Saturday, July 4, 2009

Lesson for the State and Federal government from Millinocket, Maine

The town of Millinocket, Maine has a basic understanding of the economy that seems to be lacking in the state and federal government. Millinocket has resumed work on the creation of a new public utility for the area in the hopes of attracting business. While unsure of whether they would be involved in generation or just the distribution of electricity, the town council understands that cheap electricity rates will attract business to the area.

As reported in the 04 July, 2009 issue of the Bangor Daily News, town manager Eugene Conlogue is looking to hire a consultant to study the issue. Town council members have already looked at the model of Madison Electric Works in Madison, Maine. This utility offers some of the lowest electricity rates in the state which has helped to draw businesses like Backyard Farms to the area which employs 130 full time workers.

If the town council of a small Maine town can understand the importance of low energy rates to economic development, why can’t the state and federal government do the same. When Rep. Michaud and Rep. Pingree are voting for the cap and trade energy bill which will somehow raise energy costs yet stimulate the economy, they are showing a level of ignorance on this issue. The Maine government continues to look at small renewable energy projects while ignoring the big picture of energy costs in Maine. Cheap energy is vital to the economy of this state and nation. The sooner that our leaders realize this issue, the better off we will be.

Wind vs. Nuclear wisdom from Professor Dick Hill

The 4 July, 2009 issue of the Bangor Daily News contained a very informative snippet from Professor Dick Hill. After almost a decade of arguing and permitting processes to build the Cape Wind project, not a single turbine has been put up. The project proposal calls for the erection of 130 wind turbines over 25 square miles of ocean. If constructed the wind farm will produce an estimated 1.4 billion kilowatt-hours of electricity. Hill points out that if this proposed wind farm is ever built and it meets its production goals, it will only produce one fourth of the energy output that was created by the old Maine Yankee nuclear power plant.

The Cape Wind project is a proposed wind farm that is supposed to be build off the coast of Cape Cod. It has gained notoriety from the opposition of the Kennedy family to this project. The Kennedy family has for the most part adopted a “not in my backyard” position on this wind turbine project while pushing similar projects on other Americans.

There is another issue with comparing the power production of a wind farm vs. a nuclear power plant. A nuclear power plant produces a steady flow of power that can be projected and relied upon. Wind farms produce varying amounts of power and rely on the presence of back up power generation sources to maintain the electrical supply. Many studies have shown that wind power generation does not reduce the need for traditional electricity generation as the need back up sources must be maintained on line. This may lead to a massive investment in wind energy with no reduction in fossil fuel dependence. An excellent article on this issue can be found at http://www.aweo.org/ProblemWithWind.html

Professor Dick Hill is a mechanical engineering professor at the University of Maine and is featured on the radio show Hot and Cold. I wish that the state of Maine and federal government would rely more on people like Hill who looks at the practical instead of what feels good with energy production. With congress passing the cap and trade energy bill, we need to take a serious look at what really works in the area of energy production. Will wind energy really provide any solution?

The Blatant Waste of Money By Rep. Michael Michaud and Rep. Chellie Pingree

Maine Representatives Michal Michaud and Chellie Pingree showed their love of government spending and total disregard for the taxpayer this week in their opposition to H.R. 2996. This bill was to eliminate the pork spending on a traditional arts project in Canton, N.Y.. Since we all know that Michaud and Pingree must have the best interests of the Maine taxpayers in mind, there must be some hidden tie between the Maine economy and the traditional arts community in Canton, N.Y..

This bill was to eliminate $150,000 in spending on this project. While this represents a mere drop in the bucket of federal spending, the symbolism of it is striking. I thought this was going to be a new enlightened government that put the people first and the pork last. Michaud and Pingree could not even step out of lock step with their party long enough to eliminate this pork spending that in no way can be construed as a federal spending issue.

How can this be construed in any way as serving the needs of the Maine or U.S. citizen? I used to think that congress spent like drunken sailors. I would like to apologize to all of the drunken sailors out there and tell them that I would rather place them in charge of my tax dollars.

More Stimulus Package Waste in Bangor, Maine

What can you get for $53,000,000? Well apparently, you can get a fresh coat of paint and some cosmetic work on a federal building that is smaller than a Walmart store. As part of the Obama stimulus package, the Bangor Federal Building has been approved for a $53 million renovation project. As reported in the 4 July, 2009 issue of the Bangor Daily News, this expenditure is raising a few eyebrows in the central Maine area.

With the national debt soaring to staggering new heights, one wonders if this is a wise investment at this time. If the there truly is the need to spend away our future to provide work projects now, there might be some more worthwhile projects out their. The Maine DOT biennial budget including paving projects is projected at $673 million dollars so this money could represent an 8% increase in the budget for the whole state. Job creation projects like the new Bangor Auditorium could be paid for with this type of federal outlay. This “investment” represents an expenditure of $360 by every single resident of Penobscot county.\
\
Chairman of the Penobscot County Commissioners, Thomas Davis, has stated that this project does not make any sense. Many members of the Bangor City Council have raised concerns about the high cost of the project. It seems like such a luxury for this economically troubled area. According to the offices of Senator Collins and Senator Snowe, these projects are being closely watched and the spending is on critical projects.

The critical project in question is specifically the renovation of the Margaret Chase Smith Federal Building in Bangor, Maine. The Margaret Chase Smith Federal Building contains offices for 15 federal agencies and was constructed in 1966. Apparently the building has not had major renovations during its life. The proposed renovations will include new heating and cooling systems, new windows, electrical systems, security systems and other updates. The total size of the building is 165,897 square feet and the original construction cost was $4.5 million.

I do not agree with the whole idea of mortgaging our future to provide some temporary jobs today. But, if this is the policy that the President and Congress seem determined to pursue could we just spend the money a little more wisely? How about projects that will create more jobs in the future? How many wind turbines could be built for this money? How many small business loans for projects could be made?

Why do public “servants” always work in the nicest facilities in town? I believe that these buildings should be extremely low on the priority list. The needs of the citizens should come before the needs of the public “servants”. Even with the policy of spending trillions of dollars of borrowed money on short term projects as a long term solution, we can do better.

Downeast Economy hit by Red Tide

On 2 July, 2009, the Maine Department of Marine Resources closed all of Cobscook Bay and many other coastal areas to the harvesting of mahogany clams due to the extremely high levels of red tide. With additional areas already closed, this is a major hit to this economically depressed area. As detailed in the 4 July 2009 Bangor Daily News story on this event, many companies like the Beal’s Lobster Co. have much of their workforce sitting idle while the harvesting ban is in effect.

There does not currently seem to be an end in sight for this large bloom of red tide algae which also threatens the Penobscot Bay harvesting area with closure. Red tide algae is a naturally occurring event off the coast of Maine. When the levels of red tide become extremely high, shellfish can accumulate toxic levels red tide. Humans that consume shellfish with high red tide content can get an illness known as paralytic shellfish poisoning. Red tide does not harm the consumers of lobster and crabs unless they consume the tomalley or liver.

In addition to the closures due to red tide, the high levels of rainfall in Maine this summer are causing additional shellfish areas to close. When rainfall levels reach 2 inches and above, the areas must be closed due to the high levels of runoff into the area. This has led to lost days for diggers in many areas of the state. With the state budget issues, it seems very unlikely that the people of this area can expect much in the way of additional aid for this season.