Maine microgrid legislation proposed

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.