May 25, 2011 - Maine declines to change renewables standard

The Maine Legislature's energy committee has just declined to change the state's ten year commitment to renewable power.

On Monday, I noted that Governor LePage's energy bill, LD 1570, proposed to freeze Maine's renewable portfolio standard.  His stated intent was to lower the cost of energy to consumers.

Further analysis suggested that the cost of the renewables law was far smaller than its economic benefits, and that deviating from the stable increase in renewable power would send a market signal to developers that they cannot count on revenue from Maine renewable energy credits.  Project developers, energy consumers, and environmentalists decried the proposal as "stepping over dollars to get to nickels".

This afternoon, the Joint Standing Committee on Energy, Utilities and Technology voted unanimously to pass a significantly pruned version of that bill.  If enacted, the revised LD 1570 would not deviate from Maine's annual 1% increase in the sourcing of renewable energy.  Rather, the bill calls for a study of the costs and benefits of Maine's renewable portfolio standard.

May 23, 2011 - Maine considers RPS changes

The Maine Legislature is considering changes to Maine's renewable portfolio standard.  Since 2007, Maine law has required electricity suppliers to source an increasing portion of their energy from qualified new renewable resources.  This portion of new renewable power is scheduled to increase 1% annually, reaching 10% by 2017.  Proponents point to this long-term state commitment to renewable power as essential to securing financing for new renewable projects in Maine.

The rotunda in the Maine State House.

LD 1570, developed by Governor LePage, proposes to freeze this commitment at the current year's 4%.

You can find the original text of LD 1570 here.  This proposal is generating significant debate over the cost of energy, whether or how much Maine's renewables law increases consumer costs, and the economic development value of siting renewable projects in Maine.

The Portland Press Herald has published an editorial arguing that the Governor has not made the case for freezing the renewable portfolio standard.  The Bangor Daily News ran a similar editorial, noting that the Governor's bill would not make a dent in electricity costs, but would stifle economic growth.

The bill is scheduled for further committee work on Wednesday.