Maine advances legislation restoring net metering

The Maine state legislature has voted to advance a bill that would amend the state's statute governing the net metering of small distributed renewable energy projects. If enacted into law, the amendment would reverse regulatory changes imposed in 2017 that reduced the value of net energy billing to participating customers.

Maine has allowed customers with distributed renewable energy generation to use the power they produce to offset their electricity bill since the 1980s. In 2017, the Maine Public Utilities Commission amended its rules governing net energy billing to reduce the amount of power that a customer could net against its electric utility bill. The Commission did this by inventing a concept called "gross metering," which allowed electric utilities to collect charges even for power generated and consumed on-site in real time, while requiring participating customers to install a second meter.

The "gross metering" concept was controversial for a variety of reasons, including the fact that it deterred customer adoption of solar power and other distributed renewables (by adding costs while cutting compensation), and the fact that for the first time ever it allowed utilities to collect charges from customers for power produced and consumed entirely on the customer's premises even where that power never went on utility grid facilities.  The Commission later exempted most medium and large customers from this policy after finding that the cost of installing an extra meter wasn't justified, but left the gross metering requirements in its Rule Chapter 313 governing net energy billing. In response, in 2019 various state legislators proposed bills that would alter or restore the net energy billing paradigm.

One of these bills has now received favorable votes in both the state House and Senate. LD 91, An Act to Eliminate Gross Metering, was originally sponsored by Representative Seth Berry. It clarifies the statutory definition of net energy billing, which currently defines the concept as "a billing and metering practice under which a customer is billed on the basis of net energy over the billing period taking into account accumulated unused kilowatt-hour credits from the previous billing period." As amended by LD 91, the definition would specifically define "net energy" as the "difference between the kilowatt-hours delivered by a transmission and distribution utility to the customer over a billing period and the kilowatt-hours delivered by the customer to the transmission and distribution utility over the billing period." This clarification removes the Public Utilities Commission's ability to define "net energy" in any other way. LD 91 also directs the Commission to amend its rules "to be substantively equivalent to the rules in effect on January 1, 2017" (that is, before the Commission's 2017 regulatory amendment.)

LD 91 faces additional votes in the state legislature, before it would move to the desk of Governor Janet Mills for her signature. The legislature is also expected to consider other bills affecting net energy billing or expanding incentives for solar development, later this session.

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.

Maine's energy legislation carryovers from 2017

When the First Regular Session of the 128th Maine State Legislature adjourned earlier this year, its committees reserved a list of bills for further debate in 2018.  A list of these carryover bills published by the legislative information office includes 16 bills carried over by the Joint Standing Committee on Energy, Utilities, and Technology.  While new legislation may be proposed in the legislature's second session, the committee's work in 2018 will include action on these carried-over bills.

Here's an excerpt from the list of bills carried over, focused on the Energy, Utilities, and Technology committee:

• LD 131, An Act To Protect the Biomass Industry
• LD 140, An Act To Authorize a General Fund Bond Issue To Support Entrepreneurial Activity, Attract Business and Enhance Demographic In-migration by Investing in High-speed Broadband Infrastructure and To Amend the Law Governing the Municipal Gigabit Broadband Network Access Fund
• LD 257, An Act To Enable Municipalities Working with Utilities To Establish Microgrids
• LD 260, An Act to Create the Maine Energy Office
• LD 532, An Act to Remove the 100-megawatt Limit on Hydroelectric Generators under the Renewable Resources Laws
• LD 822, An Act to Ensure Fairness among Large Consumers of Natural Gas
• LD 1176, An Act To Ensure the Safety of Low-income Persons Who Are Deaf and Who Use Video and Captioned Phones by Providing Equitable Access to the Internet
• LD 1224, An Act To Allow for Greater Energy Competition in Maine by Amending the Law Governing Electric Generation or Generation-related Assets by Affiliates
• LD 1372, An Act To Increase Broadband Access for Rural Communities
• LD 1373, An Act To Protect and Expand Access to Solar Power in Maine
• LD 1444, An Act Regarding Large-scale Community Solar Procurement
• LD 1472, An Act To Lower the Costs of Broadband Service by Coordinating the Installation of Broadband Infrastructure
• LD 1487, An Act To Control Electricity Transmission Costs through the Development of Nontransmission Alternatives
• LD 1515, An Act To Reduce Electric Rates for Maine Businesses by Amending the Laws Governing Spending from the Regional Greenhouse Gas Initiative Trust Fund
• LD 1610, An Act To Protect Privacy of Online Customer Personal Information
• LD 1632, An Act To Establish the Manufacturing Jobs Energy Program

Based on these bill titles, the committee will be faced with continuing discussion over broadband; regulation and incentives for renewable energy resources including solar, hydroelectricity and biomass; economic development and reduction of electricity rates.

Maine enacts energy bill to promote natural gas, energy efficiency

The Maine Legislature has enacted an omnibus energy bill designed to save consumers over $200 million per year.   For reasons ranging from a reliance on oil for home heating to inadequate natural gas pipeline capacity into New England, Maine’s energy costs are well above the national average. In response, a bipartisan group of legislators pulled together a package of measures to cut energy costs.

The Maine State House, Augusta, Maine.

The resulting bill, LD 1559, "An Act To Reduce Energy Costs, Increase Energy Efficiency, Promote Electric System Reliability and Protect the Environment", brings together elements of over ten other bills that came before the Joint Standing Committee on Energy, Utility, and Technology this year.  Last week, the Legislature enacted the bill by wide margins in both chambers: it received a vote of 131-7 in the House, and 29-6 in the Senate.

Highlights of the bill as enacted include:

Requires the Public Utilities Commission to help cut electricity costs:

• For the first time ever, requires the Public Utilities Commission to work to minimize the cost of energy to Maine’s consumers and to set rates to achieve economic efficiency

Expands heating options:

• Extends utility pilot programs to offer efficient electric heat pumps

Improves energy efficiency:

• Gives the Public Utilities Commission and Efficiency Maine Trust a revised policy directive to reduce energy costs and improve security of the state and local economies by pursuing all cost-effective energy efficiency for homes and businesses, including conservation in both electricity and heating fuel consumption
• Directs Regional Greenhouse Gas Initiative proceeds to lower commercial and industrial energy costs, reduce residential heating energy demand in a fuel-neutral way, and provide rate relief
• Caps electric efficiency spending at no more than 4% of total retail electricity and transmission and distribution sales in Maine
• Gives the Public Utilities Commission improved tools for overseeing efficiency programs
• Uses Maine Yankee litigation settlement funds for energy efficiency investment and rate relief
• Approves the Trust’s contract with Maine utilities for energy efficiency

Lowers electricity and natural gas costs:

• Authorizes the Public Utilities Commission to execute or direct utilities to execute energy cost-reduction contracts if necessary and appropriate to reduce the “basis differential” cost of natural gas in New England and thus to reduce the cost of electricity in Maine
• Protects ratepayers from cost increases resulting from the energy cost-reduction contracts
• Creates the Energy Cost Reduction Trust Fund to hold energy cost-reduction contract revenues, to be held in trust for the purposes of reducing the energy costs of Maine consumers

Improves controls over the cost of electricity transmission:

• Establishes a least cost electric transmission policy that gives the Public Utilities Commission improved tools to evaluate whether non-transmission alternatives can   address identified needs at lower cost

Improves the Regional Greenhouse Gas Initiative:

• Aligns Maine’s carbon emissions budget with other RGGI states’ budgets
• Adopts the new RGGI reforestation offset to benefit both large and small Maine forest owners.
• Directs the Department of Environmental Protection and Public Utilities Commission to develop incentives for consumers to reduce greenhouse gas emissions by switching from oil and coal to alternative fuels such as natural gas, biomass, or other renewables

Brings competition into municipal streetlighting:

• Requires transmission and distribution utilities to give municipalities options to participate in the ownership and management of their own streetlighting systems

Expands ocean energy options:

• Gives consideration to the University of Maine’s deepwater floating offshore wind pilot project and potential ocean energy projects, in addition to Statoil’s proposal

With the bill enacted as an emergency measure, absent a procedural roadblock it will become law later this month.