Maine PUC adopts RPS rule reforms

The Maine Public Utilities Commission has adopted an updated rule governing the state's electric renewable portfolio standards, following the enactment of a law that significantly expanded the renewable mandate.

During its 2019 session, the Maine State Legislature enacted a variety of laws designed to address climate change and promote renewable resources. These laws included a significant expansion of Maine's renewable portfolio standards, which generally require retail electricity suppliers to demonstrate that defined portions of the power they sell came from renewable resources by obtaining credits known as RECs. As amended, Maine law now contemplates four separate renewable portfolio standards -- the preexisting 30% Class II and 10% Class I standards, plus the newly enacted Class IA and thermal standards. The new Class IA requirement increases from 2.5% of retail sales in 2020 to 40% in 2030; the thermal REC mandate increases from 0.4% in 2021 to 4% in 2030.

The law required the Commission to adopt rules implementing the new standards. In August 2019, the Commission issued its notice of rulemaking, proposing to amend its rule Chapter 311 governing the renewable portfolio standards, along with a draft revised rule. After receiving public comment, the Commission deliberated on November 8, 2019 and issued an order adopting the final rule. Issues addressed in the final rule include a process through which most Class I resources may also qualify as Class IA resources, and setting the alternative compliance payment rate at the maximum $50 level.

The 2019 RPS reform law also requires the Commission to conduct a series of solicitations to procure long-term contracts for an annual amount of energy or RECs from Class IA resources equal to 14% of Maine’s annual retail electricity sales, with contracts from the first procurement round to be approved no later than December 31, 2020. Separately, the Legislature also enacted laws expanding net metering and creating utility procurement programs for distributed generation.