2018; September 6, 2018; October 2, 2018; October 11, 2018;

The Petition described the two different joint-bids that were submitted as different configurations of the
NECEC Project. The first bid was a Hydro and Wind Solution, and the second bid was a 100% Hydro Solution.
As discussed below, the Massachusetts EDCs, in consultation with the MA DOER, selected the NECEC 100%
Hydro Solution as the lone winning bid in the RFP. Accordingly, this summary hereinafter only refers to the
100% Hydro Solution bid.
7

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5

 October 15, 2018; and October 29, 2018. The intervenors in this proceeding that submitted
late-filed petitions to intervene include: The Governor’s Energy Office, NextEra Energy
Resources (“NextEra”), RENEW Northeast, Inc. (“RENEW”); Calpine Corporation
(“Calpine”), Vistra Energy Corporation (formerly known as Dynegy Inc.) (“Vistra”), and
Bucksport Generation LLC (“Bucksport”) (Calpine, Vistra and Bucksport hereinafter
collectively referred to as the “Generator Intervenors”); Acadia Center; Friends of Maine
Mountains; ReEnergy Biomass Operations LLC (“ReEnergy”); IBEW; City of Lewiston; Town
of Caratunk; Town of Farmington; Greater Franklin Development Council; Maine State
Chamber of Commerce; Trout Unlimited; Senator Thomas Saviello; Mr. Darryl Wood; Town
of Alna; Town of Wilton; Town of New Sharon; Town of Jackman; Old Canada Road Scenic
Byway, Inc.; and Franklin County Commissioner Terry Brann. In all instances in which the
Hearing Examiners granted a late-filed petition to intervene on a discretionary basis,
intervention was conditioned on the party’s “taking the case as they find it with respect to
discovery.”8
D.

Intervenor Testimony, Updates Regarding the Status of the NECEC RFP
Bid and London Economics International Report

7.

On January 12, 2018, CMP supplemented its Petition by submitting an

Electric and Magnetic Fields (“EMF”) Study for the NECEC, prepared by Dr. William Bailey
of Exponent. Dr. Bailey’s report was submitted as Exhibit NECEC-16.
8.

On January 26, 2018, Dot Kelly submitted intervenor testimony.

9.

On January 31, 2018, the Hearing Examiners issued a procedural order

temporarily suspending the proceeding on the basis that the Massachusetts EDCs did not
8

See, e.g., Procedural Order – Granting Late-Filed Petitions to Intervene at 1-2 (Oct. 29, 2018).

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 initially select NECEC as the Section 83D RFP winning bid. In that same order, the Hearing
Examiners sought comments from the parties on whether to dismiss or suspend the
proceeding.
10.

On February 17, 2018, CMP submitted a letter informing the Commission

that the Massachusetts EDCs, in consultation with the MA DOER, had selected the NECEC
100% Hydro Solution as the alternative winning bid in the RFP, and that the Massachusetts
EDCs would move forward with the 100% Hydro Solution, provided that the NECEC had
negotiated acceptable contract terms with the Massachusetts EDCs and the Northern Pass
Hydro Project was not able to receive all necessary permitting from the New Hampshire
Site Evaluation Committee by March 27, 2018.
11.

On February 22, 2018, the Hearing Examiners issued a procedural order that

lifted the temporary suspension and resumed the proceeding.
12.

On March 28, 2018, CMP filed an additional letter informing the Commission

of the MA DOER announcement that the Massachusetts EDCs had terminated the
conditional selection of the Northern Pass Hydro Project as the Section 83D RFP winning
bid, leaving the NECEC 100% Hydro Solution as the lone winning bid in the RFP. On that
same day, the Hearing Examiners issued a procedural order setting a revised schedule for
the remainder of the case through hearings.
13.

On April 1, 2018, Dot Kelly submitted additional intervenor testimony.

14.

On April 30, 2018, as permitted by the March 28, 2018 Procedural Order, the

Generator Intervenors submitted direct intervenor testimony from Tanya L. Bodell,
William S. Fowler, and James M. Speyer. In addition NextEra submitted intervenor

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 testimony from Christopher Russo and Stephen Whitley, and RENEW submitted intervenor
testimony from Francis Pullaro.
15.

On May 21, 2018, Commission Staff filed a report prepared by the

Commission’s consultants, London Economics International LLC (“LEI”) entitled
“Independent Analysis of Electricity Market and Macroeconomic Benefits of the New
England Clean Energy Connect Project” (“LEI Report”). The LEI report was filed in lieu of a
bench analysis.9
16.

On June 13, 2018, the Massachusetts EDCs executed long-term TSAs and

PPAs with CMP and HQUS respectively for the NECEC 100% Hydro Solution proposal.
E.

CMP Rebuttal Testimony

17.

On July 13, 2018, CMP filed Rebuttal Testimony from (1) Thorn Dickinson,

Eric Stinneford, and Bernardo Escudero with associated Exhibits NECEC-16 through
NECEC-26; (2) Chris Malone, Scott Hodgdon, and Justin Tribbet with associated Exhibits
NECEC-27 through NECEC-30; and (3) Daniel Peaco, Douglas Smith, and Jeffrey Bower of
Daymark Energy Advisors with associated Exhibit NECEC-31.10

9

Procedural Order – Clarification at 1 (May 24, 2018).

The TSAs that CMP executed with the Massachusetts EDCs are filed in the record as Exhibits NECEC-17
(Eversource TSA), NECEC-18 (National Grid TSA), and NECEC-19 (Unitil TSA). The additional TSAs that CMP
executed with HQUS for the period after the TSAs with the EDCs expire and for the 110 MW that the EDCs did
not contract for, are filed in the record as Exhibits NECEC-20 through NECEC-23. The executed PPAs are filed
in the record as Exhibit NECEC-16 (National Grid PPA), and NEXRE-002-006 Attachment 1 (Eversource PPA)
and Attachment 2 (Unitil PPA). On July 24, 2018, CMP submitted public versions of Exhibits NECEC-17
through NECEC-20 upon learning that the Massachusetts EDCs had publicly filed the same documents in
ongoing proceedings before the Massachusetts Department of Public Utilities. On October 5, 2018, CMP filed
corrected public versions of Exhibit NECEC-18 (National Grid TSA) and Exhibit NECEC-19 (Unitil TSA), known
as Revised Supplemental Exhibit NECEC-18 and Revised Supplemental Exhibit NECEC-19, respectively.
10

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8

 F.

Surrebuttal Testimony, Additional LEI Analysis and CMP Visual
Renderings

18.

On August 18, 2018, Tanya L. Bodell and William S. Fowler each filed

Surrebuttal Testimony on behalf of the Generator Intervenors. Also on August 18, 2018,
the following witnesses filed Surrebuttal Testimony on behalf of NextEra: (1) Christopher
Russo; (2) Robert Stoddard; and (3) Stephen Whitley, Dan Mayers, and Francis Wang.
19.

On September 10, 2018, in response to Mr. Stoddard’s Surrebuttal Testimony

on behalf of NextEra regarding the Minimum Offer Price Rule (“MOPR”), Commission Staff
submitted a memorandum prepared by LEI entitled “MOPR Estimate for the New England
Clean Energy Connect Transmission Project” and attached workbook (“LEI MOPR Memo”).
Additional exhibits to the LEI MOPR Memo were filed by Commission Staff on September
19, 2018.
20.

On September 18, 2018, in response to a request by Commission Staff, CMP

filed visual rendering materials for the NECEC transmission line that the Company had
previously filed with the MDEP.
21.

On October 12, 2018, CMP filed the visual rendering slide deck and

supplemental visual renderings that the Company referred to in the September 21, 2018
technical conference.
G.

Hearings – Phase I

22.

The Commission held evidentiary hearings regarding the NECEC on

October 19, 2018 (LEI) and on October 22, 2018 (CMP witnesses Malone, Hodgdon, and
Tribbet and NextEra witnesses Whitley, Wang, and Mayer).
23.

On October 26, 2018, at the request of NextEra supported by other

intervening parties, the Hearing Examiners suspended the remaining evidentiary hearings

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9

 until January 2019 in order to allow Commission Staff and intervening parties additional
time to review and analyze the documents that CMP produced in response to ODR-014004.11
H.

Supplemental Testimony and Additional Visual Renderings

24.

On December 10, 2018, the Generator Intervenors filed Supplemental

Testimony from Tanya Bodell and William Fowler regarding the MOPR analysis and other
issues. NextEra also filed Supplemental Testimony from Christopher Russo and LEI filed a
Supplemental MOPR Memo.
25.

On that same day, at the request of Commission Staff, CMP filed additional

visual renderings and visual impact documents that it had filed with the MDEP, LUPC and
the USACE a few days prior.
I.

Discovery and Public Comment

26.

Written discovery was conducted and technical conferences were held after

every phase of testimony, with the exception of the LEI MOPR Memo submitted by
Commission Staff, which was only subject to a technical conference. Collectively, the
parties and LEI responded to 58 sets of data requests and 33 sets of oral data requests,
each containing multiple individual data requests. CMP, alone, responded to more than
600 data requests during the discovery process.
27.

On September 12, 2018, CMP began data production in response to

Commission Staff’s follow-up questions to ODR-014-004. In total, CMP filed over 97,000

ODR-014-004 included an initial data request and a series of follow-up questions from Commission Staff
that sought all documents relied upon by the primary decision makers and senior management personnel of
CMP or any of its affiliates when making the decision to submit the NECEC RFP proposal.
11

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 pages of documents in 18 data production rounds that occurred from September 12, 2018
through December 4, 2018.
28.

The Hearing Examiners held 17 days of technical conferences throughout

this proceeding on the following dates: November 28, 2017 (CMP testimony regarding the
Petition); December 11, 2017 (CMP testimony regarding the Petition); April 5, 2018 (CMP
testimony regarding the Petition); June 14, 19, 20, and 28, 2018 (Intervenor and LEI
testimony); August 1 and 2, 2018 (CMP testimony regarding Rebuttal); September 6, 7, and
14, 2018 (Intervenor testimony regarding Surrebuttal); September 19, 2018 (LEI
testimony regarding the MOPR Memo); September 21, 2018 (CMP testimony regarding the
Visual Renderings); November 28 and 30, 2018 (CMP testimony regarding the ODR-014004 Documents); and December 19, 2018 (Intervenor and LEI Supplemental Testimony).
29.

The Commission convened three public witness hearings, each of which was

noticed in advance by procedural order. The Commission held the first two public witness
hearings on September 14, 2018 in Farmington and The Forks Plantation. The Commission
held the third public witness hearing on October 17, 2018 at the Commission’s offices in
Hallowell. In total, the Commission heard approximately 14 hours of public comment and
approximately 89 people provided oral and/or written testimony during the public witness
hearings.
30.

To date, approximately 1,000 public comments have been filed in the

Commission’s case management system in this docket.
J.

Hearings – Phase 2

31.

The Commission held the remaining evidentiary hearings on January 8, 2019

(Generator Intervenor witnesses Bodell and Speyer); January 9, 2019 (CMP witnesses

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 Dickinson, Stinneford and Escudero); January 10, 2019 (CMP witnesses Malone, Hodgdon
and Tribbet, and Daymark witnesses Peaco, Smith and Bower); and January 11, 2019
(NextEra witnesses Russo and Stoddard; and Generator Intervenor witnesses Bodell and
Fowler).
32.

On January 14, 2019, the Hearing Examiners issued an order identifying

specific issues for the parties to address in post-hearing briefs.
33.

On January 19, 2019, the Hearing Examiners extended the deadline for

opening post-hearing briefs to February 1, 2019, and similarly revised the remainder of the
proceeding by extending each subsequent deadline by 7 days.
34.

On February 1, 2019, CMP, OPA, IECG, Generator Intervenors, NextEra, CLF,

NRCM, Acadia Center, Town of Caratunk, City of Lewiston, IBEW, Chamber, Dot Kelly,
RENEW, and WMRC filed opening briefs and on February 13, 2019, CMP, OPA, IECG,
Generator Intervenors, NextEra, Town of Caratunk, and Dot Kelly filed reply briefs.
III.

RECORD
The record in this proceeding provides ample information on which the Stipulating

Parties and the Commission may base their conclusions regarding the NECEC and this
Stipulation. These materials include:


CMP’s Petition for CPCN, CMP’s Rebuttal Testimony and all supporting
exhibits and materials;



Intervenor Direct, Surrebuttal, and Supplemental testimony submitted by
intervening parties and supporting exhibits and materials;



The May 21, 2018, September 10, 2018 and December 10, 2018 LEI reports;



Responses to written and oral data requests and attachments to such
responses that have been admitted into the record pursuant to the
Procedural Orders dated October 24, 2018, February 4, 2019, and February
5, 2019;

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 IV.



Transcripts of all technical conferences, public witness hearings and
evidentiary hearings; and



Post-hearing briefs and reply briefs.

PARTIES AND SETTLEMENT PROCESS
To accept a stipulation, the Commission must find that:
a. The Parties joining the stipulation represent a sufficiently broad spectrum of
interests that the Commission can be sure that there is no appearance or
reality of disenfranchisement;
b. The process that led to the stipulation was fair to all parties;
c. The stipulated result is reasonable and is not contrary to legislative mandate;
and
d. The overall stipulated result is in the public interest.12
The undersigned Stipulating Parties believe that each of these factors is satisfied

through this Stipulation. The parties joining this Stipulation represent a broad spectrum of
interests and many of the active participants in this proceeding.
The process that achieved this Stipulation was fair to all intervening parties, and all
intervening parties had the opportunity to participate. CMP engaged in extensive
settlement communications with numerous intervening parties and other interested
stakeholders throughout the pendency of this proceeding. In addition, formal settlement
conferences, noticed in advance by procedural order, were held on September 7, 2018,
September 14, 2018, February 5, 2019, and February 12, 2019. Commission Staff
participated in these settlement conferences, and no party objected to such participation.

12

Chapter 110, § 8(D)(7).

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13

 As a result of these settlement discussions, the Stipulating Parties have resolved all
issues between them in this proceeding, Commission Docket No. 2017-00232.
V.

RECOMMENDED APPROVALS AND FINDINGS.
A.

Certificate of Public Convenience and Necessity

1.

Based upon the record in this case, the Stipulating Parties agree and

recommend that the Commission issue an order which: (a) approves, accepts and adopts
this Stipulation; (b) finds that a public need exists for the NECEC on the basis that the
Project, including the hydropower deliveries from Québec to New England it will enable,
provides (i) significant economic benefits for Maine and the ISO-NE region in the form of
lower electricity supply prices, reduced reliance on fossil fuel generation, material energy
price protection in natural gas price spike events, new jobs, increased gross domestic
product, and property tax revenues to host communities in Maine; (ii) reliability benefits to
Maine and the ISO-NE region, by delivering baseload hydropower to replace retiring
baseload resources, as well as other reliability benefits associated with the NECEC’s
providing an additional intertie between ISO-NE and Québec and transmission system
upgrades associated with the NECEC, all at no cost to Maine electricity customers; and
(iii) significant carbon dioxide emission reductions as a result of the Project including the
increased use of electric vehicle and heat pump programs in Maine, among others, funded
pursuant to this Stipulation, which advance Maine’s progress toward meeting its long-term
GHG emissions reductions goals as set forth in Maine law;13 and (c) grants a CPCN for the

See Act to Provide Leadership in Addressing the Threat of Climate Change, P.L. 2003, Ch. 237, codified in the
Maine Revised Statutes Title 38, Chapter 3-A.
13

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14

 NECEC permitting the construction of the Project in accordance with the terms of this
Stipulation.
2.

Specifically, the CPCN shall permit the construction of the transmission lines

and substation components listed in Attachment A of this Stipulation, as either a core
project element of the NECEC or a necessary transmission network upgrade associated
with the NECEC, and shall further permit construction of any related additional
transmission facilities that ISO-NE determines are necessary to meet the requirements of
(i) Section I.3.9 of the ISO-NE’s Transmission, Markets and Services Tariff; or (ii) the ISONE’s CCIS, all at no cost to Maine electricity customers, without further Commission review
in this docket or otherwise.
3.

Beginning on July 1, 2019, and every three months thereafter until the

NECEC is placed into commercial operation, NECEC LLC, as defined below, will file progress
reports with the Commission summarizing any significant developments in the permitting,
development and construction of the NECEC. These progress reports will (i) summarize
the status of the system impact studies or other studies conducted by ISO-NE regarding the
NECEC; (ii) identify all transmission network upgrades determined by ISO-NE as needed to
permit the interconnection of the NECEC under the CCIS and Section I.3.9 of the ISO-NE
Tariff; (iii) identify any federal, state or local permits or approvals received authorizing
construction of the NECEC; and (iv) summarize the Project’s progress towards completion.
B.
`

CPCN Conditions

The Stipulating Parties further agree and recommend that the Commission Order

granting the CPCN for the NECEC be conditioned on the following terms.

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 1.

NECEC Project Ownership: CMP will transfer and convey the NECEC to

NECEC Transmission LLC (“NECEC LLC”), a Delaware limited liability company that is a
wholly owned subsidiary within the Avangrid Networks family of companies and is not a
subsidiary of CMP.
a. Transfer Agreement: CMP and NECEC LLC will complete the transfer and
conveyance of the NECEC in accordance with an agreement substantially in
the form of the NECEC Transfer Agreement provided as Attachment B to this
Stipulation. Under the terms of the NECEC Transfer Agreement, CMP will
transfer and assign to NECEC LLC and NECEC LLC will assume:
i. Certain real estate interests sufficient to construct and operate the High
Voltage Direct Current (“HVDC”) transmission line between the CanadaUnited States border in Beattie Township, Maine and Lewiston, Maine
together with land for the construction and operation of a converter
station in Lewiston, Maine, together with real estate interests needed to
construct and operate a 345 kV alternating current (“AC”) transmission
line from the converter station to CMP’s substation at Larrabee Road,
Lewiston, Maine, and together with certain land offered as compensatory
mitigation for environmental permits related to the NECEC and the right
to purchase additional land to access the converter station (the “Real
Estate Interests”);
ii. All land use permits, any outstanding land use permit applications, and
other regulatory permits (the “Permits”) related to the NECEC;
iii. The Transmission Service Agreements among CMP, the Massachusetts
Electric Distribution Companies (“Massachusetts EDCs”) and H.Q. Energy
Services (U.S.) Inc. (“HQUS”) (the “TSAs”);
iv. All agreements executed by CMP with third party vendors and service
providers in connection with the development and construction of the
NECEC (“Third Party Vendor Agreements”) and certain agreements
between CMP and HQUS, Hydro-Québec and WMRC (collectively the
“Miscellaneous Agreements”); and
v. Such other tangible and intangible assets related to the NECEC that CMP
may possess including, without limitation, designs, plans and other work

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16

 product of CMP or vendors related to the NECEC, and intellectual
property related to the NECEC (collectively, the “Related Assets”).
b. NECEC Transfer Consideration: As consideration for the conveyance and
transfer of the NECEC, including without limitation, the Real Estate Interests,
the Permits, the TSAs, the Third Party Vendor Agreements, the Related
Assets, and any goodwill of CMP related to the NECEC, NECEC LLC will pay
CMP the sum total of $60,000,000, payable in forty (40) equal installments
of $1,500,000 each year commencing on the date the NECEC first achieves
commercial operation (the “Commercial Operation Date” or “COD”) and
continuing on each anniversary thereof. All payments by NECEC LLC to CMP
under the NECEC Transfer Agreement will be disbursed by CMP as part of the
NECEC Rate Relief Fund as set forth in Section V.B, Paragraph 5 below.
c. CMP/NECEC LLC Service Agreement: Effective upon the transfer of the
NECEC, CMP and NECEC LLC will enter into a service agreement substantially
in the form of the Service Agreement provided as Exhibit H to the NECEC
Transfer Agreement provided as Attachment B to Stipulation.
d. Other NECEC Transfer Commitments:
i. CMP and NECEC LLC agree to complete the transfer of the NECEC before
construction of the NECEC commences.
ii. NECEC LLC will not participate in any money pooling arrangement,
credit facility or other financing agreement with CMP without the prior
approval of the Commission.
iii. CMP and NECEC LLC will make such accounting entries as are necessary
in order to remove NECEC related development expenses from CMP’s
books and accounts.
iv. NECEC LLC will put in place and maintain a guaranty by AVANGRID, Inc.,
or its successor, with respect to NECEC LLC’s payment obligations to
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17

 CMP under the NECEC Transfer Agreement and NECEC LLC’s payment
obligations for the Heat Pump Fund (Section V.B, Paragraph 7), the
Dirigo EV Fund (Section V.B., Paragraph 8(a)), the Franklin County Host
Community Benefits Fund (Section V.B., Paragraph 9) and the Education
Grant Funding (Section V.B., Paragraph 10) for as long as such payment
obligations exist; provided, however, that such guaranty may be
terminated in the event that NECEC LLC obtains and maintains a credit
rating from a nationally recognized rating organization that is
satisfactory to the Commission in its discretion. NECEC LLC also agrees
to grant a first priority security interest to CMP in NECEC LLC’s payment
rights under the HQUS Support Agreement or related Hydro-Québec
guaranty or other credit support discussed in Section V, Paragraph 14
below for the purpose of funding the NECEC Low-Income Customer
Benefits Fund and the NECEC Rate Relief Fund. NECEC LLC further
covenants not to amend, fail to vigorously enforce, or waive any
provision of the HQUS Support Agreement or any guaranty provided by
Hydro-Québec or other credit support relating to HQUS’s obligations
under the HQUS Support Agreement in a manner that could impair any
payment obligation of either entity to NECEC LLC.
v. NECEC LLC and CMP will cooperate in good faith to facilitate access to
the use of the NECEC transmission corridor for ATV, snowmobile and
other recreational uses, consistent with applicable laws, regulations,
ordinances, permits and licenses and CMP’s generally applicable
standards and practices.
vi. NECEC LLC will not use CMP’s brand name, reputation or customer
relations to its benefit and will not engage in joint marketing or joint
advertising with CMP at any time.
vii. Maine transmission and distribution customers shall not be legally or
financially responsible for any portion of NECEC LLC’s revenue
requirement for the NECEC Transmission Project accruing during at
least the first 40 years of the useful life of the NECEC.
viii. CMP and NECEC LLC will not take or support any action to modify the
cost recovery mechanism applicable to the NECEC that would result in
Maine transmission and distribution customers being legally or
financially responsible for any portion of NECEC LLC’s revenue
requirement for the NECEC accruing during the first 40 years of the
useful life of the project, without first obtaining Commission approval for
such change.
ix. Notwithstanding the foregoing, this Stipulation shall not prohibit Maine
electricity customers from directly, or through a third party such as the
Maine transmission and distribution utilities as approved by the
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18

 Commission or a Maine competitive energy provider as approved by the
Commission, purchasing energy provided through the 110 MW of the
NECEC transmission capacity not contracted for by the Massachusetts
EDCs pursuant to the Section 83D RFP even if that purchase has the
effect of directly or indirectly paying for a portion of the revenue
requirement for the NECEC.
e. NECEC Network Upgrades: As part of the NECEC, upgrades to certain of
CMP’s existing transmission facilities will be necessary in order to permit the
interconnection of the NECEC to the transmission system administered by
ISO-NE in accordance with Section I.3.9 and the Capacity Capability
Interconnection Standard (“CCIS”) of the ISO-NE Open Access Transmission
Tariff (the “ISO-NE Tariff”) (the “Network Upgrades”). NECEC LLC agrees to
complete all such Network Upgrades determined by ISO-NE through the
necessary studies (currently underway and scheduled for completion in Q-3
2019) to be necessary under Section I.3.9 and the CCIS of the ISO-NE Tariff to
ensure a total transfer capacity at the Surowiec-South Interface of no less
than 2,600 MW. NECEC LLC shall be financially responsible for all costs
associated with the construction of the Network Upgrades in accordance
with applicable ISO-NE Tariff provisions. Upon completion, the Network
Upgrades shall remain the property of CMP, and CMP will be responsible for
the operation and maintenance of such transmission facilities. These
facilities shall be subject to Section V.B., Paragraph 1(d)(v, vi and vii) above.
f. Affiliate Transactions: CMP and NECEC LLC agree to obtain Commission
approval of all affiliate transactions related to the transfer, construction,
operation or maintenance of the NECEC requiring approval under Maine law,
including, without limitation, any interconnection agreement and affiliate
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19

 service agreements between NECEC LLC and any affiliate within the Avangrid
family of companies. Any amounts charged to NECEC LLC for services
provided by affiliates, including the Avangrid Service Company, will not
count towards any annual cap on total affiliate charges applicable to CMP and
other Avangrid affiliates within Maine. NECEC LLC, CMP and other affiliates
may share employees, directors, officers and information as necessary for the
construction, operation and maintenance of the NECEC.
g. Compliance Filing: Prior to the commencement of construction of the
NECEC, CMP and NECEC LLC will make a compliance filing which confirms
completion of the transfer of the NECEC from CMP to NECEC LLC in
accordance with the terms of this Stipulation and provides the AVANGRID
Inc. guaranty and first priority security interest called for in Section V.B.
Paragraph 1(d)(iv) above.
2.

Transmission Rates Customer Credit: Effective with the 2019 rate change

for transmission customers, CMP will provide a rate credit for RNS and LNS transmission
customers totaling $1.005 million. This credit represents the amounts paid in rates by
RNS and LNS transmission customers for those portions of the transmission corridor
necessary for the NECEC that have been included in FERC Account 105 for Plant Held for
Future Use, plus carrying costs calculated using the FERC refund formula. In addition, upon
the issuance of the CPCN for the NECEC, CMP will remove on a going forward basis all
NECEC-related property from FERC Account 105 – Plant Held for Future Use.
3.

New Corridor Removed from Transmission Rates: Upon the issuance of

the CPCN for the NECEC, CMP will classify the unused portion of the transmission corridor

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20

 it has assembled from the Canada-United States border in Beattie Township to the
Company’s existing Section 222 transmission corridor as Non-Operating Property in
Account 121 of FERC’s Uniform System of Accounts until such time as CMP identifies with
sufficient clarity a specific transmission project for development in such transmission
corridor in accordance with applicable FERC precedent, regulations and standards. CMP
agrees that it will not seek to recover the cost of this unused portion of transmission
corridor through transmission rates by reclassifying the property as Plant Held For Future
Use in Account 105 of FERC’s Uniform System of Accounts or by any other means, unless
the transmission project that will use this corridor is otherwise eligible for rate recovery in
whole or in part from Maine retail customers pursuant to the then applicable FERCapproved transmission tariff.
4.

NECEC Low-Income Customer Benefits Fund: NECEC LLC will establish a

$50,000,000 NECEC Low-Income Customer Benefits Fund to fund one or more programs
that benefit low-income energy customers in Maine in a manner designated by the OPA, in
consultation with the Efficiency Maine Trust (“EMT”) and the Governor’s designee(s).
NECEC LLC will fund the NECEC Low-Income Customer Benefits Fund by making annual
payments to the program(s) identified by the OPA, in consultation with the EMT and the
Governor’s designee(s), of $1,250,000 beginning on the NECEC COD and continuing on
each anniversary thereof for a period of forty (40) years. The NECEC Low-Income
Customer Benefits Fund may be used to fund programs that are intended to reduce the
amounts that low-income customers expend for electricity or other sources of energy and
may include weatherization and household energy efficiency programs. In designating
uses for these funds, the OPA, in consultation with the EMT and the Governor’s designee(s),

{W6918333.13}

21

 may apply a preference for low-income energy customers located in the NECEC Host
Communities. For purposes of this Stipulation, the “NECEC Host Communities” are defined
as the municipalities and communities in which the NECEC Core Project Elements and
Network Upgrades as identified in Attachment A are located and other municipalities and
communities in Franklin and Somerset Counties materially impacted by the construction
and operation of the Project.
5.

NECEC Rate Relief Fund: NECEC LLC and CMP will establish a

$140,000,000 NECEC Rate Relief Fund to be used to provide per kilowatt hour rate relief
for retail electricity customers within CMP’s service territory. To fund the NECEC Rate
Relief Fund, CMP will contribute the annual $1,500,000 transfer payments to be received
from NECEC LLC under Section V.B, Paragraph 1(b) above. In addition, NECEC LLC will
make annual contributions to the NECEC Rate Relief Fund of $2,000,000 beginning on the
NECEC COD and continuing on each anniversary thereof for a period of forty (40) years. In
addition, using commercially reasonable efforts CMP will each year seek to sell or
otherwise monetize for maximum value the Environmental Attributes provided by HQUS in
accordance with NECEC Support Agreement discussed below and contribute those funds to
the NECEC Rate Relief Fund. CMP will then credit the $3,500,000 contributed annually to
the NECEC Rate Relief Fund plus the proceeds from the sales of the Environmental
Attributes, net of expenses to complete such sales, to CMP’s stranded cost account or such
other account as the Commission may determine in the future will provide comparable per
kilowatt hour sharing by all retail electricity customer classes within CMP’s service
territory.

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22

 6.

Broadband Benefit:
a. CMP and NECEC LLC commit that the final design for the NECEC transmission
lines will include the necessary facilities and equipment to provide additional
fiber optic capacity on the NECEC HVDC transmission line and other AC
transmission lines included within the Network Upgrades for the benefit of
the State of Maine and in particular the NECEC Host Communities, with an
estimated value of $5,000,000.
b. CMP and NECEC LLC further commit to construct the necessary fiber optic
infrastructure to provide access to this fiber optic capacity at major road
crossings or other appropriate access points along the NECEC project route,
pursuant to the NECEC Support Agreement discussed in Section V.B,
Paragraph 14 below.
c. In consultation with ConnectME, the Governor’s designee(s), OPA and HQUS,
NECEC LLC will establish a $10,000,000 NECEC Broadband Fund. The NECEC
Broadband Fund will be funded by five (5) annual contributions of
$2,000,000 by HQUS starting on the NECEC COD. The NECEC Broadband
Fund will be available to provide grants to support the implementation and
maintenance of high speed broadband infrastructure in the host
communities through which the NECEC transmission facilities run. This
grant funding may be used for the following purposes:

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23

 7.

i.

Payment of any and all costs to study the feasibility and, if
commercially, technically and legally feasible, the implementation and
construction of a fiber optic connection between the State of Maine
and the fiber optic network serving Montreal, Province of Québec
through NECEC, pursuant to the NECEC Support Agreement discussed
in Section V.B, Paragraph 14 below, provided that no more than
$2,000,000 of the NECEC Broadband Fund may be used for these
purposes;

ii.

Payment of legal, consulting and financial planning fees related to the
establishment of public/private partnerships to expand the
availability of high speed broadband in the host communities or
ongoing project management required to expand and maintain the
availability of high speed broadband in such communities including,
but not limited to, providing broadband service to public buildings
where citizens may access the service for personal or business use;

iii.

Payment of annual pole license fees in unserved and underserved
areas; or

iv.

Payment of make-ready costs for utility poles in unserved and
underserved areas.

Heat Pump Benefit: NECEC LLC will establish a $15,000,000 NECEC Heat

Pump Fund for the installation in Maine of heat pumps, or other future efficient heating
technologies that are as efficient, or more efficient, than the most efficient heat pumps
agreed to by the OPA, the Governor’s designee(s), CLF, Acadia Center, and IECG in
consultation with Efficiency Maine Trust (“EMT”). Program specifications, eligibility
criteria and other details of the NECEC Heat Pump Fund will be developed on a
collaborative basis by NECEC LLC, HQUS, OPA, the Governor’s designee(s), CLF, Acadia
Center, and IECG in consultation with Efficiency Maine Trust (“EMT”) and may include a
preference for targeted initiatives to reach low- and moderate-income individuals and
communities in Maine. The NECEC Heat Pump Fund will be funded by HQUS and NECEC
LLC as follows:

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24

 a. Starting on the NECEC COD and annually on the first, second, third and fourth
anniversaries thereof, HQUS will make annual contributions of $2,000,000 to
the NECEC Heat Pump Fund, pursuant to the NECEC Support Agreement
discussed in Section V.B, Paragraph 14 below;
b. On the fifth and sixth anniversaries of the NECEC COD, NECEC LLC will make
annual contributions of $2,000,000 to the NECEC Heat Pump Fund; and
c. On the seventh anniversary of the NECEC COD, NECEC LLC will make a
contribution of $1,000,000 to the NECEC Heat Pump Fund.
8.

NECEC Electric Vehicle (“EV”) Funds: NECEC LLC, in consultation with CLF,

Acadia Center, OPA, the Governor’s designee(s), EMT and IECG, and with the support of
HQUS, will establish two funds totaling $15,000,000 for the purpose of expanding the
numbers of electric vehicles (“EVs”) in Maine and maximizing access and exposure in
Maine to EVs and EV infrastructure. The two funds are described below.
a. The Dirigo EV Fund: The Dirigo EV Fund will be used to provide: (1) rebates
to defray the cost of workplace, multi-unit dwelling and other public vehicle
charging installations in Maine; and (2) consumer rebates for the purchase of
qualifying EVs by Maine residents. The Dirigo EV Fund will be managed
pursuant to a written agreement between CLF, Acadia Center and the
Governor’s designee(s) prepared in consultation with CMP and NECEC LLC.
Funding for the Dirigo EV Fund will be provided through a contribution of
$5,000,000 from NECEC LLC. At the election of CLF, Acadia Center and the
Governor’s designee(s) NECEC LLC may make this contribution, either
through a lump sum payment based on documented program needs or

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25

 through alternative annual contributions, established by CLF, Acadia Center,
and the Governor’s designee(s) beginning in the year in which NECEC LLC
and Hydro-Québec receive all necessary permits and approvals to construct
the NECEC and the interconnecting transmission facilities in Québec. In the
event that CLF, Acadia Center and the Governor’s designee(s) elect that the
NECEC EV Fund be funded by a lump sum payment, CLF, Acadia Center and
the Governor’s designee(s) shall provide NECEC LLC with detailed written
descriptions of any such initiatives or programs to be funded with any such
lump sum payment, including details as to the magnitude and timing of the
funding requirements of such initiatives or programs. NECEC LLC, CLF,
Acadia Center and the Governor’s designee(s) shall jointly select a party to
design the rebate program and/or administer the distribution of the Dirigo
EV Fund. NECEC LLC further agrees to reimburse the Dirigo EV Fund up to
$50,000 for the charges for such program design and/or administration
related work. The programs or initiatives funded by the Dirigo EV Fund,
where applicable, shall be designed to:
i.

facilitate competitive development of charging stations by third
parties;

ii.

coordinate with other policy programs including Volkswagen
settlement Appendix D expenditures;

iii.

include targeted initiatives to reach low- and moderate-income
individuals and communities in Maine; and

iv.

exclude transmission and distribution utility ownership of end use
charging stations, except in cases of market failure.

b. The Hydro-Québec EV Fund: The $10,000,000 Hydro-Québec EV Fund will
be used to fund the deployment of a state-wide fast and ultra-fast public

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26

 charging infrastructure network for EVs in Maine. Hydro-Québec will
collaborate with CMP, OPA, IECG the Governor’s designee(s), and other
interested stakeholders in developing this network, which will enable Maine
EV drivers and visitors to enjoy safe electric travel across the state, with the
guaranteed availability of fast chargers at regular intervals of distance. This
charging network will be compatible with other public networks already
present in Maine and neighboring jurisdictions and will be operated and
supported by Hydro-Québec. The Stipulating Parties will provide for public
ownership of the equipment comprising, and general public access rights to
reasonably use and enjoy, the EV charging infrastructure network developed
pursuant to the Hydro-Quebec EV Fund, each for the useful of life of such
equipment or charging infrastructure. The Hydro-Québec EV Fund will be
funded through five payments of $2,000,000 by HQUS starting on the NECEC
COD and annually on the first, second, third and fourth anniversaries thereof,
pursuant to the NECEC Support Agreement discussed in Section V.B,
Paragraph 14 below.
9.

Franklin County Host Community Benefits: NECEC LLC will establish a

$5,000,000 NECEC Franklin County Host Communities Fund for the benefit of
communities in Franklin County. NECEC LLC will fund this fund through ten (10) annual
payments of $500,000 starting on the NECEC COD and continuing on each of the ensuing
anniversaries of the COD. The NECEC Franklin County Host Communities Fund will
provide grant funding to support the charitable mission of the Greater Franklin
Development Council (“GFDC”), a 501(c)(3) economic and community development

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27

 organization operating for the benefit of Franklin County residents) including the
marketing of the Franklin County region, workforce development, business retention, and
entrepreneurial support. NECEC LLC and GFDC will administer the NECEC Franklin County
Host Communities Fund on a collaborative basis, and funds will be disbursed through a
grant process that requires applicants to demonstrate the availability of matching funds.
Applications for projects to help low-income citizens of Franklin County will be given a
priority.
10.

Education Grant Funding: NECEC LLC will contribute $6,000,000 for

education-related grants and programs as follows:
a. Once the NECEC receives all State of Maine permits and approvals, NECEC
LLC will contribute $1,000,000 to Maine Prime Technologies LLC at the
University of Maine to fund research and development activities associated
with marine wind generation technology commercialization;
b. Starting on the NECEC COD, NECEC LLC will make ten annual contributions
of $500,000 to fund the following:

{W6918333.13}

i.

Internship programs and scholarships for needy Maine students to
attend the University of Maine Farmington totaling $1,000,000 over
ten years ($100,000 per year); and

ii.

Vocational programs, scholarships and innovative training programs
in the areas of math, science and technology for the School Districts
within Franklin and Somerset Counties or such programs and
scholarships for Maine Community Colleges that serve students from
Franklin and Somerset Counties, totaling $4,000,000 over ten years.
The Stipulating Parties agree to establish a governing board for the
($400,000 per year) administration and use of these funds. Such
board shall include two representatives from school districts in
Franklin County, two representatives from Somerset County, and
three representatives designated by the Maine Governor.

28

 11.

Mitigating NECEC’s Impacts on Transmission System and Existing and
Future Maine Energy Resources:
a. CMP and NECEC LLC agree to actively participate in all ISO-NE studies to
determine the thermal, voltage and stability ratings for the Surowiec-South
interface applicable upon the completion of the NECEC and, consistent with
good utility practice, advocate to ISO-NE to maximize the stability rating and
the total transfer capacity at the Surowiec-South interface after the
completion of the NECEC so that such rating is as close as possible to the
expected thermal and/or voltage limits (2812 MW and 2930 MW,
respectively) for that interface. This advocacy (whether oral or in writing)
will address the reasonableness of applicable study assumptions and
planning criteria and the appropriate balance between system reliability and
achievement of New England’s clean energy public policy objectives and will
occur through direct interaction with ISO-NE and at appropriate stakeholder
and ISO-NE committee meetings.
b. CMP, CLF, Acadia Center, the Governor’s designee(s), OPA, IECG and other
interested stakeholders (to be chosen by a process agreed to by CMP, CLF,
Acadia Center and the Governor’s designee(s)) will engage one or more
mutually agreed-upon transmission consultant(s) to evaluate and report on a
suite of potential transmission and non-wires solutions (including but not
limited to large scale solar and storage), and their respective estimated costs,
that would reduce existing and projected congestion at the Maine/New
Hampshire Interface and at the Surowiec-South interface. The consultant(s)
will be selected through a jointly developed request for proposals or other

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29

 agreed upon method that establishes minimum consultant qualifications,
services sought, scope of study and solutions to be analyzed. CMP will pay
for this study, the costs of which shall not exceed $2,000,000, and the study
shall be commenced once all applicable permits and approvals for the
construction of the NECEC transmission project in Maine are received and
Hydro-Québec receives all applicable permits and approvals for the
construction of the interconnecting transmission facilities in Québec. CMP
agrees that it will not seek to recover the costs of this study from electricity
customers.
c. For any cost effective and commercially viable transmission and non-wires
solution(s) identified in the Maine/New Hampshire and Surowiec-South
interface report prepared pursuant to Section V.B, Paragraph 11(b) above,
CMP agrees (directly or through an Avangrid affiliate) to fully assess and
pursue all available means of approval and cost allocation pursuant to the
ISO-NE Tariff, including but not limited to as a Reliability Transmission
Upgrade, a Market Efficiency Transmission Upgrade or a Public Policy
Transmission Upgrade, or as part of any future solicitation for clean energy
and transmission capacity. To the extent a viable mechanism is determined
to fund such solutions, CMP further agrees to, directly or through an
Avangrid affiliate, propose such solution(s) in any applicable competitive
solicitation, including without limitation any solicitation conducted under the
ISO-NE Tariff, and, if such proposal is selected in such solicitation, seek all
necessary permits and approvals to implement such solution(s) in

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30

 accordance with the then terms of the ISO-NE Tariff. In pursuing the
development of such cost effective and commercially viable transmission and
non-wires solution(s), CMP and its parent company, Avangrid Networks,
agree to bear commercial risk associated with the development of the
project.
d. Within one year of NECEC COD, CMP (directly or through an Avangrid
affiliate) shall create and make available an annual electric transmission and
distribution system report for public notice (subject to CEII provisions)
which analyzes system needs that may potentially be met by non-wires
alternatives (“NWAs”). This report will detail capacity and load by
substation and circuit and identify corresponding growth-related
investments being planned for. This report will also include a detailed
description of CMP’s planning and decision-making processes related to
NWAs during the year, including transparency into the application of its
NWA suitability criteria. CMP will work to develop and implement systems
and analyses that can provide heat maps that: (i) show where integration of
distributed generation is least likely to require substantial upgrades (i.e.,
hosting capacity maps); (ii) show the electric load on the electric distribution
system, including electric loads during peak electricity demand time periods;
and (iii) highlight the most congested or constrained areas of the electric
distribution system. Additionally, CMP will support policies and regulations
that seek to evaluate NWAs against traditional transmission and distribution
projects through (i) the use of competitive solicitations and (ii) the use of

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31

 compensation mechanisms that create incentives to place NWAs on an equal
footing from a ratemaking perspective. Such tools and heat maps will be
available within one-year after NECEC COD.
e. The above commitments in this Paragraph 11 are conditioned on (i) a CPCN
being granted for the NECEC, (ii) NECEC LLC receiving all other necessary
permits and approvals for the NECEC including, but not limited to, those
issued by the MDEP, the LUPC, the USACE and the MDPU, and (iii) HydroQuébec receiving all applicable permits and approvals for the construction of
the interconnecting transmission facilities in Québec.
12.

Commitment to Long-term Planning for Regional Decarbonization:
a. As part of a regional decarbonization collaborative comprised of CLF, Acadia
Center, utilities, the Governor’s designee(s), OPA, IECG and other
stakeholders (to be chosen by a process agreed to by CLF, Acadia Center, the
Governor’s designee(s) and CMP), CMP and NECEC LLC agree to work with
the collaborative to jointly select and hire a consultant to perform an analysis
of the means by which the Northeast Region may achieve economy-wide
decarbonization of zero emissions by 2050 as called for by the most recent
report of the Intergovernmental Panel on Climate Change Special Report on
Global Warming of 1.5°C. CMP agrees to contribute at least 50 percent of the
cost of this study and associated selection process. This contribution to the
study cost by or on behalf of CMP shall not exceed $500,000. As a member of
the collaborative, CMP (directly or through an Avangrid affiliate) will actively
engage in a regional stakeholder process to introduce and receive input on

{W6918333.13}

32

 the analysis and assess potential actions by which state policymakers could
advance decarbonization in each energy consumption sector. CMP agrees
that it will not seek to recover the costs of this study or stakeholder process
from electricity customers.
b. CMP agrees to work (directly or through an Avangrid affiliate) with a
stakeholder group made up of CLF, Acadia Center, the Governor’s designee(s),
OPA, IECG, and other stakeholders (to be chosen by a process agreed to by
CMP, CLF, Acadia Center and the Governor’s designee(s)) to research and
develop a set of utility policies and actions, and state regulatory reforms, that
can most effectively facilitate economy-wide decarbonization in the region,
consistent with the analysis conducted pursuant to Section V.B, Paragraph
12(a) above. CMP (directly or through an Avangrid affiliate), will work with
this stakeholder group to develop a consensus around these approaches, draft
proposed regulatory and legislative provisions by which the consensus
approaches can be authorized, and actively seek state approval and
implementation of them.
c. The above commitments in this Paragraph 12 are conditioned on (i) a CPCN
being granted for the NECEC and (ii) NECEC LLC receiving all other necessary
permits and approvals for the NECEC including, but not limited to, those
issued by the MDEP, the LUPC, the USACE and the MDPU.
13.

Securitization: CMP, OPA, the Governor’s Energy Office and IECG agree that

electricity customers in Maine may benefit if the annual payments to the NECEC Low-income
Customer Benefit Fund provided in Section V.B, Paragraph 4 and the annual payments to the

{W6918333.13}

33

 NECEC Rate Relief Fund provided in Section V.B, Paragraph 5 are leveraged through
securitization. To facilitate the securitization of such payment streams, if possible, NECEC
LLC, upon the NECEC COD, will establish a fund of $1,000,000 to be used to pay for any
investment bank, investment advisor or consultant and/or legal fees incurred by OPA, the
Governor’s designee(s), IECG and CMP related to such securitization. In the event any of
these funds are not needed to complete the securitization of either the NECEC Low-income
Customer Benefit Fund or the NECEC Rate Relief Fund, any remaining balance will be
disbursed to CMP to provide rate relief in accordance with Section V.B, Paragraph 5 above.
14.

HQUS Support Agreement:
a. In order to confirm HQUS’s commitments herein, CMP, NECEC LLC and HQUS
will enter a binding agreement enforceable under Maine law which reflects the
following terms:
i.

{W6918333.13}

HQUS’s commitment to provide CMP annually 400,000 MWh of
environmental attributes related to deliveries of hydroelectric power to
New England over the NECEC or otherwise (the “NECEC Environmental
Attributes”) for a twenty (20) year period starting in the first full year
after NECEC COD. The NECEC Environmental Attributes shall mean any
and all generation attributes under any and all other international,
federal, regional, state or other law, rule, regulation, bylaw, treaty or
other intergovernmental compact, decision, administrative decision,
program (including any voluntary compliance or membership
program), competitive market or business method (including all credits,
certificates, benefits, and emission measurements, reductions, offsets
and allowances related thereto) that are attributable, now or in the
future, to the favorable generation or environmental attributes of
Hydro-Québec hydropower generation resources including, but not
limited to: (a) any such credits, certificates, benefits, offsets and
allowances computed on the basis of the Hydro-Québec hydropower
generation resources using renewable technology or displacement of
fossil-fuel derived or other conventional energy generation; or (b) any
certificates issued pursuant to the NEPOOL Generation Information
System Operating Rules (“GIS”) in connection with energy generated by
the Hydro-Québec hydropower generation resources;

34

 ii.

Hydro-Québec’s commitment to include sufficient fiber optic capacity in
the Québec transmission facilities interconnecting to the NECEC to
provide a fiber optic connection between the State of Maine and the
fiber optic network serving Montreal, Province of Québec, subject to
commercial, technical and legal feasibility;

iii.

HQUS’s commitment to contribute $10,000,000 to the NECEC
Broadband Fund through five payments of $2,000,000 starting on the
NECEC COD and annually on the first, second, third and fourth
anniversaries thereof and to share its expertise on broadband
infrastructure;

iv.

HQUS’s commitment to contribute $10,000,000 to the NECEC Heat
Pump Fund through five payments of $2,000,000 starting on the NECEC
COD and annually on the first, second, third and fourth anniversaries
thereof;

v.

Hydro-Québec’s commitment to share its expertise with respect to EV
infrastructure in developing the programs and initiatives funded by
the Hydro-Québec EV Fund for the benefit of the State of Maine;

vi.

HQUS’s commitment to contribute $10,000,000 to the Hydro-Québec
EV Fund through five payments of $2,000,000 starting on the NECEC
COD and annually on the first, second, third and fourth anniversaries
thereof;

vii.

HQUS’s commitment to pay NECEC LLC annually $3,500,000 beginning
on the NECEC COD and continuing on each anniversary thereof for a
period of forty (40) years in addition to all amounts due under the
TSAs; and

viii.

A guaranty from Hydro-Québec of HQUS’s payment obligations under
the HQUS Support Agreement or such other appropriate credit support
for such obligations as the parties to the HQUS Support Agreement
agree.

b. Prior to the commencement of construction of the NECEC, NECEC LLC will
file the HQUS Support Agreement and the Hydro-Québec guaranty or other
credit support with the Commission as a compliance filing in this docket.

{W6918333.13}

35

 15.

Maine Workers Preference: All other factors being equal and consistent

with applicable law and applicable labor agreements, NECEC LLC, and its contractors
working on the construction of the NECEC will give preference to hiring Maine workers.
16.

Funding Commitments Conditions Precedent: The funding commitments

in Section V.B, Paragraphs 4, 5, 6, 7, 8(b), 9, and 10(b) above are conditioned on the NECEC
achieving commercial operation.
C.
1.

Nontransmission Alternatives Findings
The Stipulating Parties further agree and recommend that the Commission

find, based on the record in this proceeding, that no nontransmission alternative (“NTA”),
whether large-scale generation, distributed generation, demand response resource, or
conservation alternative, can feasibly substitute for the NECEC at a lower cost to Maine
electricity customers. The NECEC will serve the public need by transmitting up to 1,200
MW of hydropower energy from Québec to New England effectively replacing retiring
baseload generation, and providing the State of Maine with its first transmission
interconnection with the vast Hydro-Québec hydropower generation system. No NTA has
the technical capability, size or scale to satisfy this public need, and even if an NTA could
meet this public need, no such alternative could so do at a lower total cost to Maine
electricity customers, since no NECEC related costs will be borne by Maine electricity
customers.
VI.

ADDITIONAL STIPULATION TERMS
1.

The execution of this Stipulation by any Stipulating Party shall not constitute

precedent as to any matter of law or fact and, except as expressly provided herein, shall not
foreclose any of the Stipulating Parties from making any contention or exercising any right,

{W6918333.13}

36

 including rights of appeal, in any other Commission proceeding or investigation, or any
other trial or action.
2.

The Stipulating Parties intend that this Stipulation be considered by the

Commission for adoption as an integrated solution to the issues addressed herein which
arose in the above-captioned proceeding and as otherwise presented in this Stipulation.
The Stipulating Parties also intend that this Stipulation shall be null and void, and not bind
the Stipulating Parties in the above-captioned proceeding, in the event the Commission
does not adopt this Stipulation without material modification.
3.

If not accepted by the Commission in accordance with the provisions hereof,

this Stipulation shall not prejudice the positions taken by any Stipulating Party on these
issues before the Commission in this proceeding and shall not be admissible evidence
therein or in any other proceeding before the Commission.
4.

Upon approval by the Commission, this Stipulation shall have the legal effect

of a binding contractual agreement and shall not be amended without the written
agreement of CMP, NECEC LLC, OPA, IECG, CLF, Acadia Center, the Governor’s Energy
Office, WMRC, City of Lewiston, Chamber, and IBEW.
5.

All rights, commitments and obligations under this Stipulation shall be

binding upon and inure to the benefit of the lawful successors or assigns of the applicable
responsible entities identified herein. In the event that a responsible entity ceases to
operate or legally exist without a successor or assign, the Stipulating Parties, in
consultation with Commission Staff, will confer to identify an appropriate successor or
assign in order that the purposes of this Stipulation may be achieved and, as necessary and
appropriate, seek Commission approval of such successor or assign.

{W6918333.13}

37

 6.

The Stipulating Parties agree that the record in support of this Stipulation

includes: (a) this Stipulation, and (b) any and all confidential or public materials contained
in the Commission’s Administrative Record of Docket No. 2017-00232 as of this date, as set
forth in Section III of this Stipulation.
7.

The Stipulating Parties hereby waive any rights that they have under 5 M.R.S.

§ 9062(4) and Chapter 110, Section 8(F)(4) of the Commission Rules of Practice and
Procedure to the extent necessary to permit Commission Staff to discuss this Stipulation
and the resolution of the issues addressed in this Stipulation with the Commissioners,
either before or at the Commission’s scheduled deliberations, without providing to the
Stipulating Parties an Examiners’ Report or the opportunity to file Exceptions.
8.

All Attachments referred to in this Stipulation are incorporated herein by

reference and are intended to be considered as part of this Stipulation as if their terms
were fully set forth in the body of this Stipulation.
9.

In the event that the Stipulating Parties cannot agree on the implementation

of necessary details related the administration or use of any of the funds described in
Sections V.B, Paragraphs 4, 5, 6, 7, 8, 9, or 10 of this Stipulation, the Commission shall retain
jurisdiction to interpret the binding contractual effect of such provisions in accordance
with its authority under Maine law.

[Remainder of page intentionally left blank]

{W6918333.13}

38

 IN WITNESS WHEREOF, the Stipulating Parties have caused this Stipulation to be
executed by their respective attorneys or representatives, or have caused their lack of
objection to be noted by the signature of their respective attorneys or representatives.

CENTRAL MAINE POWER COMPANY

B;p~a.1~

~~~
MAINE OFFICE OF THE PUBLIC ADVOCATE
By: _ _ _ _ _ _ _ _ __

GOVERNOR'S ENERGY OFFICE
By: _ _ _ _ _ _ _ _ _~

INDUSTRIAL ENERGY CONSUMER GROUP
By: _ _ _ _ _ _ _ _ __

CONSERVATION LAW FOUNDATION
By: _ _ _ _ _ _ _ _ __

(W6918333.13}

39

 IN WITNESS WHEREOF, the Stipulating Parties have caused this Stipulation to be
executed by their respective attorneys or representatives, or have caused their lack of
objection to be noted by the signature of their respective attorneys or representatives.

CENTRAL MAINE POWER COMPANY
By: ____________________________________
By: ____________________________________

MAINE OFFICE OF THE PUBLIC ADVOCATE
By: ____________________________
_______________________ ________
Barry J. Hobbins, Public Advocate

GOVERNOR’S ENERGY OFFICE

By: _____________________________________

INDUSTRIAL ENERGY CONSUMER GROUP
By: _____________________________________

CONSERVATION LAW FOUNDATION
By: _____________________________________

{W6918333.13}

39

  

IN WITNESS WHEREOF, the Stipulating Parties have caused this Stipulation to be

executed by their respective attorneys or representatives, or have caused their lack of

objection to be noted by the signature of their respective attorneys or representatives.

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INDUSTRIAL ENERGY CONSUMER GROUP

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CONSERVATION LAW FOUNDATION

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39

 

IN WITNESS WHEREOF, the Stipulating Parties have caused this Stipulation to be

executed by their respective attorneys or representatives, or have caused their lack Of

objection to be noted by the signature of their respective attorneys or representatives.

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CENTRAL MAINE POWER COMPANY

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CONSERVATION LAW FOUNDATION

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IN WITNESS WHEREOF, the Stipulating Parties have caused this Stipulation to be
executed by their respective attorneys or representatives, or have caused their lack of
objection to be noted by the signature of their respective attorneys or representatives.

CENTRAL MAINE POWER COMPANY
By: ____________________________________
By: ____________________________________

MAINE OFFICE OF THE PUBLIC ADVOCATE
By: ____________________________________

GOVERNOR’S ENERGY OFFICE
By: _____________________________________

INDUSTRIAL ENERGY CONSUMER GROUP
By: _____________________________________

CONSERVATION LAW FOUNDATION

By:

{W6918333.13}

39

 ACADIA CENTER
By: _____________________________________

MAINE STATE CHAMBER OF COMMERCE
By: _____________________________________

INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS
By: _____________________________________

CITY OF LEWISTON
By: _____________________________________

WESTERN MOUNTAINS & RIVERS
CORPORATION
By: _____________________________________

{W6918333.13}

40

 ACADIA CENTER

By:

 

MAINE STATE CHAMBER OF COMMERCE

 



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By: 0

 

 

INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS

 

By:

CITY OF LEWISTON

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WESTERN MOUNTAINS RIVERS
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MAINE STATE CHAMBER OF COMMERCE

By:

 

INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS

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CITY OF LEWISTON

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WESTERN MOUNTAINS 8: RIVERS
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40

ACADIA CENTER

 

By:

MAINE STATE CHAMBER OF COMMERCE

By:

 

INTERNATIONAL BROTHERHOOD OF
ELECTRICAL WORKERS

By:

 

CITY OF LEWISTON

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WESTERN MOUNTAINS 8: RIVERS
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40