Maine Energy Bill Moves Out of Committee

Last Wednesday, the Maine Legislature’s Energy, Utilities and Technology Committee held a Work Session for LD 1570.  The much talked about Governor’s bill has gained attention of the media and renewable generators. 

The most controversial aspect of the bill has been the proposed freeze in the scheduled increase in the renewable portfolio standard for “new” renewable generation (e.g. solar, wind, hydro).  LePage Administration officials had claimed that this change would save Maine ratepayers $42 million over the next six years.  Renewable generators questioned those calculations and warned that such a move would seriously jeopardize future investment in new renewable generation in Maine.  For example, Verso Paper addressed the Committee by highlighting its current $43 million investment in a bio-mass generator.  Verso was clear that the proposed freeze in the Class 1 RPS would jeopardize its project.  Ultimately, the Committee worked out a compromise.  The final version of the amended bill does away with the proposed freeze, but directs the Maine PUC to study the portfolio standard and report back to the Legislature.

Also, while the original version of the amendment included a proposed section that would have set the alternative compliance payment rate at 150% of the average market price for the most recent year which data was available, the amendment now requires the MPUC to study the ACM and recommend to the Committee an appropriate ACM mechanism.

LD 1570 also called for the MPUC to adopt rules that place certain requirements on long term contracts signed by T&D utilities. This rulemaking requirement was retained.   The MPUC will be prohibited from directing a T&D utility to enter into a long term contract (except for off shore wind and tidal) until the final rules are adopted.

The remainder of the amendment directs the MPUC to complete a report regarding the RPS – source and cost of RECs used, impact of RECs on the regional REC market, the impact of the RPS on the viability of generators in the state, the cost and use of the ACM, etc.  The MPUC will provide the report during the Legislature’s second session. 

Although, the Committee voted unanimously to support the amended version, the debate surrounding these issues will continue during the Legislature’s second session.

Tom Welch Confirmed as Newest Maine PUC Commissioner

Today, the Maine Senate confirmed Tom Welch as commissioner of the Maine PUC.  Welch will take over the seat of Commissioner Jack Cashman, who will vacate the position he has held since 2008. 

Yesterday, the Utilities and Energy Committee unanimously recommended Welch’s confirmation.  Welch previously served as a PUC commissioner from 1993 to 2005.

See our announcement of Governor LePage’s nomination of Tom Welch here.

MPUC Clarifies Standards for Interconnection of Small Generators

In response to two complaints, the Maine Public Utilities Commission has issued an order clarifying Chapter 324, Small Generator Interconnection Procedures.  Chapter 324 was created to provide uniform standards for the connection of small generators to the electric grid in Maine as a result of increased interest in distributed generation.   The standards in Chapter 324 are an attempt to reduce transaction costs for small generators, allocate interconnection costs between the generator and the utility, set certain technical standards and create predictable outcomes.   

The Commission’s March 16, 2011 Order Regarding Implementation of Interconnection Rules (Ch. 324) clarifies that utilities must provide a “detailed engineering analysis” to an interconnecting customer, so that the customer has a clear understanding of what electrical upgrades may be needed to accommodate the generator before the generator is charged with the costs of upgrades.  In some circumstances, the customer must also be advised of the customer’s right to bring a dispute to the Commission for resolution pursuant to Chapter 324.

Governor Nominates Thomas Welch to Be MPUC Commissioner

March 15, 2010, Governor LePage nominated Tom Welch to serve as Commissioner of the Maine Public Utilities Commission to fill a vacancy created by the resignation of Commissioner Jack Cashman.  If confirmed, Mr. Welch would be appointed to a six-year term expiring in March 2017.

Mr. Welch served as Chair of the MPUC from 1993 to 2005, where he played a leading role in the restructuring of the Maine electric utility industry and the adoption of incentive regulation for Verizon.  Since leaving the MPUC, he worked briefly for PJM Interconnection, a Pennsylvania-based RTO, and has for the past five years been in private practice in Maine, specializing in energy and utility law.  During that time, he frequently represented Central Maine Power Company in proceedings before the Maine Commission.

Prior to moving to Maine in 1993, Mr. Welch served as Chief Deputy Attorney General for Antitrust in the Pennsylvania Attorney General’s Office, in-house counsel for Bell Atlantic, and Assistant Professor at Villanova University School of Law.

Mr. Welch is a 1972 graduate of Stanford University.  He received his law degree from Harvard Law School in 1975.

MPUC Adopts Standard Form PPA for Community-Based Renewable Energy Pilot Program

The Maine Public Utilities Commission has adopted a standard form contract for the purchase of energy, capacity resources and renewable energy credits under the MPUC’s Community-Based Renewable Energy Pilot Program.  The Pilot Program provides incentives for the development of locally-owned, community based renewable energy projects.  If qualified for the program, the renewable facility has the option of selecting either a renewable energy credit multiplier or a  long-term contract with a transmission and distribution utility for the sale of facility’s output.  A copy of the standard form contract may be found here.

Energy News Roundup: November 13-November 19

This week in regional energy news …

• UIL Holdings and Iberdrola have closed on their purchase of three New England gas utilities: the Southern Connecticut Gas Co., the Connecticut Natural Gas Corp., and the Berkshire Gas Co.  The deal is worth $917 million.
• In another deal announced this week, Constellation Energy Group was the successful bidder to purchase five power plants from Boston Generating, which is currently in bankruptcy proceedings.  The power plants generate nearly 3,000 megawatts and will increase Constellation’s generating assets by 33%.
• At a tidal power forum held at Maine Maritime Academy in Castine, Anne Miles, FERC’s director of hydropower licensing, announced that the U.S.’s tidal energy industry is catching up to Europe’s, but regulatory and technological challenges remain.
• Canada’s Defense Minister has announced that the country will devote $20 million in federal funds to a tidal energy project in the Bay of Fundy, off of Nova Scotia.
• Small-scale hydroelectric power project developers have concerns that Hydro-Quebec’s entrée into the U.S. market through New Hampshire will squeeze their projects out of the market in New England.
• Prince Edward Island has announced its intention to scale back proposed wind power development plans in the province, from 130 megawatts to 40.
• CMP requests dismissal of two MPUC smart meter complaints. 

Energy News Roundup: October 30-November 5

This week in regional energy news …

• The biomass industry in Massachusetts fears that an unfriendly regulatory environment in that state threatens the industry.
• A wind park developer announced plans to proceed on a project on Pisgah Mountain a day after voters in Clifton, Maine, refused to strengthen wind development regulations there.
• Maine’s House, Senate, and office of Governor have all flipped from Democratic to Republican.  What will this mean for climate and energy policy here?  Coverage in Mass High Tech and the New York Times.
• The Maine Public Utilities Commission yesterday reminded electric and gas consumers of their right to avoid a winter utility disconnection.