Maine considers distributed generation interconnection reforms

Friday, June 30, 2023

The Maine legislature has enacted a law designed to reform the state's procedures for interconnecting solar projects and other forms of distributed generation resources to the electric grid. The law, An Act to Provide Maine Ratepayers with Equitable Access to Interconnection of Distributed Generation Resources, requires the Public Utilities Commission to appoint an "interconnection ombudsman". The law also requires the PUC to align its interconnection rules with best practices and to prioritize interconnection of solar resources and energy storage systems used to serve on-site load.

Interconnection is an essential component of distributed generation project development and operation. Policies enacted since 2019 have led to a flood of interconnection requests by project developers, seeking access to the grid. Each request must be studied, sequentially, to identify what grid upgrades and interconnection facilities must be built for safe and reliable operation. Large projects and those connected to the interstate transmission grid generally interconnect under federally jurisdictional procedures, like the interconnection procedures adopted by regional grid operator ISO New England

Smaller distributed generation projects in Maine generally use the state-jurisdictional interconnection process, which operates under the PUC's Chapter 324 rule. The rule specifies rights and responsibilities of both the project developer as interconnection customer and the utility. The recent flood of interconnection requests has caused project developers to complain about lengthy timelines, inflexible procedures, and missed deadlines by utilities.

To address these concerns, the Maine legislature recently enacted the distributed generation interconnection reform act, Public Laws of 2023 chapter 307. Introduced as LD 327, the law as enacted requires the PUC to appoint an interconnection ombudsman to assist people seeking state-jurisdictional interconnection of solar resources and energy storage systems. The interconnection ombudsman's duties include tracking interconnection disputes, facilitating their efficient and fair resolution, reviewing utility policies to assess opportunities to reduce disputes, convening stakeholder groups, and reporting. The position must be funded by interconnection fees or sources other than general ratepayer funds, and the PUC must make a good faith effort to appoint the ombudsman within 12 months of the law's effective date.

The law also requires the PUC to adopt interconnection rules that prioritize interconnection of solar resources and energy storage systems owned by customers of investor-owned transmission and distribution utilities and used to serve an on-site load. It also requires the PUC to convene an interconnection working group. 

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