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Maine on Wednesday launched a Cabinet-level Department of Energy Resources, which will replace the Governor’s Energy Office in overseeing policy.

The change also gives the agency authority to procure energy from clean and efficient sources with approval of the state’s Public Utilities Commission — a task the commission has largely overseen until now. Those contracts can affect electricity costs for residents and businesses.

Gov. Janet Mills proposed the department in January, signing it into law in July after approval by the Legislature.

For years, Maine was the only state in New England whose energy office was not a Cabinet-level department.

“The Department will help us plan smarter, seize new opportunities, and strengthen our partnerships across the region to meet Maine’s energy challenges and ensure a brighter future for our state,” she said in an a written announcement Wednesday.

Dan Burgess, who has led the energy office since 2019, will become acting commissioner. He must be confirmed by the Legislature to keep the post.

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“By elevating energy to cabinet level, the Department will have the people, tools and authority to plan to strengthen our grid, and promote cost-effective energy solutions for Maine,” Burgess said in a written statement. “Our focus will be on practical actions that benefit Maine families and businesses today, while preparing for a secure and reliable energy future.”

The new structure is intended to make the office less vulnerable to staff turnover between administrations, allowing it to better plan and execute long-term policy.

DECADES OF CHANGE

First established in 1973 as the Maine Office of Energy Resources, the body has been renamed and reorganized — and its responsibilities expanded and contracted — multiple times, Burgess said in an interview. Staff have not always stuck around from one governor’s administration to the next, he said.

“Priorities and policies are going to change, but having that structure of the department, I think, allows for more continuity,” he told the Press Herald. “Having that staff expertise that is developed and maintained is really important.”

The new department includes 18 permanent staff members, all of whom were carried over from the predecessor office, plus Burgess and Deputy Commissioner Celina Cunningham, who served as the former office’s deputy director, spokesperson Afton Vigue said.

The new title does not immediately affect Burgess’ pay, but that could change down the line, Vigue said. Commissioners’ salaries are only set after they are confirmed by lawmakers.

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CATCHING UP

The change brings Maine in line with the vast majority of states that have Cabinet-level energy departments, and it expands Mills’ Cabinet to 16 commissioners.

David Terry, president of the National Association of State Energy Officials, said the transition is likely to help Maine strengthen and stick to its energy plans.

“The states that have the Cabinet-level agency or the separate department, they tend to have a lot more continuity,” he said on a Wednesday phone call. “It doesn’t mean that different elected officials don’t change things, but the data they collect, the planning they do, the staffing they have tends to be more consistent … It really does seem to help.”

The state aims to procure 100% of its retail electricity from clean and renewable sources within the next 15 years.

That effort comes as the Trump administration works to roll back renewable energy, including by terminating offshore wind leases, sunsetting longstanding clean energy tax credits and clawing back millions in grants to expand renewable energy for low-income communities.

As Mainers’ electricity costs have risen in recent years, so too has their average demand for electricity, partly driven by statewide initiatives to electrify things like home heating systems and vehicles. Energy demand is predicted to double by 2050, according to the state’s latest energy plan.

Daniel Kool is the Portland Press Herald's utilities reporter, covering electricity, gas, broadband - anything you get a bill for. He also covers the impact of tariffs on Maine and picks up the odd business...