Maine Public Utilities Commission Approves Transmission Reinforcement in Western Maine

The MPUC granted a Certificate of Public Convenience and Necessity for Central Maine Power Company’s proposed Somerset County Reinforcement Project, a 115 kV, 39-mile transmission line in western Maine.  Although the line was initially proposed as part of CMP’s Maine Power Reliability Program, this particular component of the project was not initially approved by the MPUC when the MPUC approved the MPRP in June 2010.  After further proceedings, the Commission approved a stipulation in which several parties agreed that there was a need for the line, but others contested the need for the proposed transmission solution on various grounds.  The Commission found that although a re-rate of an existing line is an option that could address the demonstrated reliability need, the new line would provide several additional benefits.  Among the additional benefits, the Commission found that the new line would advance Maine’s policy of promoting cost-effective development of renewable generation.  It will enable the development of wind generation in western Maine.

MPUC Reminds Maine CEPs of Their Responsibility for Actions Taken by CEP Representatives and Agents

In an August 17, 2011 letter from the Maine Public Utilities Commission to all “competitive electricity suppliers,” the MPUC reminded all competitive electricity providers of their responsibility for all actions taken by their representatives or agents when operating in Maine.  The MPUC issued this reminder “[i]n light of the increased number of Competitive Electricity Suppliers (CEP) becoming licensed to provide both aggregator/broker and supplier services” and, apparently, the resulting increase in the number of electricity providers contracting with representatives or agents in the Maine retail electricity market.  More specifically, the MPUC pointed to the requirement in Chapter 305 § 2(C)(3) of its rules, which states that by obtaining a Maine CEP license, the licensee agrees to use reasonable efforts not to conduct business with any entity acting as a CEP in Maine that does not have an MPUC license.

Smart Meter Opt-Out for CMP Customers Approved by MPUC

During Tuesday’s deliberations, the Maine Public Utilities Commission approved smart meter opt-out options for Central Maine Power customers.  The Commission approved two smart meter opt-out options: (1) the option of installing a smart meter with its transmitter turned off and (2) the ability to retain the existing analog meter.  Additionally, customers may choose to relocate smart meters to a different location on the customer’s property, at the customer’s expense.

Both opt-out choices come with costs that must be paid by the customers who select to opt out.  Choosing a digital smart meter with the wireless transmitter turned off will carry an initial charge of $20, plus a $10.50 monthly charge.  Retaining an existing mechanical meter will cost $40 initially, plus a $12 monthly charge.  Low-income residents may qualify for a 50% subsidy of the opt-out cost.  Depending on how many customers ultimately choose something other than a standard smart meter, the costs may be adjusted in the future. So far, an estimated 1% of all customers have asked not to have the new meters installed at their homes and businesses.

Commissioner Vafiades emphasized the need to move forward by shifting the focus to the benefits of smart meters, while allowing those who reject smart meters to opt out: “Based on sound public policy, as allowed by statute and taking into consideration all public correspondence and filings, we conclude that offering a smart meter opt-out options is reasonable and in the public interest. For the long term success of smart meter implementation and to maximize its potential to the fullest, the public needs to be actively engaged in monitoring their usage and real-time price of electricity and modifying their behavior accordingly. To achieve this goal, we need to shift the focus to the benefits of smart meters and allow the small minority to opt out.”

Commissioner Littell noted the Commission’s thorough review of customer concerns and the range of options now available: “We have reviewed every filing, every complaint and every letter sent to this Commission regarding smart meters. Based on our review, we conclude that any CMP residential or small commercial customer should have four choices: 1) the default smart meter which will become the standard meter in CMP territory; 2) the ability to select a smart meter with the transmitter-off; 3) the ability to keep the customer’s existing analog meter; or, 4) the ability to move the new smart meters elsewhere on their property at the customer’s expense.”

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.

MPUC Proposes Significant Changes to Utility Service Area and Infrastructure Map Requirements

The Maine Public Utilities Commission has issued a Notice of Rulemaking to amend its rule relating to utility service areas and infrastructure maps, Chapter 140.  Chapter 140 requires utilities to maintain and file with the Commission electronic maps showing the utility’s service area and depicting the utility’s infrastructure.  The proposed amendments are intended to reflect technological advances as well as the MPUC’s experience working with Chapter 120 and the associated data since the rule was first adopted ten years ago.  Among the proposed amendments is a new requirement that utilities segregate public infrastructure information from confidential infrastructure information (the applicable standard for confidentiality is set forth in 35-A M.R.S.A. § 1311-B), and for utilities to file each set of information separately.  Also, the proposed amendments would eliminate the $500,000 project cost threshold for reporting changes to utility infrastructure on infrastructure maps.  If that amendment is adopted, all changes in utility infrastructure, regardless of the size of the project, will need to be reflected on amended maps.