Clean Energy, Climate, Consumers, and the Future of the Electric Utility: Where Does Maine Go from Here?

A recent highly publicized ballot initiative in Maine focused on the importance of getting the utilities’ role right in the clean energy transition. The ballot initiative asked Maine voters to approve a process to transition the state’s two for-profit electric utilities, Central Maine Power and Versant, into a new consumer-owned utility to be called Pine Tree Power. The referendum proposed to have Pine Tree Power governed by a board of 13 elected members, seven of whom would be elected in statewide public elections, and the remaining six appointed by the elected members. On November 7, 2023, Maine voters overwhelmingly voted not to proceed with Pine Tree Power.

The referendum’s defeat is not an ending, but instead an opportunity for a new beginning. Maine’s utility regulators must ensure that the state’s utility policies are aligned with climate, consumer, and equity priorities—regardless of whether its utilities are publicly or privately owned. By doing so, Maine can motivate its utilities to be full partners in fighting climate change, accelerating the clean energy transition, protecting consumer interests, and promoting environmental justice.

However, it should be noted that utilities in Maine caused consumers to rebel. Legitimate complaints about customer service, reliability, and billing abound. Maine’s utilities have reacted to complaints defensively and have been slow to respond to the urgent demands of climate change and creating a clean energy future.

Second, the utility regulatory structure in Maine must change regardless of the outcome of the referendum. Maine, like most states, continues to rely on a utility monopoly structure that was developed decades ago in very different times. Utility monopolies were created to streamline bringing electric service to all. The impetus for creating monopoly utilities like Central Maine Power was to optimize the growth of electric service by connecting electric generating plants to a single distribution system of wires and poles that reached rural and urban communities alike.

But that was decades ago, and times have changed. Today, the role of electricity in our economy and lives is far different. Reliable electric service is not a luxury but essential to modern life’s functioning and safety. We need electricity to power almost all aspects of our lives, from heating systems to refrigeration and almost everything in between. Moreover, electrification is critical to today’s climate goals. New clean, electric technologies can provide greater comfort at lower costs and lower emissions. But the way Maine regulates its utilities must change to make this a reality. The return on investment for a utility shareholder should not matter more than providing utility customers with the best possible energy options at the lowest price. Under existing utility policies, investor-owned utilities are driven by one mantra: to provide the highest possible return on investment to shareholders, while customers and climate goals take a back seat.  That system imposes conflicting incentives on the utility’s decision making.

There is a better way!

Acadia Center is actively engaged in efforts to advance policies that will reshape the role of Maine’s utilities as proactive players in the clean energy transition. For example, we are calling for regulators to ensure that metrics for utility success and performance are meaningfully tied to the right policy priorities and that utilities are held accountable for their performance. Acadia Center advocates for performance-based metrics and incentives for utilities that tie utility compensation to performance, including lowering bills and increasing customer satisfaction ratings. For any normal business, competitive pressure would force it to reduce costs, but in a monopolistic system, while Maine utilities receive a guaranteed high rate of return, they are not subject to similar competitive pressures.

Acadia Center is further advancing reforms to improve and modernize state utility planning oversight. Utility planning processes should eliminate barriers to clean distributed energy resources and non-wires alternatives, but today, that is not the case. Acadia Center has offered a new, updated framework for utility oversight and energy system planned called RESPECT: Reforming Energy System Planning for Equity and Climate Transformation.  RESPECT recommends a modernized framework for how utilities should make long-term investment decisions to ensure energy systems are aligned with state goals to address climate pollution, further environmental justice, and lower consumer costs.  For example, currently, utilities both plan and make decisions on which energy options they should invest in.  Often these decisions are informed by the financial return for the company. Critically, RESPECT contains approaches to remove these competing financial and planning incentives on the utility by offering a new approach for independent system planning.  Acadia Center advocates for more comprehensive utility planning efforts, such as the Maine PUC’s Integrated Grid Planning (which Acadia Center was instrumental in getting written into law).  These efforts will require active participation and clear buy-in by the utilities and the Maine Public Utility Commission.

These are just several examples of the many important policy changes needed. But despite the complexity of utility reform, Maine does not have to look far for notable models of better practices. In Vermont, for example, Green Mountain Power (GMP) offers multiple programs that treat customers as partners and looks for ways to provide them relief, not just to collect their bills. For example, GMP provides direct incentives to its customers that are not mere tokens: customers can receive up to $10,500 for the installation of home batteries, free at-home EV chargers (and a lower EV charging rate) as well as generous rebates and incentives for heat pumps, induction stoves, electric yard equipment, and a host of other electric devices. The kinds of innovative programs that utilities like Green Mountain Power offer could provide a roadmap for Maine’s utilities – and greatly benefit Maine families by offering a full array of new options to control costs.

Now is a critical time for ensuring that Maine’s electrical system works for the benefit of consumers and communities in Maine, and not distant shareholders whose focus is return on investment. Look for Acadia Center to dive into these issues in more detail and offer specific recommendations in the coming months.

Myth Busting: Electric Vehicle Charging and Reliability

EVs don’t work in the cold weather, and the car heater kills the battery!

While older EVs do experience reduced efficiency in their battery life below 30° Fahrenheit, traditional gas-powered vehicles experience the same issue. In newer EV models this issue is reduced and the extreme cold usually affects the battery by about 15-30%. Newer EVs have also found a solution to the problem of heater use reducing the battery level, equipping their models with heat pumps that heat the car and do not reduce the battery capacity by any significant percentage when in use.

EVs are expensive; it’s cheaper to stick with gas vehicles.

In very recent years, both new and used car prices have dramatically escalated. But the price for many EV models has come down, and there are financial incentives available for many makes of cars from federal and state programs that make EVs competitive with the price of new gasoline and hybrid vehicles. You can check the IRS website to see financial incentives that may be applicable to your situation. The incentives can be substantial, depending on where the car was built, and the battery materials were mined. Lower price EVs include the Kia Niro, Chevrolet Bolt, and Tesla Model 3 (base model).

The range thing freaks me out; I could get stranded!

Most late-model EVs have an achievable range of about 200-250 miles, and several have more than 300 miles, far above the range of the average daily driver. Charging stations exist throughout the region for longer trips, with new programs promoting additional charging station locations. Plus, it’s important to remember that if you have a home charger, you can fully charge your EV and need fewer breaks at charging stations on the road.

Charging an EV is complicated; how do people figure it out?

Charging an EV is similar in many ways to charging a mobile phone. You can charge your EV in at least three ways. Here are your options:

1. Plug it into a wall socket! A typical home socket is 110V, known as a Level 1 charger. This method of charging can be slow, taking about 8-10 hours to charge the battery fully. Few people prefer this method because it takes so long.
2. Install a Level 2 charger at home that can “fill the tank” in about 2-4 hours. This charger uses 240 volts, typically charging four times faster than Level 1. Many states or consumer groups have incentives to install home chargers, and they’re as simple to use as plugging in your car and removing the plug once it’s full. Here’s a picture of a home charger in my garage. I have two lines for two EVs.

3. Charge on the road with a “Supercharger” in about 20-30 minutes. See below for more on the Supercharger.

Wait, I can charge at home, but what about out on the road? I’m going to get stranded again!

There are chargers throughout the U.S. and Canada. In Maine, where I live, there are approximately 216 high-speed chargers available on the roads, with 708 slower community chargers. Of course, there are fewer chargers in rural areas, and some planning is required. It is a little more complicated than charging at home, but not much, and there are phone apps that can help you navigate to the nearest charger. On the road, many chargers are so-called “Superchargers” or Level 3 chargers that can charge your car fully in about 20-30 minutes. A new fleet of even faster Level 4 chargers is being installed in the United States. You can easily download many apps on your phone, such as Plugshare and ABRP, which show you where the chargers are located, whether they are working or occupied. Once you find one on the map, you touch the screen on the pin, and it gives you directions to the Supercharger! These apps also allow you to plan your journey so that you are sure chargers will be available along the way.

For questions, please email Senior Policy Advocate and Maine Program Director Pete LaFond at plafond@acadiacenter.org, and he will endeavor to answer your questions.

Boston no longer pursuing inclusion in program to ban fossil fuels in new construction

The city of Boston will no longer be pursuing inclusion in a program that would allow it to ban fossil fuels from new construction.

The program was open to 10 Massachusetts municipalities, and nine of those spots have already been taken. Mayor Michelle Wu told The Boston Globe last week that she had received “clear indications that Boston would not be chosen for the one available spot,” and that it “breaks [her] heart.”

Boston was unlikely to be accepted because it is “electrically similar” to a few other communities that have already been selected, such as Cambridge, Brookline, and Arlington, a spokesperson for the state Department of Energy Resources told the Globe. This means that their infrastructures are of a similar age and face similar demands. The pilot program was designed to collect data from a diverse group of municipalities.

Kyle Murray, Massachusetts program director at the clean energy advocacy group Acadia Center, told the Globe that Boston’s new building code already does a lot to prevent fossil fuel usage in new buildings.

“[The code is] strong and will really help drive down emissions,” he told the paper. “So I still think Boston is going to do some amazing things, but still — I’m a little disappointed.”

To read the full article from Boston.com, click here.

Boston’s plan to ban fossil fuels in new buildings goes up in smoke

More than three years after introducing her Green New Deal plan for Boston as a mayoral candidate, Mayor Michelle Wu said in an interview last week that the city will not be participating in a state program that will allow 10 communities to ban developers from including fossil fuels in new buildings. The pilot program is the only way for Massachusetts communities to take this step without violating state regulations.

Wu’s decision not to apply for the program came as a surprise to environmental advocates and legislators who have been trying to move the state away from heating and cooling new structures with fossil fuels. Constructing buildings that are only powered by electricity is considered among the low-hanging fruit of plans to decarbonize. Buildings account for roughly 70 percent of Boston’s greenhouse gas emissions.

The adoption of Boston’s new building code already goes a long way toward getting fossil fuels out of new buildings, said Kyle Murray, Massachusetts program director at the clean energy advocacy group Acadia Center.

The code is “strong and will really help drive down emissions,” he said. “So I still think Boston is going to do some amazing things, but still — I’m a little disappointed.”

To read the full article from the Boston Globe, click here.

What the Failed Pine Tree Power Proposal in Maine Could Have Accomplished

Maine voters had the chance to make history Tuesday, but instead rejected the contentious Pine Tree Power proposal which, advocates say, had big implications for the rates that Maine electric customers pay and how fast the state transitions to renewable energy sources.

If it had passed, the vote would have replaced the state’s investor-owned electric utilities, Central Maine Power and Versant Power, with a publicly owned alternative named Pine Tree Power, the first of its kind in the US. The move also could have set the stage for other states to follow suit.

The ballot question created a fiery debate, with even environmental nonprofits disagreeing on which option was better.

“The consumer-owned utility model has uncertainty and change attached to it,” said Peter LaFond, senior policy advocate and Maine program director for the nonpartisan Acadia Center.

LaFond, who did not endorse either side, believes the ballot initiative was more of “an indication that change is needed.”

The Pine Tree Power proposal surfaced after strong criticism of Central Maine Power, a corporate-owned utility that consumers say has a history of slow response time to outages and poor billing experiences.

Supporters of the Pine Tree Power initiative said CMP caused roadblocks to renewable power projects. “Things need to be governed differently to move forward into a green energy future that both reduces energy costs and reduces the carbon footprint,” LaFond said.

But the vote isn’t where this issue ends. Residents will still need to remain involved if they want their voice to be heard in the future of Maine’s energy decisions.

“Regardless of the outcome of the vote, things need to change,” LaFond said. “If we’re going to meet consumer, climate and energy goals, we have to move forward with a utility system that’s responsive to those.”

To read the full article from CNET, click here.

Will RIDOT Pay Any Attention to Public Comments About Its Carbon Reduction Strategy?

As transportation produces the most climate change emissions, there is now some federal transportation funding which, in order to obtain, requires the Rhode Island Department of Transportation to file a “carbon reduction strategy” (CRS). So RIDOT drafted a CRS that was open for public comment that had a Nov. 3 deadline for input.

One response was a sign-on letter organized by Acadia Center and a group of “transportation decarbonization” activists that generated 20 signatures from climate, environmental, bike, and transit groups asking for changes in the plan. The letter notes a need to improve its methodology, to better engage stakeholders, to give more priority to implementing the state’s officially adopted transit and bike plans, and, most importantly, to make it more likely to actually meet climate goals. RIDOT is to review the public comments, but it seems they need not make any changes in what they send to the Federal Highway Administration.

To read the full article from ecoRI, click here.

Governor Shapiro Can Champion Climate and Consumer Benefits from RGGI and Benefit Pennsylvania’s Future

For Release: November 2, 2023

Rockport, ME – In the wake of a pivotal Commonwealth Court decision finding Pennsylvania’s involvement in the Regional Greenhouse Gas Initiative (RGGI) unconstitutional, the state’s commitment to combating climate change has been put into question. Governor Josh Shapiro is presented with a unique opportunity to become a climate leader and safeguard the state’s environment, economy, and public health by supporting an appeal of the Court’s decision.

“Numerous studies confirm that participation in RGGI by Pennsylvania will provide large climate benefits, reduce criteria pollutant emissions, improve health outcomes, reduce energy bills for consumers, and create jobs and economic growth in the Commonwealth.” stated Paola Tamayo, Policy Analyst at Acadia Center and co-author of the organization’s RGGI Third Program Review Report. “Participating RGGI states have seen their economies grow faster than states that do not limit climate pollution and proceeds from RGGI have enabled these states to invest more than $6.7 billion to help move their states to a healthier clean energy future,” she added.

“If Pennsylvania fails to participate in RGGI moving forward it represents a significant missed opportunity for generating revenue that could be used for critical investments, including upgrades to housing in environmental justice communities, that the state desperately needs.” said Ben Butterworth, Director of Climate, Energy & Equity Analysis at Acadia Center. “If Pennsylvania had participated in RGGI the last several years, the state would have generated nearly $1 billion per year to make investments in their economy that simultaneously address the climate crisis and improve the quality of life for residents.”

A coalition of environmental organizations in Pennsylvania have emphasized the importance of Governor Shapiro appealing in the next 30 days. Failure to appeal the decision would have significant negative consequences for both the state and the region as a whole.

Implications for Pennsylvania:

• Public Health: RGGI reduces carbon pollution from power plants, mitigating the harmful health impacts of air pollution in Pennsylvania’s communities. Governor Shapiro’s appeal can protect the well-being of residents from the devastating health consequences of poor air quality and save hundreds of Pennsylvanian lives. According to Pennsylvania’s Department of Environmental Protection (DEP), RGGI would prevent 639 premature deaths from respiratory illnesses, reduce hospital visits by 30,000 and deliver over $6 billion in public health benefits.
• Economic Prosperity: By staying in RGGI, Pennsylvania can reap substantial economic benefits, including program payments totaling approximately $1 billion annually, which could be directly invested in projects that benefit Pennsylvanians. This funding would promote job creation, stimulate the state’s economy and benefit both public health and environmental justice communities. Additionally, the public health improvements from reductions in criteria air pollution as a result of RGGI participation would result in 83,000 avoided lost workdays according to analysis by DEP.
• Environmental Stewardship: Remaining a part of RGGI would bolster Pennsylvania’s commitment to environmental sustainability. It enables the state to reduce its carbon emissions, limit climate impacts, and protect the environment for future generations. According to DEP, RGGI could help Pennsylvania avoid between 97 and 225 million tons of carbon pollution by 2030.

Implications for the Region:

• Collective Emission Reductions: Pennsylvania’s involvement would reduce greenhouse gas emissions and improve air quality throughout the region. An exit from the program would undermine the collective effort to combat climate change in the Northeast and Mid-Atlantic region.
• Strengthening the RGGI Coalition: If both Pennsylvania and Virginia had participated in RGGI auctions in 2022, Pennsylvania alone would have represented 44% of total regional power sector emissions covered under the RGGI program. Given the sheer amount of power sector emissions coming from Pennsylvania, the importance of keeping the state in RGGI to bolster the strength of the overall coalition cannot be understated.

Governor Shapiro’s appeal would demonstrate a commitment to protecting Pennsylvania’s climate, public health, and economic future, especially considering that there is no alternative program waiting on his desk. By appealing, he has the opportunity to champion clean energy and job creation for the state. Governor Shapiro can be a beacon for a cleaner, greener future by appealing this decision and solidifying Pennsylvania’s dedication to RGGI.

Media Contacts:

Ben Butterworth, Director: Climate, Energy, and Equity Analysis
bbutterworth@acadiacenter.org, 617-742-0054 x111

Paola Moncada Tamayo, Policy Analyst
ptamayo@acadiacenter.org, 860-246-7121 x204

RGGI’s Third Program Review: Charting a Path Towards Zero?

The Regional Greenhouse Gas Initiative (RGGI), a cap-and-invest program among Northeastern and mid-Atlantic states to reduce CO2 emissions from the power sector, is currently undergoing its third program review. This means the participating states, including Rhode Island and Massachusetts, are collectively examining the successes, impacts, and design of their CO2 budget trading programs, and considering updates to the program design. We see this third program review as a real opportunity to strengthen RGGI in a way that would significantly and equitably drive down power sector emissions and have been following the process closely. We have been told that the process will conclude by the end of the year. 

Speaking of Environmental Justice, in this third program review, RGGI has the opportunity to ensure equity is built into the model rule. Although they have not yet outlined their strategy for including equity, we, along with fellow advocates, have been advocating for RGGI states to incorporate air quality monitoring in their program review. We urge them to prioritize accelerating emission reductions at power plants that pose the most significant respiratory health risks to vulnerable communities. Specifically, we propose a reduction in the MW threshold capacity for power plants covered under RGGI, from 25MW to 15MW. According to the RGGI Report by Acadia Center, 91% of these smaller generating units are situated within a 3-mile radius of an EPA Environmental Justice Socioeconomic Indicators (EJSI) community or a community with a high asthma prevalence. Therefore, their inclusion in the program can contribute to addressing the health disparities caused by these power plants’ proximity to EJSI communities.

To read the full blog from Green Energy Consumers Alliance, click here.

Go solar: How social movements influence and help grow emerging industries like green energy

As Margaret Mead allegedly said, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.”

Not the only thing, perhaps, but there’s growing evidence that social movements — groups of dedicated actors that aim to promote shared social or cultural goals — can have an impact on promoting new firms and industries.

IESE Business School’s Desirée Pacheco and Theodore A. Khoury of Portland State University examine the role of social movements in the development of solar energy in the United States. Specifically, they look at how social movements can successfully create an environment in which firms feel encouraged to enter the market, and in which circumstances they have the most clout.

As countries increasingly accept the need to replace fossil fuels with sustainable energy sources, the environmental benefits of solar energy become ever clearer. Despite this, not all economies have rushed to embrace solar in a timely fashion, leaving much of the groundwork to be covered by social movements.

In the U.S., tech-focused social movements, such as Acadia Center in Maine or the Energy Trust of Oregon, have lobbied for its adoption in several ways, including:

• awareness campaigns
• training and educational programs
• supporting good ideas, fighting misinformation and finding common ground
• pushing for regulatory reform
• managing programs for swapping or upgrading

All these initiatives help a new industry come across as viable and legitimate. They clarify the unknowns in a firm’s offering, push for legal frameworks that make room for them, and target potential customers.

In the case of solar energy in the U.S., state-level laws define many residents’ attitudes toward the industry. Pacheco and Khoury’s research shows that it is precisely where the regional ecology is least supportive of solar offerings that social movements can make a larger difference.

To read the full article in Forbes India, click here.

RIDOT’s carbon reduction strategy draws backlash from advocates for focus on highways

On Oct. 3, the Rhode Island Department of Transportation published its Carbon Reduction Strategy and opened the document’s public comment period, which is scheduled to close Friday. The plan, which is required for states to receive funding from the Federal Highway Administration’s Carbon Reduction Program, is due Nov. 15.

Emily Koo ’13, senior policy advocate and Rhode Island program director for Acadia Center, said the state needs a much more aggressive push toward shifting modes of transportation and the reduction of vehicle miles traveled in order to achieve its Act on Climate targets, which call to reduce emissions 80% from 1990 levels by 2040 and to net-zero by 2050.

“There is a glaring disconnect between the scale of emission reduction needed to move the needle and the investments proposed in RIDOT’s Carbon Reduction Strategy,” Koo wrote in an email to The Herald.

The Transit Master Plan, also published in 2020 by multiple state transportation agencies, strives to improve mobility for residents by enhancing the state’s public transit network, including rail and bus routes.

Sweeping expansions and improvements proposed in the plan have not come to fruition — instead, RIPTA faces a potential budget cliff as soon as the 2025 fiscal year.

“In the absence of project-level emissions reductions analysis (or public engagement), we must assume that RIDOT’s process for identifying and prioritizing projects and strategies is based solely on ‘RIDOT’s internal priorities and logistical capacities’ — in other words, the way things have always been done,” Koo wrote.

RIDOT held a stakeholder workshop in Sept. 2023 to identify strategies and priorities while crafting the strategy. Grow Smart R.I. and Acadia Center each had one representative at the workshop.

To read the full article from the Brown Daily Herald, click here.