Gov. Janet Mills (D) has signed a bill into law creating the Maine Department of Energy Resources, a cabinet-level department responsible for coordinating and leading the state’s energy policy and programs.
In January, the governor announced her intention to seek legislation elevating the Governor’s Energy Office (GEO) by the end of this year.
At the time, Gov. Mills explained that Maine is one of only a few states to have an energy office located within the governor’s office, while more than 40 already have cabinet-level energy offices.
This is not the first time that efforts have been undertaken to incorporate the Maine’s energy office into the cabinet. In 2017, Republican House Minority Leader Ken Fredette (R-Newport) proposed establishing a cabinet-level energy agency.
[RELATED: Janet Mills Seeks to Elevate Energy Office to Cabinet-Level Department in 2025]
According to the governor’s office, the state’s new Department of Energy Resources will “advance strategies to reduce costs, strengthen reliability, and improve resilience across Maine’s energy systems.”
Mills noted in a Wednesday press release that the new department will take over everything currently being done by the GEO and expand upon it, including with a more robust procurement authority, or the power to arrange contracts to purchase goods and services.
With this authority, the governor’s office says that the department will “create a transparent, data-driven process with clear timelines, defined roles for the department and the PUC, and a consistent review standard.”
“This approach will help lower costs for ratepayers, ensure a reliable and diverse energy supply, attract investment, and advance Maine’s economic and energy goals,” the governor’s office explained.
During a public hearing on this proposal held in early April, supporters highlighted the expected organizational benefits of the new department, while opponents argued that it would unnecessarily concentrate more power in Augusta’s bureaucracy.
The Maine Policy Institute (MPI) offered testimony against this bill on the grounds that it would “enabl[e] sweeping regulatory influence over Maine’s energy markets under the guise of climate planning and centralized coordination.”
“At a time when many Mainers are struggling with some of the highest energy costs in
the nation, the last thing our state needs is more red tape, more government staff, and
more top-down mandates driving up electricity rates and distorting market signals,” said MPI.
Rep. Steven D. Foster (R-Dexter) — a member of the Energy, Utilities, and Technology Committee who voted against the department’s creation — shared some of his concerns over this move with the Maine Wire Thursday.
“The legislation [establishing the department] continues the GEO’s efforts to move forward with procuring in state solar and wind generation coupled with battery storage,” Rep. Foster said. “Further investment of state taxpayer and electric ratepayer monies in these non-reliable and less efficient forms of generation will continue the dependence on and cost of stand by generation.”
“Doing so will also continue to add to Maine’s electric rates, some of the highest in the nation,” he continued. “The GEO testified against every bill this past session aimed at reducing the cost to Maine ratepayers for Net Energy Billing.”
“Maine needs a Department of Energy that considers all forms of electric generation for Maine,” said Foster. “When other states and Canadian provinces are exploring installing modern nuclear facilities for their energy future, this new Department is focused on importing this energy from outside Maine to supplement wind and solar.”
“This new Department will be responsible for procurements previously undertaken by the [Maine Public Utilities Commission],” he added. “Within the current staff of 21, not a single member is degreed or licensed in the electrical or energy generation field, requiring the hiring of consultants when such expertise is necessary.”
“I could go on,” he concluded, “but suffice it to say, I expect even more of the same from this new Department that Maine ratepayers received from the current Governors Energy Office.”
Mills praised the new department’s creation in a statement Wednesday.
“Maine families and businesses deserve access to energy they can count on and afford — and establishing the Maine Department of Energy Resources is an important step toward an energy future that works for Maine people,” said Mills.
“This new department will allow the State to build a long-term approach for Maine’s energy needs, respond quickly to emerging challenges, and strengthen regional and national energy partnerships to benefit our people and economy,” Mills said.
“This is a major milestone for Maine’s energy future,” said Dan Burgess, director of the Governor’s Energy Office. “By creating a cabinet-level energy department, Maine is preparing not just for the challenges of today, but for what lies ahead.”
“Energy decisions affect the cost and reliability of power for every Maine household and business,” he continued. “The new department can help ensure those decisions are carefully planned, future-ready, and focused on Maine’s needs.”
Among those quoted as having praised the new department was Patrick Woodcock of the Maine State chamber of Commerce.
“Creating this new department is an important step that reflects the complexities of the energy system and its importance to Maine’s economy and future,” said Woodcock.
“Elevating energy to the Governor’s Cabinet will strengthen coordination, improve planning, and provide clear energy policy leadership for the state,” he continued. “The Maine State Chamber of Commerce appreciates the Governor’s leadership and looks forward to collaborating on energy solutions that support affordability, reliability, and economic growth.”
The Department of Energy Resources is expected to launch later this year and will be led by a commissioner who is appointed by the governor and confirmed by the Legislature.
Click Here to Read the Governor’s Full Press Release
Disclosure: The Maine Wire is a project of the Maine Policy Institute.
