Pursuant to legislation enacted in 2023, the Governor’s Energy Office (GEO) selected a consultant to conduct a study to determine if a Distribution System Operator could be established in Maine to achieve cost savings for customers, improved system reliability, and accelerated achievement of the state’s climate goals.
What is a Distribution System Operator?
As defined by the legislation, a Distribution System Operator (DSO) is an entity designed to oversee integrated system planning and operate all electric grids in the state, administer an open and transparent market for distributed energy resources, and facilitate the achievement of the greenhouse gas reduction obligations and climate policies. No jurisdiction in the United States has established a DSO entity, although such entities exist in nascent form in other jurisdictions, including Europe.
As defined by the legislation, the DSO's purpose would be to:
- Oversee integrated system planning for all electric grids in the State, including coordinating energy planning efforts across state agencies;
- Operate all electric grids in the State to ensure optimum operations, efficiency, equity, affordability, reliability and customer service;
- Administer an open and transparent market for distributed energy resources; and
- Facilitate the achievement of the greenhouse gas reduction obligations and climate policies.
Study Outcome
GEO retained Strategen Consultants to prepare an initial DSO Feasibility Study as described in Section 2 of the Resolve. The legislation directed GEO to (1) review and evaluate the Feasibility Study, and (2) determine whether a formal design proposal for a DSO should be pursued. GEO shared the initial DSO Feasibility Study and its determination not to pursue the formal creation of a DSO design proposal as described in Section 3 of the Resolve with the public along with a request for public feedback.
The DSO Feasibility Study was submitted, along with GEO’s determination, to the Joint Standing Committee on Energy, Utilities, and Technology on January 17, 2024, and is available online here. While GEO’s determination was to not pursue the formal creation of a DSO design proposal as described in the legislation, GEO intends to consider the information and findings contained in the Feasibility Study to inform future prioritized areas of analysis to support achievement of the broader objectives of the state related to grid planning, infrastructure, and management.
Public Engagement Activities
GEO hosted a webinar on the DSO study on June 20, 2024. This webinar provided an overview of the assessment approach and anticipated timeline and served as an opportunity for stakeholder input. Meeting slides are available to view here.
On November 18, 2024, GEO released a draft report of part I of the DSO study for public comment. Comments on the draft report were accepted through December 5, 2024. Public comments on the draft report are available to view here.
On November 26, GEO hosted a public webinar with Strategen to present the study results and GEO’s determination. Meeting slides and a summary of the meeting are available here.