MPUC Action on Three Cases at Today’s Deliberations
January 25, 2010
Public Utilities Commission
News Release
For Immediate Release
Please Scroll Down for Information on the Three Decisions:
I. MPUC ORDERS ELECTRIC UTILITIES TO ESTABLISH "BEST RATE OPTION" FOR COMMERCIAL ELECTRICITY CUSTOMERS
II. MPUC APPROVES RULES TO IMPLEMENT LEGISLATURE'S COMMUNITY RENEWABLE ENERGY PILOT PROGRAM
III. MPUC REQUESTS PUBLIC COMMENT IN CASCO BAY FERRY CASE
I. MPUC ORDERS ELECTRIC UTILITIES TO ESTABLISH "BEST RATE OPTION" FOR COMMERCIAL ELECTRICITY CUSTOMERS
Augusta, Maine—Today the Maine Public Utilities Commission unanimously approved the use of a “best rate option” for electric utilities in order to ensure that the bills for the transmission and distribution of electricity for commercial electricity customers do not increase as a result of the reduction in their electricity use through conservation measures.
“Charging commercial customers more for good efforts at energy conservation doesn’t make sense and is inconsistent with Maine’s energy policy,” stated Commission Chair Sharon Reishus. “The Commission ordered the use of the best rate option because we want business customers to see their energy bills go down as an incentive to continue conserving energy at their facilities.”
Further, the Commission directed the three electric utilities, Bangor Hydro-Electric (BHE) which already uses some form of this option, Central Maine Power (CMP), and Maine Public Service (MPS) to participate in the development of customer eligibility requirements to settle several questions: whether or not customers must have installed energy efficiency measures to qualify for the best rate option; and, whether the new best rate option will be applied retroactively and if so, to what date.
The “best rate option” as ordered by the Commission will give the utilities’ commercial customers the option of staying in their original energy rate class –despite reductions in energy use which would otherwise precipitate their moving to a smaller rate class— and thereby get the “best” (lower) rate.
Background: There are three rate classes for commercial electricity customers—small, medium and large—based on the size of the customer and the voltage at which they connect in to the electricity network. Through Commission rate design process, electricity rates are set for different classes. The cost to the regulated utility of serving commercial customers varies and there are structural differences in design of the rates by class. The Commission’s November investigation and their order today address the situation in which a commercial customer on the smaller end of the “medium” class reduces its energy use through conservation measures such that it then falls into the “small” class, it is possible for it to get charged more for its energy use.
For more information, visit the virtual case file on the Commission’s website—www.maine.gov/mpuc – and look for the documents in the case under Docket Number 2009-397.
II. MPUC APPROVES RULES TO IMPLEMENT LEGISLATURE'S COMMUNITY RENEWABLE ENERGY PILOT PROGRAM
Augusta, Maine—Today the Maine Public Utilities Commission voted unanimously to adopt rules to implement recently enacted legislation establishing a community-based renewable energy pilot program.
”This pilot program provides a unique opportunity for local renewable energy projects such as wind, solar and small-scale hydro,” noted Commission Chair Sharon Reishus. “The rule helps clarify several important aspects of the new law in terms of program eligibility and incentives.”
This program will allow for community-based renewable energy projects to be locally developed around Maine. The projects must be locally owned electricity generating facilities (50% or more of the facility must be owned by a Maine-based entity) and must not exceed 10 megawatts in size.
The program provides incentives (on a pilot program basis) for the development of these projects. Once qualified as a community-based renewable energy project, a facility has the option of using one of two incentive mechanisms: a long-term contract with a transmission and distribution (T&D) utility for the power output of the facility; or, a renewable energy credit multiplier which would enhance the value of the renewable resource. The Commission is also authorized to incorporate energy from community-based renewable energy projects into standard offer power supply.
Background: During the 2009 session, the Legislature enacted An Act to Establish the Community-based Renewable Energy Pilot Program. This law established a community-based renewable energy pilot program, to be administered by the Commission. The goal of the program is to encourage the sustainable development of community-based renewable energy. The Commission opened an Inquiry in July 2009 in order to obtain information, viewpoints and recommendations from interested parties. In November 2009, the Commission issued a Notice of Rulemaking and proposed the rule provisions deliberated today. The Commission provided interested persons with the opportunity to provide written and oral comments on the proposed rule. For more information, see Docket Number 2009-363.
III. MPUC REQUESTS PUBLIC COMMENT IN CASCO BAY FERRY CASE
Augusta, Maine—Today the Maine Public Utilities Commission unanimously decided to defer consideration of a recommendation by the Commission’s staff that would have declined opening a formal investigation into a rate increase by Casco Bay that took effect last summer. The Commission found that while the staff’s investigation laid to rest several of the issues raised by the island residents, more information was needed before making a final decision in the case. The Commission will hold a public proceeding during which Casco Bay as well as members of the public will have an opportunity to comment on certain issues requiring additional consideration.
Commission Chair Sharon Reishus noted: “We understand that this case involves issues of intense interest to many people. Although the recommended decision was the result of considerable effort by the staff, we would like to afford the public with an opportunity to address some remaining issues before we make any final decision.”
Background: The Petition from island residents was filed in April 2009 raised several issues, including: whether Casco Bay followed appropriate procedures in notifying island inhabitants of the freight and rate increases; whether the operating costs included in the budget were too high; whether revenues received by Casco Bay were sufficiently accounted for and tracked; and whether Casco Bay appropriately assigned costs between scheduled and non-scheduled services.
The Commission opened a summary investigation in May 2009; Casco Bay was ordered to file responses to the Petition allegations, and a technical conference was convened in September. Staff analysis concluded that, while no customer wants to see an increase in rates, Casco Bay’s revenues, by statute, must be adequate to meet its ongoing obligations and to allow it to provide ongoing service to its customers. The staff analysis found that the rate increase put into effect by Casco Bay was just and reasonable. For more information, go to the Commission website (www.maine.gov/mpuc ), visit the virtual case file, and find documents in Docket Number 2009-119.
Contact: Evelyn deFrees, 207-287-6141 evelyn.defrees@maine.gov
