 |
RPS Maine
(Last updated July 1st, 2004)
RENEWABLE PORTFOLIO
STANDARDS—STATE SUMMARY
I. POLICY
II. ADMINISTRATION
III. FINANCING
IV. CRITICAL ELEMENTS
V. POLICY/PROGRAM ASSESSMENT
VI. PUBLIC OUTREACH
AND EDUCATION
I. POLICY
Date Enacted
September 28, 1999
Effective Date
November 4, 1999
Time Period
The Public Utilities Commission (PUC) shall review the 30%
portfolio requirement and make a recommendation for any change
to the joint standing committee of the Legislature having
jurisdiction over utilities and energy matters no later than
5 years after the beginning of retail competition. Retail
competition began March 2000.
Extensions to Time Period
Subject to findings of five-year PUC review.
Applicable Laws, Orders, and Regulations
LD 1804 (1997) - An Act to Restructure the State's Electric
Industry
http://www.state.me.us/mpuc/electric%20restructuring/ld1804.pdf
Maine Statutes, Title 35-A: Public Utilities, Part 1: Public
Utilities Commission, Chapter 32: Electric Industry Restructuring,
§3210. Renewable resources
http://janus.state.me.us/legis/statutes/35-A/title35-Asec3210.html
Maine Public Utilities Commission Rules 65.407
Chapter 311- Eligible Resource Portfolio Requirement
http://www.state.me.us/mpuc/rules/Part%203/ch-311.pdf
Description
A renewable portfolio standard requiring that 30% of generation
sold in Maine be generated from eligible renewable resources.
The portfolio requirement was enacted as part of Maine’s restructuring
law. The resources need not be located in Maine, and the PUC's
2000 restructuring report estimates that approximately half
of the portfolio requirement was met by out-of-state generation.
According to DOE Energy Information Administration data, Maine
generated over 40% of its electricity from renewable resources,
primarily hydropower and biomass, from 1990-2000. This means
that Maine's RPS standard, though the highest in the country,
is unlikely to spur the development of new renewables.
Program Name
Renewable Resource Portfolio Requirement
Standard
Each competitive electricity provider, including standard
offer providers, must provide no less than 30% of its total
kilowatt-hour sales to customers in Maine with electric energy
generated from eligible resources.
Eligibility Date
All renewables developed at any time. High efficiency cogeneration constructed before 1997 that meets an efficiency standard.
Generation Limit
A renewable resource is defined as a qualifying small power
production facility under the Federal Energy Regulatory Commission
rules, or a generation facility whose nameplate capacity does
not exceed 100 megawatts and that generates electricity with
one or more of the qualifying technologies or fuels:
Fuels/Technologies
· Fuel
cells
· Tidal
power
· Solar
arrays and installations
· Wind
power installations
· Geothermal
installations
· Hydroelectric
generators
· Biomass
generators
· Generators
fueled by municipal solid waste in conjunction with recycling
· Self-generation
is not eligible.
II. ADMINISTRATION
Administering Entities
Maine Public Utilities Commission
Type of Entity
State
Administrative Contacts
Public Information Coordinator
Maine Public Utilities Commission
242 State Street
18 State House Station
Augusta, Maine 04333-0018
Phone: 207.287.1598
E-mail: maine.puc@state.me.us
Website: http://www.state.me.us/mpuc
III. FINANCING
Funding Level
No funding level is specified
Funding Source
Included in rate base
Cost Cap
No cost cap specified
Charge
The PUC's 2000 restructuring report states that based on price
differentials of suppliers’ standard offer service bids, the
requirement likely increased the cost of generation in the
range of 1% to 10%, or 1 to 5 mils.
IV. CRITICAL ELEMENTS
Trading
Trading of renewable energy generation credits between competitive
electricity providers in order to meet the 30% renewable generation
standard is not allowed under ME restructuring law. Each competitive
electricity provider must meet the standard individually.
Green Pricing
If a competitive electricity provider represents to a customer
that the provider is selling to the customer a portfolio of
supply sources that includes more than 30% eligible resources,
the resources necessary to supply more than 30% of that customer's
load may not be applied to meet the aggregate 30% portfolio
requirement. This ensures that any charge to provide a customer
with more than 30% renewable energy goes to providing additional
renewable generation, rather than making up for a shortfall
in renewable generation under the RPS.
According to the PUC, no viable green product has been offered
to residential customers. One provider offered a green product
at approximately a 1-cent premium. The product met with only
minimal success and was discontinued during 2001. One aggregator
attempted to offer a green product to residential and small
business customers. The aggregator received a significant
level of interest among consumers, but was unable to find
a provider that would sell generation at a price the aggregator
considers acceptable. While interest remains in promoting
renewable energy, it appears that the development of a green
residential product is not imminent for the same reason that
the overall residential market has not yet developed: the
transaction cost of obtaining residential customers is high
and the resulting margin is not as great as that available
from larger customers.
Certification
Renewable Energy Certificates (REC's) are not created under
ME restructuring law.
Out-of-State
Energy used to satisfy the portfolio requirement must be physically
delivered to the ISO-NE control area or the Maritimes control
area. Generation resources need not be located in Maine, and
the PUC's 2000 restructuring report estimates that approximately
half of the portfolio requirement was met by out-of-state
generation. However, energy sold, or otherwise claimed as
applicable to load served in other jurisdictions, shall not
be used to satisfy the portfolio requirement. The PUC is in
the process of incorporating the NEPOOL certificates trading
system which would allow all New England renewable energy
sources to be eligible.
Self-generation
A customer who significantly reduces or eliminates consumption
of electricity due to self-generation, conversion to an alternative
fuel or demand-side management may not be assessed an exit
or reentry fee in any form for the reduction or elimination
of consumption or reestablishment of service with a transmission
and distribution utility.
Flexibility
A competitive electricity provider that does not satisfy the
portfolio requirement during a compliance period, but has
served at least 20% of its retail kilowatt-hour sales to customers
in Maine from eligible generation facilities during that period,
may cure the deficiency over the next compliance period, so
that over the two compliance periods no less than 30% of retail
total kilowatt-hour sales to customers in Maine is served
from eligible generation facilities.
V. POLICY/PROGRAM ASSESSMENT
Reporting Requirement
On or before May 1 of each year, each competitive electricity
provider must submit an annual report to the Public utility
Commission that contains information that documents compliance
with the portfolio requirement over the previous compliance
period. Each annual report must contain a certification by
a corporate officer that the competitive electricity provider
has complied with the portfolio requirement and that all eligible
resources used to satisfy the portfolio requirement in Maine
have not been sold, or otherwise claimed as applicable to
load served in other jurisdictions. The Commission may at
any time conduct an audit of any competitive electricity provider
to verify compliance with the portfolio requirement. Upon
request by the Commission, a competitive electricity provider
must provide any information that the Commission determines
is needed to conduct the audit and verify compliance with
the portfolio requirement.
Assessing Entity
Maine Public Utilities Commission
Report Date
December 31, 2001
Report Name
A new legislative amendment, H-317, has required the Maine
Public Utility Commission to reassess the RPS program and
publish a report by December 31, 2003.
http://janus.state.me.us.legis_LawMakerWeb_externalsiteframe.asp?ID_280009760&LD_1312&Type-1.htm
Annual Report on Electric Restructuring
http://www.state.me.us/mpuc/2002legislation/ERR_Rpt_New.htm
Status
Maine has satisfied its RPS requirement of 30% renewable energy
retail sales. However, it should be noted that existing eligible
resources can be included in this 30% requirement.
According to the Supplier's 2000 Annual reports, in 2000 at
least 38% of generation sold in Maine was generated by eligible
fuels. Of that amount, almost 60% was generated from traditional
renewables (wood biomass and hydro), while the remainder was
generated by trash or by efficient cogeneration facilities
burning oil, coal, or fuels such as tires and sludge.
Cost Information
There is no available cost information from the renewable
energy contracts. However, the new legislative amendment H-317
has requested that the Public Utility Commission uncover cost
information to support achieving future renewable energy goals.
Assessment Contact
Maine Public Utilities Commission
http://www.state.me.us/mpuc
VI. PUBLIC OUTREACH AND EDUCATION
Outreach/Customer Education
Consumer Education Program Materials and Proceedings
http://www.state.me.us/mpuc/Electric%20Supplier/electric_consumer_education.htm
Press Releases
http://www.state.me.us/mpuc/newsreleases2002.htm
|
|
