At a confidential meeting today, parties including the staff of the Maine Public Utilities Commission and Central Maine Power Co. will seek ways to settle CMP's landmark request for a $1.4 billion upgrade of its transmission system.

But two prominent parties in the case say the settlement attempt – initiated at CMP's urging – reflects political pressure by the utility's parent company and threatens to short-circuit a legal process that's meant to test whether the project is necessary in its proposed form.

They also say that Gov. John Baldacci's wind power trade mission to Europe last week, and statements the governor made during the trip, send a message that Maine's energy future depends heavily on the approval of the transmission line, which would directly benefit Iberdrola, the Spanish owner of CMP's parent company, Energy East.

"My concern is that the vast amount of money at stake has resulted in Iberdrola and Energy East putting a great deal of pressure on the governor and his energy staff," said Anthony Buxton, a lawyer representing paper mills and other businesses. "I'm concerned the PUC staff is trying to drive a settlement with CMP, without the opportunity of full hearings under oath."

Buxton, one of Maine's top energy lawyers, has decades of experience with regional utility matters. He represents the Industrial Energy Consumer Group in the CMP case.

Another party in the case, Richard Silkman, says that CMP is pushing for a settlement in hopes of getting the transmission upgrade approved before the influence of Baldacci, a vocal supporter, wanes as he enters his last year in office.

"He's their biggest cheerleader," said Silkman, a former state planning director. "This is the horse they need to ride to get them across the finish line."

Silkman has been involved with energy matters for 25 years and is a partner in Competitive Energy Services in Portland. He developed a wind power project last year in Freedom. He is now proposing an unconventional, solar-power alternative to CMP's project, called Grid Solar, so he is a key adversary in the case.

The charges are noteworthy because of the amount of money hinging on the PUC's decision. The $1.4 billion cost of the transmission system upgrade would be shared by ratepayers across New England, with Maine residents paying 8.3 percent.

Approval would be a windfall for CMP and Energy East.

Transmission projects receive a rate of return set by the Federal Energy Regulatory Commission. CMP has annual net income of about $55 million. If the project wins approval, CMP's net income could increase by $100 million, based on a 12.89 percent rate of return on investment set by FERC.

Buxton and Silkman's charges were rebutted this week by CMP, Baldacci's office and the PUC.

They point out that settlement conferences, as they are known, are common in public utility cases. The private meetings let the PUC staff, lawyers from the Public Advocate's Office and formal intervenors seek common ground and compromise with a utility. The approach was used in the sale of Verizon's landline network to FairPoint Communications. Ultimately, any deal needs approval from the three commissioners.

CMP says it's interested in a settlement because the review process is months behind schedule. Transmission upgrades will be needed by 2012 to meet industry design standards for reliable service, said John Carroll, a CMP spokesman. Charges of political influence are distraction tactics used by opponents, he said.

"Anybody can make that accusation," he said, "but a settlement is a normal course for many large issues."

A spokesman for Baldacci rejected any claims of political influence.

"There's an independent process and the governor isn't interfering with that process," said David Farmer.

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