Maine PUC solicits standard offer proposals

The Maine Public Utilities Commission has issued Requests for Proposals for retail electricity standard offer service.  At stake is the right to supply default electricity service to customers of Maine's two largest utilities -- as well as the price those customers will pay for power.

Maine restructured its electricity sector in the late 1990s.  Formerly, utilities owned both power plants and the wires and other infrastructure needed to supply consumers with electricity.  But as of March 1, 2000, investor-owned transmission and distribution utilities may own and operate wires, but generally cannot have a financial interest in or otherwise control generation or generation-related assets.  Power plants became "deregulated" from the perspective of state retail rate regulation, and were sold off by the utilities.  At the same time, Maine law created a new kind of entity called a "competitive electricity provider" to perform the role of supplying electricity as a commodity.

Customers can choose among supply offers from competitive electricity providers.  Suppliers can offer specific types of product (e.g. 100% renewable power, locally-sourced) or particular contract terms (e.g. pricing schedules, payment terms).  Most large industrial energy consumers choose competitive electricity supply under this option, as do many commercial accounts and some homes.

If a customer does not choose a competitive electricity provider, that customer is placed on "standard offer service" by default.  Maine law requires the Maine Public Utilities Commission to arrange for standard offer service though a competitive bid process, and to ensure that standard offer service is available to all customers in Maine.

The pending RFPs cover retail electricity standard offer service for calendar year 2016 for all customer classes in the territories of Central Maine Power (CMP) and Emera Maine-Bangor Hydro District.  Collectively, CMP and Emera Maine deliver approximately eleven million megawatt hours annually, of which about 45% currently comes from standard offer service.

The RFPs and related materials are available on the MPUC website.  Initial proposals are due on October 6, 2015. Following negotiation of non-price terms and a submission of final bid prices, the Commission is expected to select one or more proposals,  Service terms will begin on January 1, 2016.

August 10, 2010 - Martha's Vineyard wind; Ocean Energy Institute

A sign seen on the shore of Martha's Vineyard at Aquinnah.  Like Martha's Vineyard and Vinalhaven, many island communities are considering whether wind turbines -- either onshore or offshore -- are a wise move.

In ocean energy news, Matthew Simmons, the founder of the Rockland, Maine-based Ocean Energy Institute has died.  Simmons was the founder Simmons & Co. International, an investment banking firm focusing on energy.  Convinced of the value of ocean energy, in 2007, he founded the Ocean Energy Institute as "a think-tank and venture capital fund addressing the challenges of U.S. offshore renewable energy".  Echoing a trope we have heard often lately, Simmons once gave a slideshow in which he is reported to have said, "The Gulf of Maine will soon become a Silicon Valley and begin proving ocean energy can be captured, processed and turned into a replacement for modern energy and water."

The city of South Portland, Maine is considering forming a nonprofit energy supply company to save citizens money on their electricity supply.  The business, putatively called South Portland Energy, would buy power at wholesale in the NEPOOL market and sell it to the city -- and perhaps also to residential and commercial ratepayers.  This kind of nonprofit competitive electricity supplier can cut ratepayers' supply costs, without requiring the formation of a municipal electric transmission and distribution utility.

Railroad tracks form an important kind of infrastructure; walking and hiking paths form another.  The balance between replacing rail tracks with hiking trails is an interesting policy question.  This Portland Press Herald editorial suggests that foot paths should not replace rail; the two can coexist, but a path should not preclude the use of the right of way for passenger and freight service.

Cogentrix has signed a 20 year contract with Xcel Energy subsidiary Public Service Company of Colorado for the output of its 30 MW concentrating photovoltaic solar energy plant.  The project, located in southern Colorado, relies on a concentrating photovoltaic technology using lenses to focus incoming sunlight onto solar photovoltaic cells.  This results in a higher energy density (in kW per acre) than other solar technologies.