New England power plants with over 5,200 megawatts of electric generation capacity have retired or announced plans to retire since 2013, according to the region's electric grid operator. Most of this capacity comes from facilities powered by coal, oil, and nuclear fuels -- and most of these retiring facilities are located in Massachusetts.
Regional transmission organization ISO New England Inc. operates the wholesale electricity markets covering all six New England states (except northernmost Maine.) But changes in technology and the prices of both fuels and renewable generators are significantly reshaping the mix of generating resources used to power the region, with older and more carbon-emitting power plants retiring and new, cleaner generating capacity being proposed and developed.
According to ISO New England, more than 5,200 MW of generating capacity have retired or announced plans to retire since 2013. But the geographic effects of these retirements are not spread evenly across the region. The grid operator notes that 3,778 megawatts (or 72%) of this retiring capacity comes from generators located in Massachusetts, such as the Pilgrim Station nuclear power plant (slated to close in 2019) and the 1,537-megawatt Brayton Point coal-fired plant which closed in 2017. 737 megawatts of retiring capacity are located in Connecticut. Another 640 are located in Vermont -- primarily Entergy's now-closed Vermont Yankee nuclear power plant.
Meanwhile, ISO New England says just 4 megawatts of New Hampshire capacity has retired or announced plans to retire since 2013, plus 13 megawatts in Rhode Island and another 37 in Maine.
The grid operator reports that another 5,000 megawatts of coal- and oil-fired generators are at risk for retirement in coming years.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
U.S. to export more energy by 2020 than it imports, projects EIA
Tuesday, January 29, 2019
Federal energy analysts project that the United States will export more energy than it imports by 2020, making the nation a net energy exporter for the first time since the 1950s. Fossil fuels represent the largest volumes of this international trade.
The United States both exports and imports energy in a variety of forms, including natural gas, coal and coke, petroleum and other liquids, and electricity. According to the U.S. Energy Information Administration, the United States has long been a net exporter of coal and coke. In 2017, the nation began exporting more natural gas than it imports, primarily in the form of liquified natural gas or LNG. EIA notes that electricity trades with neighboring Canada and Mexico represent "a relatively small part of U.S. net energy trade flows."
The EIA projects that domestic production of crude oil, natural gas, and natural gas plant liquids will continue to grow at a faster rate than U.S. energy consumption over the next decade, meaning the balance of these fuels will be exported. EIA projects that due to "evolving trade flows of liquid fuels and natural gas," increasing exports of these fuels will tip the trade balance to where the U.S. is a net exporter of energy by 2020. When this shift occurs, it will represent the first time that the United States exports more energy than it imports on an annual basis since 1953.
Exactly how large the nation's net exports might be -- and how long the net-exporter status might last -- depend on a variety of assumptions about matters including oil and gas prices, resource extraction technologies, and possible changes to law. Under EIA's reference case which reflects current laws and regulations, the U.S. begins exporting more energy than it imports on an annual basis in 2020 and maintains that status through 2050. In other cases featuring lower prices or extraction rates for oil and gas, EIA projects that U.S. will return to net-importer status by the mid- to late-2030s.
Changes to laws and regulations could also affect the trade balance for energy products.
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| Source: U.S. Energy Information Administration |
The EIA projects that domestic production of crude oil, natural gas, and natural gas plant liquids will continue to grow at a faster rate than U.S. energy consumption over the next decade, meaning the balance of these fuels will be exported. EIA projects that due to "evolving trade flows of liquid fuels and natural gas," increasing exports of these fuels will tip the trade balance to where the U.S. is a net exporter of energy by 2020. When this shift occurs, it will represent the first time that the United States exports more energy than it imports on an annual basis since 1953.
Exactly how large the nation's net exports might be -- and how long the net-exporter status might last -- depend on a variety of assumptions about matters including oil and gas prices, resource extraction technologies, and possible changes to law. Under EIA's reference case which reflects current laws and regulations, the U.S. begins exporting more energy than it imports on an annual basis in 2020 and maintains that status through 2050. In other cases featuring lower prices or extraction rates for oil and gas, EIA projects that U.S. will return to net-importer status by the mid- to late-2030s.
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| Source: U.S. Energy Information Administration |
EIA says 2016 U.S. energy expenditures declined to lowest share of GDP since 1970
Thursday, January 24, 2019
According to the most recent data released by the U.S. Energy Information Administration, in 2016, U.S. energy expenditures declined for the fifth consecutive year, reaching $1.0 trillion in 2016. This represents a 9% decrease in real terms from 2015.
Adjusted for inflation, total energy expenditures in 2016 were the lowest since 2003. Expressed as a percent of gross domestic product (GDP), total energy expenditures were 5.6% in 2016, the lowest share of GDP since at least 1970. According to EIA, contributing factors include steady annual increases in GDP since 2010, coupled with steady annual decreases in total energy expenditures since 2011.
Meanwhile, annual total U.S. energy consumption has remained virtually flat since 2013. So the recent decreases in total energy expenditures are generally the result of lower energy prices. But EIA says it doesn’t expect this trend to continue, as average energy prices of products such as motor gasoline, natural gas, and retail electricity have all increased since 2016.
EIA also notes significant geographic variation in state total energy expenditures as a percent of state GDP. In 2016, Louisiana led the pack as it has every year since EIA started tracking this metric in 1997, with 2016 energy expenditures per GDP of 11.1% in 2016. EIA points to Louisiana’s large industrial sector consumption, including its energy-intensive petrochemical industry, as the biggest piece of the explanation.
But even while leading the nation, Louisiana set its own record-low ratio of energy expenditures per GDP, at a level that was less than half of the state’s previous high (26.5%) which was reached in 2008. Meanwhile, District of Columbia (1.6%), New York (3.3%), Massachusetts (4.3%), California (4.3%), and Delaware (4.4%) had the lowest energy expenditures per GDP in 2016. EIA says this reflects relatively high consumption in less energy-intensive residential and commercial sectors as well as relatively high state GDP.
Adjusted for inflation, total energy expenditures in 2016 were the lowest since 2003. Expressed as a percent of gross domestic product (GDP), total energy expenditures were 5.6% in 2016, the lowest share of GDP since at least 1970. According to EIA, contributing factors include steady annual increases in GDP since 2010, coupled with steady annual decreases in total energy expenditures since 2011.
 | ||
| Source: EIA, "In 2016, U.S. energy expenditures per unit GDP were the lowest since at least 1970" |
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| Source: EIA, "In 2016, U.S. energy expenditures per unit GDP were the lowest since at least 1970" |
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| Source: EIA, "In 2016, U.S. energy expenditures per unit GDP were the lowest since at least 1970" |
But even while leading the nation, Louisiana set its own record-low ratio of energy expenditures per GDP, at a level that was less than half of the state’s previous high (26.5%) which was reached in 2008. Meanwhile, District of Columbia (1.6%), New York (3.3%), Massachusetts (4.3%), California (4.3%), and Delaware (4.4%) had the lowest energy expenditures per GDP in 2016. EIA says this reflects relatively high consumption in less energy-intensive residential and commercial sectors as well as relatively high state GDP.
PNGTS applies for Westbrook XPress Phase I pipeline project
Monday, January 21, 2019
An interstate natural gas pipeline system bringing gas from eastern Canada into Maine has asked U.S. regulators for approvals necessary for a project that would marginally increase the system's capacity to bring gas to Maine and the New England market.
At issue is Portland Natural Gas Transmission System (PNGTS), a pipeline that spans New England from the Canadian border to pipeline connections in New Hampshire, Maine, and Massachusetts. Its facilities include 142 miles of wholly-owned mainline from an interconnection with Trans-Québec & Maritimes Pipeline Inc. at the U.S./Canada border to Westbrook, Maine plus two laterals, as well as 101 miles of mainline from Westbrook to Dracut, Massachusets, which PNGTS owns jointly with another interstate pipeline, Maritimes & Northeast Pipeline, L.L.C. PNGTS operates pursuant to a number of federal approvals, including a certificate issued by the Federal Energy Regulatory Commission and a Presidential Permit authorizing its facilities for importing gas from (or exporting gas to) Canada.
On December 21, PNGTS applied to the Commission for authorization for Phase I its "Westbrook Xpress Project," which would increase the certificated capacity on the northern portion of its system from Pittsburg, New Hampshire, to Westbrook, Maine, by 42.482 million cubic feet per day (MMcf/d), effective November 1, 2019. The pipeline's application includes both public materials and materials that are protected against public disclosure as "controlled unclassified information", including privileged information and "critical energy infrastructure information."
In the public materials, PNGTS describes continued increased demand for natural gas: "Growing demand for natural gas for space heating, industrial processes and electric generation is driving a commensurate demand for incremental pipeline deliverability from abundant North American supply basins." PNGTS says its Westbrook XPress project "will provide access to, and allow for the transportation of, natural gas supplies from key North American supply basins such as Marcellus, Utica, and others" via Canadian pipelines. The company describes its Westbrook Xpress project is "a solution to meet this growing demand in areas of North America that have some of the highest residential gas prices in the winter." It envisions two distinct phases of the project: Phase I with an incremental 42.482 million cubic feet per day of certificated capacity, with an anticipated Phase II to bring an incremental 62.989 million cubic feet per day of capacity.
The Commission has docketed PNGTS's application for Phase I of the Westbrook XPress project as Docket No. CP19-32, and has issued public notice of the opportunity to intervene or comment through 5:00 pm Eastern Time on January 29, 2019.
At issue is Portland Natural Gas Transmission System (PNGTS), a pipeline that spans New England from the Canadian border to pipeline connections in New Hampshire, Maine, and Massachusetts. Its facilities include 142 miles of wholly-owned mainline from an interconnection with Trans-Québec & Maritimes Pipeline Inc. at the U.S./Canada border to Westbrook, Maine plus two laterals, as well as 101 miles of mainline from Westbrook to Dracut, Massachusets, which PNGTS owns jointly with another interstate pipeline, Maritimes & Northeast Pipeline, L.L.C. PNGTS operates pursuant to a number of federal approvals, including a certificate issued by the Federal Energy Regulatory Commission and a Presidential Permit authorizing its facilities for importing gas from (or exporting gas to) Canada.
On December 21, PNGTS applied to the Commission for authorization for Phase I its "Westbrook Xpress Project," which would increase the certificated capacity on the northern portion of its system from Pittsburg, New Hampshire, to Westbrook, Maine, by 42.482 million cubic feet per day (MMcf/d), effective November 1, 2019. The pipeline's application includes both public materials and materials that are protected against public disclosure as "controlled unclassified information", including privileged information and "critical energy infrastructure information."
In the public materials, PNGTS describes continued increased demand for natural gas: "Growing demand for natural gas for space heating, industrial processes and electric generation is driving a commensurate demand for incremental pipeline deliverability from abundant North American supply basins." PNGTS says its Westbrook XPress project "will provide access to, and allow for the transportation of, natural gas supplies from key North American supply basins such as Marcellus, Utica, and others" via Canadian pipelines. The company describes its Westbrook Xpress project is "a solution to meet this growing demand in areas of North America that have some of the highest residential gas prices in the winter." It envisions two distinct phases of the project: Phase I with an incremental 42.482 million cubic feet per day of certificated capacity, with an anticipated Phase II to bring an incremental 62.989 million cubic feet per day of capacity.
The Commission has docketed PNGTS's application for Phase I of the Westbrook XPress project as Docket No. CP19-32, and has issued public notice of the opportunity to intervene or comment through 5:00 pm Eastern Time on January 29, 2019.
Will Maine change its net metering law?
Friday, January 18, 2019
Several pieces of proposed Maine legislation could affect the state's version of net metering. Here's a quick look at Maine's net energy billing policy, how it could change, and what that might mean for consumers.
Maine's electricity rules allow consumers with certain distributed generation facilities (like solar panels) to elect "net energy billing." Like other forms of net metering, the basic concept is that consumers can use their on-site generation to offset their purchases of electricity from the grid, both in real time, and by banking credits for power exported to the grid during periods of time when on-site generation exceeds the consumer's load.
The Maine Public Utilities Commission first adopted a net energy billing rule in the 1980s, allowing customers to net imports and exports within any month or other billing period, in recognition that consumers should not be required to install an extra meter to measure exports from small renewable power facilities and other distributed generation. In 1998, the Commission revised its rule to allow annualized netting as a means of encouraging the use of small-scale renewable technologies designed primarily to serve the customer’s own needs.
In 2017, the Commission revised its rule to reduce the benefits of net metering for future projects, both by reducing the credit for nettable energy, and by shifting the state to a "gross metering" paradigm. Under gross metering, which has been called "one of the strangest and most regressive policies for valuing residential solar in the United States," utilities collect charges even for power generated and consumed on-site in real time. While the Commission later granted an exemption from its gross metering policy for most medium and large customers after finding that the cost of installing an extra meter (estimated at over $3,000 per installation) wasn't justified, the revised rule remains on the books for now.
But further possible changes to net energy billing figure among the numerous energy issues implicated by the list of legislation proposed for the Maine State Legislature's 2019 session. Several bills that have been printed so far suggest that the Legislature will consider various bills that would eliminate gross metering (like LD 91, An Act to Eliminate Gross Metering and LD 143, An Act To Protect Electric Ratepayers from Gross Output Metering Costs), or would replace net energy billing with a market-based mechanism (like LD 41, An Act To Replace Net Energy Billing with a Market-based Mechanism), among other measures. Other bill titles suggest possible changes to the state's policy on shared ownership net metering, which allows multiple customers to offset their load with generation from a community solar project or other off-site facility.
The Legislature's Joint Standing Committee on Energy, Utilities and Technology will schedule public hearings on these bills. The Committee has scheduled public hearings on LD 41 and LD 91 for 1:00 p.m. on January 29, 2019.
Maine's electricity rules allow consumers with certain distributed generation facilities (like solar panels) to elect "net energy billing." Like other forms of net metering, the basic concept is that consumers can use their on-site generation to offset their purchases of electricity from the grid, both in real time, and by banking credits for power exported to the grid during periods of time when on-site generation exceeds the consumer's load.
The Maine Public Utilities Commission first adopted a net energy billing rule in the 1980s, allowing customers to net imports and exports within any month or other billing period, in recognition that consumers should not be required to install an extra meter to measure exports from small renewable power facilities and other distributed generation. In 1998, the Commission revised its rule to allow annualized netting as a means of encouraging the use of small-scale renewable technologies designed primarily to serve the customer’s own needs.
In 2017, the Commission revised its rule to reduce the benefits of net metering for future projects, both by reducing the credit for nettable energy, and by shifting the state to a "gross metering" paradigm. Under gross metering, which has been called "one of the strangest and most regressive policies for valuing residential solar in the United States," utilities collect charges even for power generated and consumed on-site in real time. While the Commission later granted an exemption from its gross metering policy for most medium and large customers after finding that the cost of installing an extra meter (estimated at over $3,000 per installation) wasn't justified, the revised rule remains on the books for now.
But further possible changes to net energy billing figure among the numerous energy issues implicated by the list of legislation proposed for the Maine State Legislature's 2019 session. Several bills that have been printed so far suggest that the Legislature will consider various bills that would eliminate gross metering (like LD 91, An Act to Eliminate Gross Metering and LD 143, An Act To Protect Electric Ratepayers from Gross Output Metering Costs), or would replace net energy billing with a market-based mechanism (like LD 41, An Act To Replace Net Energy Billing with a Market-based Mechanism), among other measures. Other bill titles suggest possible changes to the state's policy on shared ownership net metering, which allows multiple customers to offset their load with generation from a community solar project or other off-site facility.
The Legislature's Joint Standing Committee on Energy, Utilities and Technology will schedule public hearings on these bills. The Committee has scheduled public hearings on LD 41 and LD 91 for 1:00 p.m. on January 29, 2019.
Considering a Green New Deal
Tuesday, January 15, 2019
Will 2019 bring a "Green New Deal" for the U.S. or individual states?
President Franklin D. Roosevelt championed the original "New Deal" in the 1930s, as a series of federal reforms and measures designed to lift the U.S. economy out of the Great Depression. The First New Deal included banking and securities law reforms, funding for emergency relief operations by states and cities, and a Civil Works Administration. Later in the Roosevelt administration, a Second New Deal included labor law reforms, significantly increased federal employment through the Works Progress Administration jobs relief program, and the Social Security Act, among other measures.
More recently, the notion of a "Green New Deal" has emerged from a variety of sources. While the details of what constitutes a Green New Deal vary depending on the proponent, the basic concept most proposals have in common is a significant investment in clean energy to spur employment and revenue. For example:
Whatever ultimate fate these proposals meet, the concept of stimulating the economy and improving environmental performance through investment in clean energy and other green infrastructure projects will likely remain on the table for the foreseeable future. Legislatures and policymakers will be faced with challenges and opportunities in crafting measures that will succeed, in terms of both enactment and actually making a difference. If nothing else, 2019 will bring continued discussion across all levels of government about how best to move the U.S. and individual states forward.
President Franklin D. Roosevelt championed the original "New Deal" in the 1930s, as a series of federal reforms and measures designed to lift the U.S. economy out of the Great Depression. The First New Deal included banking and securities law reforms, funding for emergency relief operations by states and cities, and a Civil Works Administration. Later in the Roosevelt administration, a Second New Deal included labor law reforms, significantly increased federal employment through the Works Progress Administration jobs relief program, and the Social Security Act, among other measures.
More recently, the notion of a "Green New Deal" has emerged from a variety of sources. While the details of what constitutes a Green New Deal vary depending on the proponent, the basic concept most proposals have in common is a significant investment in clean energy to spur employment and revenue. For example:
- Mark Hertsgaard's 1998 book Earth Odyssey culminated with his vision of a "Global Green Deal" to transform global economies based on the New Deal.
- New York Times columnist Thomas Friedman has been credited with coining the "Green New Deal" phrase in a pair of opinion pieces in 2007. At the time, Friedman envisioned the government as "not funding projects, as in the original New Deal, but seeding basic research, providing loan guarantees where needed, and setting standards, taxes and incentives" to spawn business opportunities in clean power.
- In his 2008 presidential campaign, President Obama proposed addressing the nation's economic crisis by using green investments to promote new jobs, and the 2009 stimulus act included substantial measures along these lines which have been called a Green New Deal.
- In 2009, a United Nations program published a report calling for a "Global Green New Deal," again seeking transformation of global economies through investment in clean energy, systems and infrastructure.
Whatever ultimate fate these proposals meet, the concept of stimulating the economy and improving environmental performance through investment in clean energy and other green infrastructure projects will likely remain on the table for the foreseeable future. Legislatures and policymakers will be faced with challenges and opportunities in crafting measures that will succeed, in terms of both enactment and actually making a difference. If nothing else, 2019 will bring continued discussion across all levels of government about how best to move the U.S. and individual states forward.
Energy issues in Maine's 2019 legislative requests
Wednesday, January 9, 2019
With the 129th Maine Legislature convened for its first regular session, the Office of the Revisor of Statutes has released a list of the titles of proposed legislation timely submitted by legislators. While the text of most of these legislative requests has not yet been publicly released, the preliminary list of working titles of over 2,000 precloture legislator bills suggests the scope of issues that will come before the Maine State Legislature in 2019. On energy matters, themes emerging from this list include reforms to Maine's renewable portfolio standard; efforts to reduce greenhouse gas emissions; incentives for microgrids, renewable energy and electric vehicles; and changes to energy efficiency standards for most newly constructed buildings.
Based on the working titles and legislative committee assignments, a number of bills will propose changes to Maine's renewable portfolio standard or other laws regarding renewable energy. Among others, these bills could include:
Based on the working titles and legislative committee assignments, a number of bills will propose changes to Maine's renewable portfolio standard or other laws regarding renewable energy. Among others, these bills could include:
- LR 26, An Act To Update Maine's Renewable Energy Policy (Spkr. Gideon of Freeport)
- LR 82, An Act To Update the State's Renewable Energy Goals (Rep. Berry of Bowdoinham)
- LR 119, Resolve, To Establish a Working Group To Develop a Stand-alone Renewable Energy Certificate Program for the Biomass Industry (Sen. Carpenter of Aroostook)
- LR 403, An Act To Diversify Maine's Energy Portfolio with Renewable Energy (Rep. Hubbell of Bar Harbor)
- LR 845, An Act To Encourage the Use of Renewable Energy (Sen. Lawrence of York)
- LR 872, An Act To Extend to December 31, 2020 the Deadline for Community-based Renewable Energy Projects To Become Operational (Rep. Higgins of Dover-Foxcroft)
- LR 1034, An Act To Establish a Green New Deal for Maine (Rep. Maxmin of Nobleboro)
- LR 1123, An Act To Repeal the 100 Megawatt Limit on Power Generation (Rep. Hanley of Pittston)
- LR 1405, An Act To Clarify the Definition of "Renewable Capacity Resource" (Rep. Babine of Scarborough)
- LR 1431, An Act To Study Transmission Solutions To Enable Renewable Energy Investment in the State (Rep. Berry of Bowdoinham)
- LR 1470, An Act To Modernize Maine's Renewable Portfolio Standard (Sen. Lawrence of York)
- LR 1558, An Act To Increase Maine-based Energy Sources (Pres. Jackson of Aroostook)
- LR 1616, An Act To Reform Maine's Renewable Portfolio Standard (Sen. Vitelli of Sagadahoc)
- LR 1803, An Act To Benefit Maine Consumers, Businesses and Communities through Expanded Renewable Energy (Sen. Dow of Lincoln)
- LR 15, An Act To Eliminate Gross Metering (Rep. Berry of Bowdoinham)
- LR 299, An Act To Replace Net Energy Billing with a Market-based Mechanism (Rep. O'Connor of Berwick)
- LR 404, An Act To Protect Ratepayers from Gross-metering Costs (Rep. Hubbell of Bar Harbor)
- LR 535, An Act To Eliminate the Cap on Solar Energy Generation Farms (Sen. Miramant of Knox)
- LR 536, An Act To Require Transmission and Distribution Utilities To Purchase Electricity from Renewable Resources at Certain Prices (Sen. Miramant of Knox)
- LR 1259, An Act To Eliminate Restrictions on Community Solar Projects (Rep. Higgins of Dover-Foxcroft)
- LR 1621, An Act To Expand Community-based Solar Energy in Maine (Sen. Sanborn of Cumberland)
- LR 18, An Act To Allow Microgrids That Are in the Public Interest (Rep. Devin of Newcastle)
- LR 213, An Act To Authorize Businesses Located Adjacent to Electric Power Generators To Obtain Power Directly (Rep. Campbell of Orrington)
- LR 1464, An Act To Allow the Direct Sale of Electricity (Sen. Woodsome of York)
- LR 254, An Act To Develop a State Energy Plan To Provide a Pathway to a Fossil-free Energy Portfolio (Rep. Devin of Newcastle)
- LR 1493, An Act To Ensure the Regional Greenhouse Gas Initiative Trust Fund Continues To Promote Energy Efficiency and Benefit Maine Ratepayers (Rep. Wadsworth of Hiram)
- LR 862, An Act To Provide Purchase Rebates for Battery Electric Vehicles and Fuel Cell Electric Vehicles (Rep. Ingwersen of Arundel)
- LR 1380, An Act To Encourage Municipalities, State Agencies, Colleges and Universities To Adopt Electric Vehicles (Rep. Ingwersen of Arundel)
- LR 1687, An Act To Create an Electric Vehicle Tax Credit (Sen. Chenette of York)
- LR 561, An Act To Amend the Maine Uniform Building and Energy Code (Rep. Kessler of South Portland)
- LR 537, An Act To Strengthen the Maine Uniform Building and Energy Code (Rep. Caiazzo of Scarborough)
- LR 619, An Act Regarding the Maine Uniform Building and Energy Code (Rep. Ingwersen of Arundel)
- LR 866, An Act To Amend the Laws Governing the Maine Uniform Building and Energy Code (Rep. Rykerson of Kittery)
- LR 1743, An Act Regarding the Application and Administration of the Maine Uniform Building and Energy Code (Rep. Fecteau of Biddeford)
Maine microgrid legislation proposed
Thursday, January 3, 2019
Could Maine unlock the potential of local energy grids through legislative action? As the 129th Maine Legislature begins its first regular session, legislators will consider at least one bill designed to encourage "microgrids." As an alternative or complement to traditional central electric utility development, microgrids are considered to be one key component of
the "smart grid," capable of improving
power reliability and quality,
increasing system energy
efficiency, and providing the
possibility of grid-independence
to individual end-user sites.
While the U.S. electric industry of the 20th century was characterized by consolidation of utility service into large utility service territories, microgrids represent an alternative or complementary model for connecting customers to energy resources. The U.S. Department of Energy defines a "microgrid" as "a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode.’’ The Energy Department notes that microgrids can provide consumers benefits such as backup for the grid in case of emergencies, cost reduction, energy independence, reduced environmental impacts, and integration of local resources like small-scale generation or electric storage. Other states, including New York and Massachusetts are taking action to facilitate the development of microgrids, as is the federal government.
The 129th Maine Legislature will consider a bill known as LD 13, An Act To Allow Microgrids That Are in the Public Interest. Sponsored by Representative Michael Devin of Newcastle, the bill defines a “new microgrid” as “a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the electric grid and can connect and disconnect from the electric grid to enable the new microgrid to operate in both electric grid-connected mode and nongrid-connected mode, also referred to as island mode, and that is constructed after October 1, 2019.”
LD 13 would create a process through which the Maine Public Utilities Commission would approve the construction and operation of a new microgrid, if the Commission found that the operation of the new microgrid to be in the public interest and that other defined criteria were satisfied. These additional criteria include that the new microgrid will serve a total load of no more than 10 megawatts, that the small-scale electrical generation sources located close to where the generated electricity is used must meet Maine’s renewable portfolio standard, that there is a relationship between the proposed new microgrid operator and consumers within the area to be served by the proposed new microgrid, and that the reliability and security of the electric system will not be negatively affected. The criteria also require that the person proposing the new microgrid must have financial capacity and technical capability to operate the microgrid, and that the proponent can’t be an investor-owned transmission and distribution utility or its affiliate or affiliated interest.
LD 13 would also amend an existing law which currently gives transmission and distribution utilities the right to construct or maintain electric lines in, upon, along, over, across or under a road, street or other public way, but which generally makes it harder for entities other than transmission and distribution utilities to construct or maintain electric lines in roads. The amendment would extend the transmission and distribution utilities’ rights to a new category of people: those who construct, maintain or operate a new microgrid approved by the Commission.
The Legislature has referred LD 13 to its Joint Standing Committee on Energy, Utilities and Technology. As of January 3, the Committee had not yet scheduled a public hearing on the bill.
While the U.S. electric industry of the 20th century was characterized by consolidation of utility service into large utility service territories, microgrids represent an alternative or complementary model for connecting customers to energy resources. The U.S. Department of Energy defines a "microgrid" as "a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode.’’ The Energy Department notes that microgrids can provide consumers benefits such as backup for the grid in case of emergencies, cost reduction, energy independence, reduced environmental impacts, and integration of local resources like small-scale generation or electric storage. Other states, including New York and Massachusetts are taking action to facilitate the development of microgrids, as is the federal government.
The 129th Maine Legislature will consider a bill known as LD 13, An Act To Allow Microgrids That Are in the Public Interest. Sponsored by Representative Michael Devin of Newcastle, the bill defines a “new microgrid” as “a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the electric grid and can connect and disconnect from the electric grid to enable the new microgrid to operate in both electric grid-connected mode and nongrid-connected mode, also referred to as island mode, and that is constructed after October 1, 2019.”
LD 13 would create a process through which the Maine Public Utilities Commission would approve the construction and operation of a new microgrid, if the Commission found that the operation of the new microgrid to be in the public interest and that other defined criteria were satisfied. These additional criteria include that the new microgrid will serve a total load of no more than 10 megawatts, that the small-scale electrical generation sources located close to where the generated electricity is used must meet Maine’s renewable portfolio standard, that there is a relationship between the proposed new microgrid operator and consumers within the area to be served by the proposed new microgrid, and that the reliability and security of the electric system will not be negatively affected. The criteria also require that the person proposing the new microgrid must have financial capacity and technical capability to operate the microgrid, and that the proponent can’t be an investor-owned transmission and distribution utility or its affiliate or affiliated interest.
LD 13 would also amend an existing law which currently gives transmission and distribution utilities the right to construct or maintain electric lines in, upon, along, over, across or under a road, street or other public way, but which generally makes it harder for entities other than transmission and distribution utilities to construct or maintain electric lines in roads. The amendment would extend the transmission and distribution utilities’ rights to a new category of people: those who construct, maintain or operate a new microgrid approved by the Commission.
The Legislature has referred LD 13 to its Joint Standing Committee on Energy, Utilities and Technology. As of January 3, the Committee had not yet scheduled a public hearing on the bill.
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