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5 days ago
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Committee backs clean energy credit reform estimated to produce $67M yearly in ratepayer savings
Natural gas meter. (Photo by Bill Oxford/ Getty Images) The legislative committee tasked with wading through the many proposals brought forward this session to address the problems with the state's clean energy credit program is advancing a bill that critics say doesn't go far enough. On Thursday night, the Maine Legislature's Energy, Utilities and Technology Committee voted along party lines with the majority in favor of an amended version of LD 1777. The bill Democrats advanced to the full Legislature asks the Governor's Energy Office to develop a successor program for front-of-the-meter net energy billing projects sometime next year. The Public Utilities Commission would need to approve the plan, but only if the benefits to ratepayers outweighs the costs. Net energy billing is a utility program designed to encourage customers to install or participate in small-scale renewable energy projects like solar panels by offering credits to offset their electricity bills. It was expanded in 2019 so customers can use renewable energy generators located outside of their property but within the same utility service territory, such as a community solar project. Front-of-the-meter projects include community solar projects and those included in the state's current tariff rate program, which is used by nonresidential customers. If LD 1777 is enacted, front-of-the-meter projects would no longer be eligible to participate in net energy billing once the successor program is in place. 'I hope that it will lead to the survival in a sustainable way and, perhaps, in a more economically just way for this really important set of programs and for the value that it has produced, as it certainly has,' said Rep. Sophie Warren (D-Scarborough), the bill's sponsor. While the committee rejected other proposals, including those to repeal net energy billing entirely, it carried over some legislation such as LD 1936 that could serve as vehicles for further tweaks to the program in the next legislative session. As LD 1777 advances to the full Maine House of Representatives and Senate, proponents of solar energy fear these changes could harm the future of the industry. During the committee discussion Thursday, Public Advocate Heather Sanborn said if passed the annual savings for ratepayers statewide over the next 16 years are estimated to be an average of $47 million from proposed changes to the tariff rate program and $20 million from changes to the kilowatt hour program. Currently, the kilowatt hour program is open to all customers and provides kilowatt hour credits on participating customers' bills if they install renewable energy generators such as solar panels or join a community solar project, where customers receive a portion of a solar farm's credits. The credits expire after 12 months. This program, in particular, has come under fire for providing generous incentives to solar farm developers that utility customers are helping pay for. LD 1777 creates a monthly charge for kilowatt hour projects starting January 2026 to offset the associated costs currently passed on to ratepayers. There are 1,000 kilowatts in a megawatt and most community solar projects run between one and five megawatts. As of May 20, Maine has 300 community solar projects with a total capacity of just over 1,000 megawatts, according to the Governor's Energy Office's solar dashboard. The proposal outlines a charge of $4.10 per kilowatt of capacity for projects between three and five megawatts and $1.20 per kilowatt of capacity for projects between one and three megawatts. However, Warren said those may be adjusted to whatever number is necessary to achieve $20 million in ratepayer savings in the first year. The tariff rate program for nonresidential customers provides dollar credits for those who use their own projects or share in someone else's. The Public Utilities Commission sets an annual rate for the credits, which also expire after 12 months, depending on the customer's size and utility provider. However, Warren's legislation establishes new, tiered tariff rates for certain projects starting January 2026. The new rates would vary depending on the project's capacity. Republicans on the energy committee opposed the bill, with multiple of them saying it doesn't go far enough to fix the problems net energy billing has created in the state. Sen. Nicole Grohoski (D-Hancock) agreed, but voted in favor because 'doing nothing would be completely irresponsible,' she said. However, she said that if more needs to be done to modify net energy billing in the future to support Maine people who are struggling to keep up with electricity bills, she vowed to 'be loud' about it — whether she's still in office or not. Similarly, Rep. Chris Kessler (D-South Portland) said he was voting in favor 'with a heavy heart.' Admitting it may make him a 'unicorn,' committee co-chair Sen. Mark Lawrence (D-York) said he has been pleased with net energy billing. Though she was disappointed the committee couldn't come to a unanimous vote, Rep. Valli Geiger (D-Rockland) said her fear would be that the legislation goes too far in potentially deterring solar. She said climate change is an existential threat and renewable energy is the only path forward. Maine's clean energy sector has admitted net energy billing can be improved, but has cautioned lawmakers against retroactive changes to the program that could undermine investor confidence. Many of them were disappointed in the committee's decision to advance LD 1777, which they feel includes 'drastic' concessions for the solar industry, according to a news release after the vote. 'The Legislature today chose to both harm participants retroactively and threaten the future of the industry,' said Eliza Donoghue, executive director of the Maine Renewable Energy Association. 'While the program can certainly be improved, it should not occur at the expense of the people and businesses that invested in good faith for our clean energy future.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
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30-04-2025
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Amid rapidly evolving energy goals, Maine lawmakers seek more coordinated grid planning
An aerial view shows high voltage power lines on May 16, 2024, in West Palm Beach, Florida. (Photo by) Energy policy has moved quickly in the past few years as Maine has sought to achieve climate and affordability goals with deadlines that are not so far off. Rep. Gerry Runte (D-York) suspects there hasn't been sufficient time to take a 50,000-foot view to see how all the pieces of energy supply and demand could plan and work together. He's hoping the bipartisan bill he introduced during a public hearing Tuesday afternoon will formalize and increase collaboration between agencies involved in grid planning. 'I need to emphasize: the intent of this bill is not to interfere with the ongoing grid planning process,' Runte told the Legislature's Energy, Utilities and Technology Committee. Rather, its purpose is 'to refine how it interacts with other initiatives and give it a bit of a tune up for future planning.' The grid is the system of transmission and distribution lines that bring electricity from where it is generated to the homes of ratepayers and other points of end use. Last summer, the Public Utilities Commission concluded its process of gathering input on priorities for grid plans. The largest privately owned utilities in the state, Central Maine Power and Versant Power, are required to submit their plans next January, Runte said. Meanwhile, the Governor's Energy Office completed the state's energy plan earlier this year that laid out pathways to achieve climate resilience and affordability goals. The portions of the plan that focused on electricity were based on a supply and demand forecast that considered reliability, emissions reductions, the role of emerging technologies and more, Runte explained. As Runte understands it, that forecast in the state's energy plan looked circuit by circuit to develop a bottom-up analysis. However, the forecasting model used in the Public Utility Commission's grid planning looks at capacity and load data from the regional grid, ISO-New England, taking a more top-down approach. Maine doubles down on commitment to address climate change with updated action plan Given the connection between the state's energy plan and future grid needs, Runte said he believes the agencies involved in grid planning should use the same load forecast. While LD 1726 calls for using the forecasting model in the state energy plan, Runte said he expects robust discussion on which of the two may be more appropriate. Public Advocate Heather Sanborn testified neither for nor against the bill, however, she raised concerns about limiting the forecast model over an uncertain amount of time because energy forecasting models are constantly evolving. The bill also seeks to ensure that future planning considers grid enhancing technologies at the energy distribution level that could improve efficiency and reliability. To do that, the proposal would have the Public Utilities Commission consider adding incentives for improved data and grid monitoring of power quality reliability, the state of infrastructure, as well as capacity. Runte's proposal also addresses the procurement of new energy sources. While the legislation covers multiple aspects of procurement, Runte said the bids for those new sources should be informed by the grid planning process to minimize the amount of new infrastructure. Another aspect of grid planning is energy demand management and non-wires alternatives — or projects that use alternative technology to avoid new investment in the transmission system. Currently, those two components are spread between three different agencies in Maine. Runte's bill would ask the Public Utilities Commission, the Office of Public Advocate and Efficiency Maine to assess how those aspects of planning are shared among them and report back to the Legislature on how the process could be improved. 'The idea of this bill is to strengthen governance by establishing formal linkages to activities that have a direct impact on or perhaps should be subject to the findings of a grid plan,' Runte told the committee. The Public Utilities Commission, as well as the Governor's Energy Office, also offered neutral testimony on the proposal. Though legislative liaison Caroline Colan said the Governor's Energy Office shares Runte's goal of enhancing coordination where feasible in grid planning processes, she said some parts of the bill could be overly prescriptive. SUPPORT: YOU MAKE OUR WORK POSSIBLE
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16-04-2025
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Maine Legislature advances bill to tweak provisions of 2021 transmission line referendum
States are struggling to reach their clean energy goals because of a backlog in transmission capacity that's keeping wind and solar projects off the grid. (Charles Rex Arbogast/The Associated Press) Lawmakers on the Energy, Utilities and Technology Committee voted to advance a bill that would modify the law born out of a 2021 referendum question requiring the Maine Legislature to approve any new high-impact transmission lines. The committee voted 7-4, along party lines of those present, to recommend the passage of LD 810 with some small changes. The legislation is meant to clarify that when the Legislature asks for a new line to be developed, that line should not come back to the Legislature for approval after the review process performed by the Public Utilities Commission. Democrats who were present for the vote supported the bill from Rep. Chris Kessler (D-South Portland), while Republicans voiced concerns about repealing the rule. 'This is appropriate and good public policy to ensure that we are having at least a lower cost of building transmission in the state and ultimately with the goal of reducing costs for ratepayers but not abdicating our responsibility for a thorough review of these projects,' Kessler said, noting that current statute could lead to developers sinking millions of dollars into a project that could ultimately be voted down by lawmakers. 'Not good public policy': Bill would roll back some provisions of 2021 transmission line referendum In 2021, Maine voters approved a ballot question to increase legislative oversight on new transmission lines in a campaign that drew passionate grassroots support and over $60 million in opposition spending fueled mostly by international energy companies. The question was largely seen as a vehicle to stop the controversial 145-mile transmission line through western Maine known as New England Clean Energy Connect. Despite the political and legal hurdles, Central Maine Power's corridor project is expected to be completed later this year. Having worked closely on the 2021 referendum, Sen. Nicole Grohoski (D-Hancock) said the intention was to give the public a way to debate the merits of a line being proposed by an entity other than the Legislature. Given that, she feels LD 810 provides a 'really helpful clarification of the intent of the referendum.' She went on to say that this is an 'opportunity to make it crystal clear that a line that's authorized by the Legislature is different than a line that's being proposed by a for-profit entity.' Rep. Steven Foster (R-Dexter) said he isn't comfortable repealing it because, as it stands, the rule allows those who live in the path of these projects and could face eminent domain takings to appear before the Legislature, rather than receive notification by mail. 'It gives us one more chance to debate, discuss and either approve or not said line,' Foster said. Before casting a vote against, Sen. Matt Harrington (R-York) said he was 'highly conflicted' about the bill. While he believes businesses that want to invest large sums of money in Maine should not have to come before 'this highly emotional group of people we call the Maine Legislature anymore than possible,' he acknowledged that more often, the general public doesn't have concerns about such projects until after the route is determined, which normally comes after preemptive legislative approval. Before the committee voted, Kessler proposed amending the bill to insert the word 'statutory' to clarify that transmission lines proposed by agencies with the statutory authority to do so will be deemed to have the necessary legislative approval. The legislative analyst said she could come back to the committee with further language suggestions to better define when an agency has that sort of authority. SUPPORT: YOU MAKE OUR WORK POSSIBLE
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11-04-2025
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List of proposals to reform Maine's clean energy program continues to grow
Solar panels in Damariscotta, Maine. (Photo by Evan Houk/ Maine Morning Star) The efforts to modify Maine's solar energy incentive program continued Thursday as lawmakers introduced two more proposals to rework net energy billing. The Legislature's Energy, Utilities and Technology Committee held a public hearing Thursday afternoon on the bills that as packed as the late February hearing on several proposals to tweak or toss net energy billing. Rather than scrap it altogether, the latest round of hearings focused on more ideas to amend the program by placing more limitations on new and existing projects and lowering the compensation rate. Net energy billing is a utility program designed to encourage customers to develop or participate in small-scale renewable energy projects like solar panels by offering credits to offset their electricity bills. The program's supporters see it as a tool to transition the state to clean energy that has been a scapegoat for rising energy costs. But critics argue that it's already achieved the desired environmental goals and is now just a flawed system driving up bills. There are two programs within net energy billing. First is the kilowatt hour program, which is open to all customers and provides kilowatt hour credits on participating customers' bills if they install renewable energy generators such as solar panels or join a community solar project, where customers receive a portion of a solar farm's credits. The credits expire after 12 months. The tariff rate program for nonresidential customers provides dollar credits for those who use their own projects or share in someone else's. The Public Utilities Commission sets an annual rate for the credits, which also expire after 12 months, depending on the customer's size and utility provider. With LD 1317, Sen. Rick Bennett (R-Oxford) wants to adjust the tariff rate over the next few years to eventually reach 12 cents per kilowatt-hour in 2028. Many believe Maine's net energy billing needs reform, but diverge on whether to tweak or toss Solar companies, including ReVision Energy, said that while they appreciated the attempt at a compromise, the 12 cent rate would not be sufficient. In response to Bennett saying that he landed on that amount so solar developers could still make a profit, albeit not as fast, industry representatives said that it isn't workable for projects designed with a higher compensation rate in mind. Though the rate adjustment would apply retroactively, Bennett said he tried to strike a balance with his bill to reduce costs for ratepayers without changing other rules for people who have already entered into contracts. Rep. Steven Foster (R-Dexter) proposed going further to limit the growth of net energy billing costs by reducing qualifying project size and adding termination dates with LD 1321. The bill would not only reduce the capacity of projects to 60 kilowatts from 1 megawatts, but it would also limit compensation, increase transmission costs for net energy bill participants and restrict how long someone may participate in the program to either 20 years or until Dec. 31, 2045 — whichever is sooner. Individuals who work in community solar opposed the bill, fearing it would threaten the viability of an industry they have seen bring down costs for ratepayers and create jobs for Mainers. They argued that the proposed sunset and size limits could have a chilling effect on investments in these projects that have contributed to local economies and helped reduce greenhouse gas emissions. 'Broad retroactive modifications to the core mechanisms in determining compensation under the program as these bills propose and others will have a dramatic effect on 16,000 projects in the state, more than 114,000 customers,' said Caroline Colan, legislative liaison for the Governor's Energy Office, testifying against the bills. The Maine State Chamber of Commerce supports Foster's proposal because it addresses 'concerns in a way that balances cost predictability with program flexibility,' said Government Relations Specialist Ashley Luszczki. However, she suggested a successor program that would still encourage solar development projects between 60 kilowatts and 1 megawatt. The Maine Wild Blueberry Commission was similarly supportive of LD 1321, seeing it as a means to reduce skyrocketing energy costs that they said have hit the profits of farms and other Maine businesses in recent years. However, because half of all electricity used in New England is generated using natural gas, that market is the primary driver of energy prices, according to the Governor's Energy Office. The Public Utilities Commission and the Office of Public Advocate testified neither for nor against the proposals heard Thursday. Like the two bills heard Thursday, the other proposals related to net energy billing were introduced by Republicans, who have largely opposed the program since the tenure of former Republican Gov. Paul LePage, who vetoed several legislative efforts to incentivize the proliferation of cleaner energy. Net energy billing, or Maine's version of net metering, was expanded in 2019 under Gov. Janet Mills so that customers can use renewable generators located outside of their property but within the same utility service territory, such as a community solar project. Legislation passed two years later added a goal of 750 megawatts of distributed generation through net energy billing.
Yahoo
28-02-2025
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Republicans push to end Maine solar subsidies but key lawmaker says it's unlikely
Feb. 28—Republicans in the Legislature on Thursday urged the repeal of solar and other clean energy subsidies they say are driving up the cost of electricity for Mainers while supporters of the so-called net energy billing program say it cost effectively advances zero-emissions energy. "A job-killing solar tax. That is what many companies across our state are calling Maine's solar development subsidy program, otherwise known as net energy billing," Sen. Stacey Guerin, R-Penobscot, a sponsor of one of four bills to end the program, told the Legislature's Energy, Utilities and Technology Committee. Her constituents and other residents and businesses in Maine "are already having a hard time keeping the lights on," she said. "They cannot afford the increases to their electric bills caused by this solar tax." However, the committee's top Republican said it's unlikely majority Democrats will agree to repeal the net energy billing program and may instead agree to compromise legislation. Rebecca Schultz, senior advocate for climate and clean energy at the Natural Resources Council of Maine, said the Republican legislation would end rooftop solar, barring the technology to individuals and households. The "biggest culprits behind rising electricity bills are fossil fuels and the climate change impacts they are causing — not solar energy," she told lawmakers. Significant rate increases since 2021 have been the result of volatile natural gas prices, Schultz said. Costs to recover from storms also is a significant factor driving up CMP bills, amounting to $220 million for storms in 2022 and 2023, adding $10.29 to monthly bills. The cost of net energy billing does not account for benefits such as a pullback in demand for fossil fuel supply, less strain on utilities' transmission and distribution systems and reduced pollution, Schultz said. The debate in Augusta over solar subsidies and net energy billing is not new. Net energy billing is intended to encourage renewable power generation, providing generators with credit for renewable power they produce and send to the electric grid. Before 2019, eligibility was restricted to small generators, reflecting opposition from then-Gov. Paul LePage and many Republican lawmakers. The rules changed in 2019, following the election of Gov. Janet Mills and fellow Democrats in the Legislature. One provision directed utilities to buy power at fixed rates from larger solar projects with up to 5 megawatts of capacity. In 2023, state law limited project size again, changed the formula for subsidies and reduced the eligibility for participating commercial and industrial projects. The most recent uproar — the hours-long legislative hearing drew an overflow crowd drawing scores of speakers on both sides of the issue — was at least partly due to skyrocketing electricity bills for some manufacturers and other businesses. The Public Utilities Commission is again looking into how much of a power bill should be used to incentivize renewable energy projects. Manufacturers, policymakers, utilities and others agree that Maine must add more solar and wind energy to reach targets for reduced greenhouse gas emissions. Disagreements focus on how to apportion the cost. Jason Woollard, an Aroostook County potato grower who farms 15,000 acres of crops in a family business dating to 1886, told lawmakers his business added a potato processing plant in the last few years. Net energy billing policies "are killing our business," he said, with a $690,000-a- year bill for electricity as part of a public policy charge. "Our competitors don't have to pay that," he said. Rep. Gerry Runte, D-York, said net energy billing represents a little more than 6% of monthly electricity bills. In addition, he said, solar projects have limited cost increases in larger components of electricity costs, such as supply that accounts for the kilowatt-hour rate and the amount of electricity a customer uses. "I'm curious why we would prioritize the smallest component that actually has an impact on reducing the big components as opposed to looking at the big components," Runte said. The Governor's Energy Office opposes repeal legislation, telling lawmakers that net energy billing has stimulated solar power development, increased renewable energy in Maine and has contributed to the state's emissions reduction goals. Caroline Colan, legislative liaison for the Governor's Energy Office, said rate design is complicated and has resulted in sharp increases for some large commercial customers and lower monthly bill reductions for others. The programs have spurred the launch of Maine's solar industry and "revitalized other important clean energy sources, including small hydroelectric dams" that also participate in net energy billing, she said. Sen. Matthew Harrington of York, the committee's ranking Senate Republican, said in an interview Monday it's unlikely minority Republicans will have the votes to repeal net energy billing. "Ultimately, I'm personally looking at all of these as some sort of compromise with Democrats about net energy billing," he said. "I'd probably support all-out repeal, but I'm not realistic in this climate. I'm not very optimistic that any of the bills will get across the finish line." Hydropower and nuclear energy are more reliable than wind and solar power that depend on the atmosphere and sunlight, Harrington said. "These intermittent (sources) like solar and wind have a place in the renewable portfolio," he said. "I don't think we should be hitching our cart to those sources of energy." Tony Buxton, a lawyer who represents large industrial users of electricity, told lawmakers that businesses do not expect the Legislature to repeal net energy billing. He and the Office of the Public Advocate; Competitive Energy Services, a Portland consulting firm; and several hydro, wind and other generators, asked the Public Utilities Commission in January to approve a settlement that would reallocate costs across various customer classes. The settlement "could do much more to mitigate the injustices and inefficiencies of net energy billing than you are likely to be able to do in this legislative session," he said. Copy the Story Link
