MAINE PUBLIC UTILITIES COMMISSION

 

 

REPORT and RECOMMENDATIONS on the PROMOTION of

RENEWABLE RESOURCES

 

 

 

 

 

 

 

 

 

 

Presented to the

Utilities and Energy Committee

December 31, 2003

TABLE OF CONTENTS

 

EXECUTIVE SUMMARY ........................................................................................................... 5

 

I.      INTRODUCTION ............................................................................................................... 12

 

II.    OVERVIEW ......................................................................................................................... 14

 

       A.     Promotion of Resources Prior to Electric Restructuring .............................. 14

 

       B.     Promotion of Resources Under the Restructuring Act ................................. 14

 

               1.     Current Portfolio Requirement ..................................................................... 15

 

               2.     Voluntary Research and Development Fund ........................................... 16

 

       C.     Policy Goals and Considerations ....................................................................... 17

 

               1.     Policy Goals and Objectives ......................................................................... 17

 

               2.     Implementation Considerations.................................................................... 19

 

III.    RESOURCE SUPPORT MECHANISMS...................................................................... 21

 

        A.     Renewable Portfolio Standard ............................................................................ 21

 

        B.     System Benefit Charge.......................................................................................... 23

 

        C.     Standard Offer Supply........................................................................................... 25

 

        D.     Net Billing.................................................................................................................. 26

 

        E.     Small Generator Aggregation............................................................................... 28

 

        F.     Customer Rebates................................................................................................... 29

 

        G.     Green Product Demand......................................................................................... 30

 

IV.    FUELS AND TECHNOLOGIES..................................................................................... 31

 

        A.     Biomass..................................................................................................................... 32

 

        B.     Municipal Solid Waste............................................................................................ 36

 

        C.     Efficient Cogeneration........................................................................................... 38

 

        D.     Grid-Scale Hydroelectric (above 5 MW) ............................................................ 40

 

        E.     Small-scale  Hydroelectric (below 5MW) .......................................................... 43

 

        F.     Grid-Scale Wind........................................................................................................ 45

 

        G.     On-Site Wind............................................................................................................. 46

 

        H.     Grid-Scale Solar....................................................................................................... 49

 

        I.       On-site Solar............................................................................................................. 49

 

        J.      Peat............................................................................................................................. 51

 

        K.     Landfill Methane Gas.............................................................................................. 52

 

        L.     Geothermal................................................................................................................ 53

 

        M.     Tidal or Wave............................................................................................................ 54

 

        N.     Fuel Cells................................................................................................................... 55

 

V.     OTHER STATE MECHANISMS..................................................................................... 57

 

        A.     Massachusetts......................................................................................................... 57

 

                1.     Massachusetts RPS........................................................................................ 57

 

                2.     Massachusetts SBC........................................................................................ 58

 

        B.     Connecticut.............................................................................................................. 59

 

                1.     Connecticut RPS.............................................................................................. 59

 

                2.     Connecticut SBC............................................................................................. 60

 

VI.     RECOMMENDATIONS................................................................................................... 61

 

        A.     Maine’s Current Portfolio Requirement............................................................. 61

 

        B.     Policy Goals and Objectives ................................................................................ 61

 

        C.     Resource Support Mechanisms.......................................................................... 62

 

                1.     Grid-Scale Resources..................................................................................... 62

 

                2.     On-Site Applications........................................................................................ 72

 

                3.     Emerging Technologies................................................................................. 76

 

        D.     Legislation ................................................................................................................ 76

 

 

 

Table of Appendices

 

Entities that Provided Comments and Input to Report ................................................... A

 

Maine Generating Facilities .................................................................................................... B

 

Resources Serving Maine’s Customers in 2002 ............................................................... C

 

Economic Impact of Some Eligible Resources ................................................................. D

 

States with Resource Portfolio Standards ......................................................................... E

 

Constitutional Issues Associated with In-State Location Requirements ................... F

 

System Benefit Charge-Funding for Renewables in Other States .............................. G