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2010 Legislative Session Review
April 28, 2010
During this legislative session, the Maine Public Utilities Commission (Commission) participated in the Utilities and Energy Committee (Committee) discussions for numerous bills on energy and utility issues. The Commission testified “neither for nor against” and had an active role in providing technical information to the Committee during the work session process. The bills highlighted below are those in which the Commission was most involved. This information is a summary of the primary impact of the bill on the Commission’s work and authority. For a full understanding of the new laws, readers should review the Public Laws (PLs) and Resolve cited for each separate issue.
- Smart Grid (LD 1535/PL 539): Bill sought to establish a state policy to promote the development and implementation of smart grid infrastructure--the use of advanced energy and information technology in the electrical transmission system--to improve system reliability and overall efficiency of the electric generation and delivery system. In effect upon signing (March 23, 2010).
- Final Bill--Commission Role:
- The Commission is directed, upon petition, to open an adjudicatory proceeding to determine whether it is in the public interest of state to have one or more smart grid coordinators; these are entities authorized by the Commission to manage access to smart grid functions, technology and applications within the transmission and distribution utilities’ (T&Ds) service territories.
- The Commission may adopt (by rule or adjudicatory proceeding) standards regarding the smart grid coordinators (including but not limited: eligibility, duties, relationship between smart grid coordinator and a T&D utility, access by second and third parties to information held by smart grid coordinators, data collection and reporting).
- Commission is authorized to adopt routine technical rules regarding the implementation of the state’s smart grid functions.
- Commission must review for approval a transition plan from the T&D utilities for employees displaced by an investment in smart grid infrastructure (if affects 20 or more employees within a three year period).
- Upon petition, the Commission is to permit a T&D utility to adjust its rates to recover incremental costs associated with implementing smart grid functions to the extent that costs are not already reflected in the utility’s rates and the adjustment does not result in unjust or unreasonable rates.
- In its Annual Report (to be released February 2011), the Commission will report on the process of achieving the purposes of the law and the results on any adjudicatory proceeding.
- Enhancing Energy Efficiency (LD 1647/PL 518): Bill required the Commission to direct utilities to enter into long-term contracts for demand response and efficiency in order to meet efficiency targets in the approved Efficiency Maine Trust Triennial Plan (scheduled for Commission review spring 2010) among other provisions. In effect upon signing (March 17, 2010).
- Final Bill--Commission Role:
- Commission is authorized to direct utilities to enter into long-term contracts for energy efficiency capacity resources if it determines (after July 1, 2011) that the assessments on T&D utilities for energy efficiency will not provide sufficient funds to meet the energy efficiency program budget allocations in the Triennial Plan of the Efficiency Maine Trust.
- Contracts with Efficiency Maine Trust are allowed to provide a 20% up-front payment at the start of the contract; other payments are required only after contracted amounts of capacity and energy have been attained and verified.
- The Commission must either conduct a competitive solicitation for energy efficiency capacity resources or contract with Efficiency Maine Trust to deliver those resources through competitive bidding.
- The Commission may not increase assessments on T&D utilities for energy efficiency and demand response resources until the Legislature approves the Efficiency Maine Trust budget.
- The Commission is to report by 1/15/12 to the Utilities and Energy Committee on long-term contracts for capacity resources.
- Installation of Broadband Infrastructure (LD 1778/PL 612): Bill established in statute a “dark fiber provider” as a new utility. The federally-supported dark fiber entity would provide new “unlit” telecommunications fiber-optic cable to all carriers and end users in order to provide high capacity transport of data and telecommunications around the state to the points of connection to the world wide web system (“middle-mile” transport).
- Final Bill--Commission Role: Maine Fiber—a dark fiber provider now a utility under statute—has filed a request for a CPCN as well as for waivers from various statutory requirements at the Commission. The Commission is to issue its order approving or denying the petition within ninety days within receipt of the application.
- Energy Infrastructure Development Corridors (LD 1786/PL 655): Bill was based on recommendations of the Energy Infrastructure Commission which met during the summer and fall of 2009. Establishes a new panel to review proposed state-owned “statutory corridors” for energy transmission lines (for electricity and fossil fuels). Transmission line developers are encouraged to build on designated “statutory” corridors: the interstate highway system and a corridor from Searsport to Limestone. The Commission reviews the energy infrastructure proposals for “petitioned corridors.” Revenue from leases of land for construction of transmission lines will flow into the Efficiency Maine Trust to promote energy efficiency projects and renewable energy resource development and to DOT for transportation initiatives. In effect upon signing (April 15, 2010).
- Final Bill--Commission Role:
- Under current statute, the Commission evaluates and renders decisions on petitions for development of energy infrastructure within a “petitioned corridor” through established adjudicatory process.
- The bill establishes criteria for approval of an energy infrastructure proposals—to be used by Commission for “petitioned corridors” and for the Review Panel for “statutory corridors:” The project must be in the long-term interest of the state (includes a list of criteria for evaluation), materially enhance or not harm transmission opportunities for energy generation in the state, and be reasonably likely to reduce rates or other relevant energy prices or costs.
- If the Commission is unable to determine the effect of a transmission line on electric rates, the Commission may determine an amount of money to be paid annually to reduce the rates of Maine ratepayers by the line owner or operator for the life of the line.
- Commission also evaluates and decides on CPCNs for high-impact transmission lines (using same criteria as above for petitioned and statutory corridors).
- The Commission will contribute to a Report to the U&E Committee and other state agencies with permitting authority over energy infrastructure due February 1, 2011 regarding co-location of various kinds of facilities, transmission lines and pipelines.
- Recommendations of Ocean Energy Task Force (LD 1810/PL 615): Bill was based on recommendations from the Governor’s Ocean Energy Task Force to facilitate the development of off-shore wind or tidal projects. In effect upon signing (April 7, 2010).
- Final Bill--Commission Role:
- Off-shore wind or tidal energy developers come to Commission for a CPCN; in that process, the Commission must consider renewable energy generation goals as well as other factors already in statute.
- The Commission is directed to engage—by September 1, 2010-- in a competitive request for proposal process for long-term contracts from offshore wind energy or tidal demonstration projects. Commission may direct T&Ds to enter into a long-term contract of up to 20 years. Criteria for suppliers are specified in statute.
- Commission may not approve long-term contracts that would result in an increase in electric rates in any customer class greater than the conservation assessment amount (amount per kilowatt hour assessed by the Commission each year on utilities to support energy efficiency programs).
- The Commission is directed to develop and market an ocean wind green power offer (to mitigate impacts on electric rates of a long-term contract).
- Recommendations of OPEGA Study on PSAPs (LD 1813/PL 617 & Resolve 196): Bill implements the recommendations in the report on effectiveness of emergency communications systems in Kennebec County submitted by the Office of Program Evaluation and Government Accountability (OPEGA). In effect upon signing (April 7, 2010).
- Final Bill--Commission Role:
- Rate-making for the Department of Public Safety (DPS) public safety answering point (PSAP) will move from the Commission to the DPS Policy Board.
- The Commission’s Emergency-911 fund will pay for two Central Maine Regional Communications Center emergency communications supervisors to address identified management problems at that PSAP.
- The Commission is directed to use the Emergency 911 fund—through a competitive Request for Proposal (RFP) contract process--to implement quality assurance at the 26 PSAPs in order to help the PSAPs improve their existing standards and protocols. The Commission must report back on the results of the audits as part of its Annual Report.
- The Emergency 911 surcharge on will be adjusted as of July 1, 2010 from the current 52 cents per line to 45 cents per line.
- The Commission, in consultation with the PSAPs, is to develop a plan and timeline for achieving the reduction to 15-17 PSAPs proposed by the Kimball Report and submit it to the Committee by November 1, 2010. (At the Committee’s direction in 2009, the Commission contracted with Kimball Associates to do a state-wide study of PSAP operation and consolidation scenarios; the Report was done and presented to the Committee in March 2010.)
- The Commission must conduct another year of review of the E9-1-1 Access Only law and report back to U & E by January 15, 2011.
The Maine Public Utilities Commission regulates electric, telephone, water and gas utilities to ensure that Maine citizens have access to safe and reliable utility service at rates that are just and reasonable for all ratepayers. Commission programs include Maine Enhanced 911 Service, Dig Safe, and Efficiency Maine.
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