Opinion ID: 4516935
Heading Depth: 3
Heading Rank: 3

Heading: Public Need Standard

Text: [¶20] Next, NextEra contends that the Commission misconstrued the plain and unambiguous language of 35-A M.R.S. § 3132 and failed to comply with the statutory scheme, including the statute’s mandate directing the Commission to identify a public need for the NECEC project. Because NextEra is the party challenging the Commission’s decision, it has “the burden of showing that the [Commission]’s action was arbitrary or based on an error of law.” Cent. Maine Power Co. v. Pub. Utils. Comm’n, 2014 ME 56, ¶ 19, 90 A.3d 451 (quotation marks omitted). [¶21] Section 3132(6) requires the Commission to make specific findings regarding the “public need” for a proposed transmission line, but the statute does not define “public need.”13
[¶22] We apply a two-part inquiry “[w]hen reviewing an agency’s interpretation of a statute that is both administered by the agency and within the agency’s expertise.” Competitive Energy Servs. LLC v. Pub. Utils. Comm’n, NextEra also asserts that the Commission failed to identify a public need for a certain number 13 of megawatts of energy, not contracted for, that the NECEC is capable of delivering. Because the statute requires a determination of public need only for the transmission line itself, and not for its particular capacity, we find this argument to be unpersuasive and do not address it further. 12 2003 ME 12, ¶ 15, 818 A.2d 1039. First, we determine de novo whether the statute is ambiguous. Id. Next, if the statute is unambiguous we apply its plain meaning, but if it is ambiguous we “review the Commission’s construction of the ambiguous statute for reasonableness.” Id. “Statutory language is considered ambiguous if it is reasonably susceptible to different interpretations.” Scamman v. Shaw’s Supermarkets, Inc., 2017 ME 41, ¶ 14, 157 A.3d 223 (quotation marks omitted). [¶23] Section 3132 provides, in part, that “a person may not construct any transmission line . . . unless the commission has issued a certificate of public convenience and necessity approving construction.” Pursuant to section 3132(6), “the commission shall make specific findings with regard to the public need for the proposed transmission line. . . . [I]f the commission finds that a public need exists, after considering whether the need can be economically and reliably met using nontransmission alternatives, it shall issue a certificate of public convenience and necessity for the transmission line.” (Emphasis added.) Although section 3132(6) does not define “public need,” it does at least provide factors for the Commission to consider to determine public need: In determining public need, the commission shall, at a minimum, take into account economics, reliability, public health and safety, scenic, historic and recreational values, state renewable energy generation goals, the proximity of the proposed transmission line 13 to inhabited dwellings and alternatives to construction of the transmission line, including energy conservation, distributed generation or load management. [¶24] Furthermore, the Commission rules do define “public need.” Chapter 330 of those rules establishes filing requirements pursuant to section 3132, and section 9(A) of Chapter 330 sets forth the standards for granting a CPCN, directing the Commission to make specific findings with regard to the need for the proposed transmission line in accordance with 3132(6). 65-407 C.M.R. ch. 330, § 9(A). Section 9(B) of Chapter 330 is titled “Public Need Defined.” It states: The Commission establishes public need by determining that ratepayers will benefit by the proposed transmission line. Benefits are determined based upon the electrical need for the line, taking into account [the section 3132(6) factors] . . . . Cost is an important consideration, but public need can be established for a proposed transmission line that is not the least cost alternative because aesthetic, environmental or other factors justify a reasonable cost increase. Id. § 9(B) (emphasis added). [¶25] The Commission interpreted the public need standard as “essentially a general standard of meeting the public interest,” requiring a careful weighing of the project’s benefits and costs to Maine ratepayers and residents. The Commission contends that, “[u]nder the circumstances of this proceeding,” its application of the public need standard was consistent with 14 section 3132(6) and Chapter 330. CMP maintains that the statute does not plainly compel a contrary result because the Commission’s “comparison of costs and benefits to Maine and Maine ratepayers is precisely what is required in the public need analysis, as reflected in section 3132(6), Chapter 330, and [this] Court’s previous definition of public necessity and convenience.” See Enhanced Commc’ns of N. New England v. Pub. Utils. Comm’n, 2017 ME 178, ¶ 11 n.4, 169 A.3d 408. [¶26] Given the breadth of the concept of “public need” combined with the absence of any legislative definition, we must conclude that the term is ambiguous, and we cannot say that the Commission erred as matter of law by concluding that the term “public need” is a general standard of meeting the public interest. “An agency’s interpretation of an ambiguous statute it administers is reviewed with great deference and will be upheld unless the statute plainly compels a contrary result.” Cent. Maine Power Co., 2014 ME 56, ¶ 18, 90 A.3d 451 (quotation marks omitted); see also Enhanced Commc’ns, 2017 ME 178, ¶ 7, 169 A.3d 408. The Commission’s interpretation of its own rules, regulations and procedures is similarly entitled to considerable deference. Enhanced Commc’ns, 2017 ME 178, ¶ 7, 169 A.3d 408; Cent. Maine Power Co., 2014 ME 56, ¶ 18, 90 A.3d 451. 15 [¶27] The Commission’s definition is consistent with its rules, the legislative intent reflected in the statute, and Maine jurisprudence. See Enhanced Commc’ns, 2017 ME 178, ¶ 11 n.4, 169 A.3d 408. In this context, the Commission’s interpretation of the term “public need” and the manner in which it is to be determined was not error.
[¶28] We now consider whether the record supports the Commission’s finding of a public need. Section 3132(6) requires the Commission to make specific findings with regard to the public need for a proposed transmission line. “In determining public need, the Commission shall, at a minimum, take into account economics, reliability, public health and safety, scenic, historic and recreational values, state renewable energy generation goals, the proximity of the proposed transmission line to inhabited dwellings and alternatives to the construction of the transmission line . . . .” 35-A M.R.S. § 3132(6). [¶29] In addition to its general objection to the Commission’s finding of a public need pursuant to section 3132(6), NextEra specifically contends that the Commission failed to properly address Maine’s renewable energy generation goals and the NECEC’s adverse impact on scenic and recreational values. 16 [¶30] In its comprehensive order, the Commission discussed the factors set out in section 3132(6), including the issues raised by NextEra concerning scenic and recreational values and Maine’s renewable energy generation goals. The Commission found that the value to Maine resulting from the NECEC’s energy price suppression effect would amount to $14 - $44 million annually,14 and capacity market price reduction for Maine residents in the amount of $19 million annually over the first ten years. It found that there would be enhancements to transmission reliability and supply reliability and diversity. The Commission also found that the project would result in a reduction of greenhouse gas emissions. Further, it found that the project would have a positive impact on Maine’s gross domestic product, averaging $94-$98 million during the project’s construction period. All of these findings are supported by significant record evidence. The Commission’s order includes a chart containing a summary of the benefits to Maine of the 14 NECEC and the stipulation provisions. See 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 Qué bec-Maine Border to Lewiston (NECEC) and Related Network Upgrades, No. 2017-232, Order Granting Certificate of Public Convenience and Necessity and Approving Stipulation at 7 (Me. P.U.C. May 3, 2019). The value to Maine of the wholesale market effects is estimated at between $200 million and $500 million, the annual macroeconomic effects to Maine are estimated to be upwards of $125 million, and it is estimated that regional carbon emissions will be reduced by 3.0-3.6 million metric tons annually. See id. 17
[¶31] There is no dispute that the Commission found that the transmission line would have an adverse impact on scenic and recreational values; tourism; and local economies. However, NextEra contends that the Commission abused its discretion by deferring to the Department of Environmental Protection (DEP) and the Land Use Planning Commission (LUPC) on the issue of mitigation of these adverse impacts. NextEra does not argue that the Commission failed to consider the impact on scenic and recreational values—only that it did not properly consider mitigation. This argument is unpersuasive. [¶32] In determining public need, the Commission must take scenic and recreational values into account. See 35-A M.R.S. § 3132(6). Section 3132(6) also provides that the Commission “shall . . . consider the findings of the Department of Environmental Protection.” NextEra asserts that “there is no language in the statutory scheme of [s]ection 3132 that authorizes the Commission to delegate the consideration of the mitigation measures to another state agency.” While the Commission recognized that it maintains coextensive jurisdiction with the DEP and the LUPC with regard to any impact 18 on scenic and recreational values, it did not defer to those agencies its own consideration pursuant to section 3132(6). [¶33] Following the mandates of section 3132(6), the Commission properly considered scenic and recreational values and concluded that they would be adversely impacted by the NECEC project. That the Commission did not undertake consideration of any mitigation of those adverse impacts is immaterial because the statute imposes no such obligation on the Commission. See id. We reject NextEra’s argument on this point.
[¶34] Section 3132(6) also requires the Commission to consider Maine’s renewable energy generation goals. The Commission found that the NECEC project would not adversely impact those goals. [¶35] NextEra posits that the Commission erred as a matter of law in relegating the consideration of the State’s renewable energy generation goals to a weighing of benefits and costs. NextEra asserts that the Commission misinterpreted the relevant statutes and made erroneous factual findings in light of that misinterpretation.15 15 NextEra also contends that the Commission failed to make findings regarding the NECEC’s high-voltage direct-current design, as opposed to an alternating-current design, and asserts that the Commission could have conditioned the CPCN on an alternative NECEC design that would use alternating current technology. This argument fails for myriad reasons, one of which is that the 19 [¶36] As set forth in the relevant statutory provisions,16 the Commission determined that the renewable energy generation goals to be considered include the promotion of adequate, reliable, and diverse sources of electricity supply, and the reduction in greenhouse gas emissions. The Commission also concluded that the Maine Solar Energy Act, 35-A M.R.S. §§ 3471-3474 (2018), and the Maine Wind Energy Act, 35-A M.R.S. §§ 3401-3404 (2018), bear on the consideration of renewable energy generation goals by implementing a state policy of encouraging appropriately-sited wind and solar energy development, and therefore must be considered as part of the analysis of renewable energy generation goals pursuant to section 3132(6). [¶37] The Commission considered the goals of renewable energy generation as part of its section 3132(6) analysis. In doing so, the Commission found that the NECEC project will result in incremental hydroelectric NECEC project as proposed with the direct-current design was selected as the winning bid and a separate proposal using an alternating-current design was not. Additionally, the Commission found that the NECEC project, as designed with direct current technology, would not hinder Maine’s renewable energy goals and may even facilitate renewable energy development. These findings are supported by substantial record evidence. 16 See 35-A M.R.S. § 3210(1) (2018); 38 M.R.S. § 631(1) (2018). The Commission explained that Maine’s renewable-energy portfolio standards are governed by 35-A M.R.S. § 3210(1), which states: In order to ensure an adequate and reliable supply of electricity for Maine residents and to encourage the use of renewable, efficient and indigenous resources, it is the policy of this State to encourage the generation of electricity from renewable and efficient sources and to diversify electricity production on which residents of this State rely in a manner consistent with this section. 20 generation; will reduce greenhouse gas emissions in the region; will not hinder Maine’s progress towards meeting its statutory renewable energy portfolio requirements and solar and wind energy goals; may benefit future renewable energy generation projects as a result of the upgrades that ISO New England (ISO-NE)17 has already identified as necessary to the interconnection of new renewable energy generation in western and northern Maine; will have no impact on any proposed renewable energy generation projects in Maine that have a better interconnection queue position;18 and has the potential to facilitate renewable generation in Maine by providing for additional transfer capacity at no cost to future generation developers. These factual findings are supported by substantial evidence in the record. See Friedman v. Pub. Utils. Comm’n, 2016 ME 19, ¶ 10, 132 A.3d 183. [¶38] Section 3132(6) requires only that the Commission take into account state renewable energy generation goals—it does not specify how the ISO-NE is the regional transmission organization authorized by the Federal Energy Regulatory 17 Commission to operate New England’s power grid, administer New England’s wholesale-electricity markets, and ensure that New England’s electricity needs are met through power-system planning. See Our Three Critical Roles, ISO New England, https://www.iso-ne.com/about/what-we-do/threeroles (last visited March 12, 2020). 18 “The ISO New England Interconnection Queue lists the current status of requests for the interconnection of new or uprated (increased capacity) generating facilities in New England.” Interconnection Request Queue, ISO New England, https://www.iso-ne.com/system-planning/ transmission-planning/interconnection-request-queue/ (last visited March 12, 2020). Queue position “determines order for the purposes of interconnection study and cost allocation.” Id. 21 Commission is to consider those goals. Here, the Commission made specific factual findings and considered Maine’s renewable energy generation goals in light of those findings as part of its overall public need analysis. The Commission’s conclusions regarding the NECEC project and Maine’s Renewable Energy Goals were reasonable and consistent with the law. See Pine Tree Tel. & Tel. Co. v. Pub. Utils. Comm’n, 634 A.2d 1302, 1304 (Me. 1993) (“The Commission's decision will not be disturbed if it results from a reasonable exercise of discretion and is supported by substantial evidence in the record.”).