Dive Brief:

• The New England Power Generators Association is opposing a Massachusetts bill aimed at importing a third of the state's total electricity use for up to 25 years, a measure they believe would cost consumers more than $775 million annually.
• Mass. Gov. Charlie Baker (R) introduced legislation last year allowing utilities to source clean energy from Canadian imports, the bulk of which could come from Hydro-Quebec.
• But regional generators say the plan "dramatically underestimates the cost of outsourcing," and that average wholesale electricity price in the region was already just $0.05/kWh last year.

Dive Insight:

Backers of a plan to import Canadian clean energy into New England have failed to show how the plan would save ratepayers any money, according to NEPGA, while the region's power prices are already competitive.

"It strains credulity to believe that building lines ... plus paying a long-term premium for contracts would provide any cost savings when compared to the highly competitive electricity market prices," NEPGA said in a statement this month. 

The plan, which involves construction of transmission lines through the region, looks to replace coal- and oil-fired plants being shut down due to emissions concerns, along with helping reach Massachusetts' goal of reducing greenhouse gas levels by 25% by 2020.

But NEPGA argues that "understanding the assumptions that underlie the cost estimate is particularly important in light of the current prices in New England’s wholesale electricity market. In 2015, the average wholesale electricity price in the region was 5 cents/kWh. That is a price delivered to Massachusetts, unlike the power from provincially-owned hydro that must also add in hundreds of miles of transmission costs."

A study performed by The Analysis Group last year showed Massachusetts electric rates would rise $777 million annually under long-term contracts for Canadian hydroelectric power. That study was commissioned by NEPGA.

A group called Massachusetts Clean Electricity Partnership has been pushing for the deal, and last month launched a digital advertising campaign to promote the environmental and economic benefits.

“More than 80% of Bay State residents support new laws that will ensure access to sustainable supplies of clean, affordable and reliable clean energy resources for the long term because everyone benefits from a diverse supply of clean, competitively-priced electricity,” Robin Mcadam, vice president of Emera Inc., said in a statement released by the group.