Transformer Installation Underway

An immense new transformer is being installed at the Central Maine Power Company's (CMP) substation facility on Straw Road in South Gorham. The massive 267-ton device is part of a $30 million project that began in January 2009. When completed, the project will enhance the capacity and reliability of CMP's power grid in southern Maine.

Built in Mexico, the transformer journeyed by rail on a circuitous route through the central United States and Canada until reaching its destination at the Pike Industries quarry site in Westbrook. Its weight and size precluded a more direct rail routing. From Westbrook it traveled by road to Gorham in the wee hours of September 28 on board a specialized 12-axle self-propelled transporter.

After being installed on its concrete pad, the transformer will be filled with oil and connected to the power lines in the substation. It is estimated that it will weigh 448-tons when it is fully assembled and working. It will step down the 345,000-volt transmission line power to 115,000-volts to supply the local power grid throughout Cumberland and York counties.

Dave Johnston, the project manager for CMP's contractor Power Constructors, Inc., estimates that the transformer will be ready by Nov. 1, and the entire upgrading of the substation will be complete sometime next year. CMP officials have emphasized that the work at the substation is not part of their proposed, but as yet unapproved, major expansion of Maine's overall electrical power system.

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Excise Tax Question Generates Varying Opinions

At the Town Council meeting on Oct. 6, Rep. Jane Knapp spoke at the public comment period and praised Town Manager David Cole's efforts to educate and inform Gorham's residents about the impact of the upcoming Question Two on the Nov. 3 ballot. The question is a referendum to approve or reject LD 974, entitled "An Act to Decrease the Automobile Excise Tax and Promote Energy Efficiency." Its passage would immediately reduce the excise tax on new vehicles by approximately 55%.

On the ballot, the actual question will read "Do you want to cut the rate of municipal excise tax by an average of 55% on motor vehicles less than six-years old and exempt hybrid and other alternative-energy and highly fuel-efficient motor vehicles from sales tax and three-years of excise tax?" Cole asserted that 68.1 % of the vehicles in Gorham were six or more years old, and their owners would see no benefit if the question passes—in fact, most residents would pay increased property taxes to make up the revenue shortfall.

Cole had previously estimated that the Town's property tax rate would need to go up next fiscal year from the present $15.90 to $16.61 per $1,000 of assessed value of real estate. The revenue loss would be approximately $887,000 per annum, but enactment would mean an immediate loss of about $542,000 for the present fiscal year. This amount cannot be made up through taxation, and would have to be absorbed by the municipal portion of the Town's budget.

Councilor Phil Csoros asked Cole if the School Budget could be used to offset some of the revenue loss. Cole stated that he had consulted with the Town's attorney Bill Dale, who opined that the Council could not modify the School Budget, since the voters had approved it by referendum in June.

In a further comment, Csoros said he believed that in the long run, the shortfall in revenue due to lower excise taxes could be made up, although he did think that the immediate enactment of the measure would be problematic. Earlier, he declared, "The vehicle excise tax is excessive and should be reduced. However, I will not support this ballot initiative because it exempts hybrids from all sales tax and from excise tax for 3 years."

Councilor Noah Miner asked Knapp if there was a possibility that the legislature could pass emergency legislation to delay the enactment of the referendum if it passes, so the municipalities could absorb the losses in this fiscal year. She said that this is a question for the Secretary of State, not the legislature. In previous statements, Miner expressed his support for the passage of the referendum, stating, "I'm in favor of changing the current excise tax formula, per Question 2. The current excise tax formula unfairly puts a significant tax burden on those people with new vehicles even though new vehicles create the same wear and tear on the roadway as an older one. People who buy new vehicles should not be penalized at the town office when they go to register."

In his blog, Matt Mattingly, a candidate for Town Council, wrote that Question Two could have unpredictable impacts for the town. "At the polls this November, Mainers will be asked an important question that will have unintended consequences. We will choose whether or not to cut the excise tax by an average of 50%. I, like most people, don't enjoy paying taxes. I believe our current model of excise tax is unfair and very poorly constructed." He then went on to delineate some of the potential harmful effects of the passage of this referendum.

Councilor Mike Phinney told the Councilors that he believed that the passage of Question Two would certainly result in higher property taxes. He stated his belief that property tax is a "much less fair means of taxation than the excise tax."

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