Maine PUC Has the Tools for Real Utility Reform But Needs Time and Will To Use Them!

Few state agencies have more impact on Mainers’ daily lives than the Public Utilities Commission (Commission). The Commission regulates electric, gas, and water utilities’ rates and services and provides oversight to the state’s utility monopolies, Central Maine Power and Versant Power, who collectively serve more than 795,000 electricity customers over 22,000 square miles from Fort Kent to Kittery. For most of its existence, the Commission was charged with keeping rates low, ensuring reliable supply of electricity, and allowing utilities to earn a profit on their businesses. Recent action authorizes Commissioners to do more.

The 130th Maine Legislature, which wrapped up its two-year session in May 2022, enacted reforms that strengthen the Commission’s regulatory hand when it comes to electric utilities. First LD 1682 – An Act To Require Consideration of Climate Impacts by the Public Utilities Commission and To Incorporate Equity Considerations in Decision Making by State Agencies empowers the agency to make decisions that prioritize greenhouse gas emission reductions as part of its primary mission, in addition to affordability, reliability, and utility profit. Second, LD 1959 – An Act Regarding Utility Accountability and Grid Planning for Maine’s Clean Energy Future, strengthens the agency’s ability to hold utilities accountable for their performance and impacts on ratepayers. LD 1959 also requires the Commission to initiate comprehensive, integrated grid planning with robust stakeholder input, review, and transparency. A third law, LD 2018  An Act to Implement Recommendations Regarding the Incorporation of Equity Considerations in Regulatory Decision Making, opens the door for more inclusive and accessible Commission proceedings for environmental justice and frontline communities. These new laws will hopefully lead Maine to a more reliable, clean, and affordable electricity grid that benefits all Mainers.

Regulatory reforms of this magnitude take time; CMP, however, is wasting no time at all. Before the ink was dry on Governor Janet Mills’ signature on LD 1959, Maine’s largest utility-owned investor announced its intent to file a three-year plan that hikes electricity delivery rates before the Commission can flex its new regulatory muscles around utility reliability and affordability performance metrics, grid planning, and climate and equity considerations. The utility also seeks a 10-10.5 percent return on equity, which determines its expected profitability while passing expenses through to ratepayers. CMP’s preemptive move comes at a time of sky-high electricity rates driven by the Northeast’s dependence on natural gas, volatility in global energy markets, and continuing supply chain issues from the pandemic and war in Ukraine. Governor Mills also wasted no time in criticizing CMP’s move, describing it as “outrageous” and adding “insult to injury” to Maine people, while declaring she will “fight this” by directing her Energy Office to oppose it and urging the Commission to reject it. Acadia Center also condemned the announcement in the Portland Press Herald:

Approving a rate increase before the PUC adopts those new standards for the state’s utilities and starts the grid planning process would be putting the cart before the horse, said Jeff Marks, Maine director and senior policy advocate for the Acadia Center, an organization pushing for policies to protect the environment and transition to clean energy sources. Marks said the new law will require the utilities to meet new standards to ensure they are using customer revenue wisely, and it also calls for a wide-ranging plan to enhance the state’s power grid. Deciding on a rate increase before either measure is in place doesn’t make sense, he said. “These rate hikes show we can’t start too soon,” Marks said. “With this type of rate hike at this point, we need to start the accountability process.” Marks also said that a comprehensive plan to modernize Maine’s electric grid could help keep rates low, and that giving CMP a rate hike to make some changes before the overall plan is even underway would be premature. The new grid plan, along with new accountability measures, “will shine a spotlight” on how well the utilities are providing electric service to Mainers, Marks said, adding that analysis should be done before CMP seeks a rate hike, not after.

Because of the reforms enacted by the Maine Legislature and signed by the Governor, Maine has the opportunity to design a clean, affordable, reliable grid in a cost-effective manner that considers the state’s goals and targets to decarbonize the grid and electrify buildings and transportation and do so in a way that supports equity and minimizes impacts on underserved, overburdened, and vulnerable communities. The Commission will launch the grid planning process later this year with significant stakeholder engagement and outreach. Utilities will have eighteen months to develop and submit plans. Stakeholders again will have the opportunity to weigh in. This integrated grid planning process, along with requirements to consider climate pollution strategies and reductions, could provide hundreds of millions of dollars in ratepayer benefits and savings while appropriately assessing environmental, climate, and equity impacts of electric policies, programs, and projects. This, in turn, will help Maine lead the way in reducing dependence on out-of-state natural gas, fighting climate change, and enabling the grid to make way for cost-effective heat pumps in our living rooms, efficiency improvements in our attics and basements, electric vehicles in our garages and driveways, and the capacity to store excess energy for when we need it most.

Acadia Center is pleased to see that CMP wants to invest in smarter technology, more robust infrastructure, better rate design, and renewable energy interconnection. However, Acadia Center urges restraint on increased utility rates and profits until the Commission, in partnership with utilities and Maine people, evaluates the investments truly needed to benefit Maine people with lower, less volatile long-term rates, cleaner air, a stronger, more reliable grid, and better access to clean energy resources.

Jeff Marks
Maine Director

Oliver Tully
Director, Utility Innovation and Reform

Zero Emissions to Mile Zero

Growing up the son of a classic car enthusiast, I would often hear tales and vagaries of the “Great American Road Trip.” I would picture our own family zig-zagging across the country in one of the cars my father restored—a turquoise Ford Thunderbird, a coral Chevy Nomad, or even my personal favorite, his black and red 1958 Edsel with the revolutionary Teletouch automatic transmission. So, it should come as little surprise that in the ensuing decades I have lived out those dreams—driving up and down the Pacific Coast Highway, exploring family history in Quebec, and meandering through the Great Smoky Mountains. But my latest trip was something I could never have imagined as a young child staring at the Edsel’s unique horse collar grill. Because my latest road trip was…all- electric! 

A few years ago, I had the chance to buy a used 2015 Tesla Model S 70 with approximately 236 miles of range for significantly less than even the pre-pandemic prices of most battery electric vehicles (EVs) on the market today. It was an outlier deal then—a “steal” really—and has only improved with age. And because early Tesla models included unlimited complimentary “Supercharging” at the company’s international, proprietary network of fast Level 3 charging stations, I was inspired to start plotting a new generation of road trips. I started with some proving trips around the region—to friends in New Jersey and Maryland; through Mohawk Trail and to the top of Mount Washington; and to a wedding in rural upstate New York. But as the pandemic took its toll, my wanderlust grew exponentially. I soon started planning a longer challenge that would take me to the end of U.S. Route 1 in Key West, Florida.   

Lots of people talk about having range anxiety. I quickly eliminated any marginal concerns through my early proving trips. But ahead of this journey, I did have what I will call range “curiosity.” I wondered whether the projected battery range would hold up under actual driving conditions, especially as temperatures and speed limits would increase significantly as I navigated further south. Would the weight of passengers and luggage cut noticeably into efficiency? Would there be enough chargers around to facilitate diversions from the main path? Would the charging stops become more onerous as the trip wore on? And despite over $4.30 per gallon gasoline, would I conclude it would have been more practical to drive a gas-powered vehicle for this trip?

To make a long story short, I continue to find both short and long trips far more pleasant in my electric vehicle than any gas powered vehicle I’ve driven, and I would be very happy to never drive a gas-powered vehicle again.

The Journey

My first stop was a reunion at my college roommate’s apartment in New Jersey where I plugged into a Level 2 charger overnight. With a full battery, I drove the nearly 200 miles south that morning to rendezvous with a friend at the Hanover, Maryland, Supercharging station—he was carrying out the time-honored tradition of driving his mother’s vehicle back north from Florida for the summer. We grabbed lunch and coffee and soon were back on our respective missions. He recommended a route south which would take me across the Potomac through eastern Maryland and bypass much of the weekend traffic surrounding the Capital Beltway. Thanks to this impromptu diversion, I stumbled onto an antique shop in Port Royal, Virginia, nearly purchasing the stone sasquatch prominently displayed outside—maybe on the way back!

From Port Royal, I made great time through Virginia and the Carolinas and into Georgia, pulling off to explore here and there and eventually stopping for the night at a hotel with its own bank of Superchargers. 

Well rested and fully charged, I set my sights on South Florida to pick up family flying in for the week. I finally encountered my first problem of the trip—I was unexpectedly ahead of schedule. I thought I’d hit more traffic…I thought charging stops would take more time…I thought I would need an extra day to comfortably arrive on time in Miami. So, I started researching destinations not on my original itinerary—would there be a rocket launch from Cape Canaveral? Concerts? Sports? As it turns out, the NHL’s Tampa Bay Lightning were hosting a playoff game and outdoor viewing party on the plaza right outside their arena. After a quick check of hotels in the area, I found one within walking distance of the arena that also offered complimentary Level 2 charging—ideal for an overnight stay. So, onto Tampa and what turned out to be a fantastic and lively party complete with music, lawn games, food, and perfect weather!  

In the morning, I was back on the road, driving south and then turning east across “Alligator Alley.” About halfway across this long stretch of isolated highway partitioning both the Big Cypress National Reserve and Florida Everglades, I stopped at the Supercharger on the Miccosukee Reservation and watched the sun rise with a couple charging their car to make the reverse trip up to Tampa and eventually back to Michigan. After sidestepping the largest crickets I’ve ever seen, I was back on the road to South Florida where my family would soon land. We spent the night in Miami Beach where the local parking garage had multiple Level 2 chargers to use for a fee.

The next morning, we all piled into the car, cruised slowly south on Ocean Avenue between South Beach on our left and rows of iconic Art Deco buildings on our right, and then continuing onto the Florida Keys.  

We stopped at one of our favorite lunch spots in Islamorada which also included a Level 2 charger—we didn’t necessarily need to charge but adding about 30 miles of range while we ate lunch gave us enough of a buffer to confidently make it all the way to Key West. The next morning, I drove to Key West City Hall to use their level 2 charger, retrieving it later in the day with nearly a full charge. For the rest of the stay, I kept the car plugged into an outdoor outlet—nothing fancy, just a standard 120-volt outlet to maintain a full charge. We drove back to New England mostly with the windows down, soaking up all of the heat we could, and stopping at a nearly entirely different set of charging stations along the way.  

Next up, the other end of Route 1 in Maine! If I found a sasquatch statute in Virginia—what will I find up there? 

Ruminations from the Road 

1. Drivers still need incentives to make the switch to zero-emissions vehicles and manufacturers need to solve supply chain woes in order to bring down the cost and build-times of all lower-polluting vehicles. Federal and state tax credits and/or rebates, when designed equitably, can help more people afford EVs which typically carry a higher up-front cost offset over time by lower fueling and maintenance costs. Acadia Center has repeatedly supported expanding EV incentives to used vehicles, lowering the sales price cap for EV incentives, and expanding eligibility to E-bikes. This package of reforms help ensure incentives are helping people that need assistance making the transition rather than subsidizing new vehicles for wealthier individuals that likely don’t require the credit or rebate. 
2. This trip would likely not have been as easy without access to Tesla’s well-developed proprietary network of fast chargers—this is a complaint I have heard from some of my fellow electric vehicle drivers. I could quickly locate chargers along my route using the built-in navigation system and could always access multiple charging destinations without concern. It will be critical to expand EV charging networks to fully unlock the transformative potential of electric vehicles, including personal, commercial, public transit, and medium– and heavy–duty vehicles. Last year’s federal Infrastructure Investment and Jobs Act (IIJA) included funding to expand the nation’s EV charging network and states are in the process of developing their IIJA plans this summer. My trip demonstrated more hotels could benefit from offering and advertising EV charging amenities on highway billboards to attract wandering travelers looking to recharge body, mind, and car overnight. 
3. I found stopping every few hours to charge quite refreshing. On all of my past gas-powered road trips, there was always self-imposed pressure to fuel up and get back out as quickly as possible. Since my car has older charging technology, my stops would sometimes take about 30 minutes—the perfect amount of time to use the restroom, maybe grab a bite, stretch my legs, check email, and even go for a light jog or walk. At the same time, as batteries and charging technology continue to improve by leaps and bounds, the number of stops and time to “refill” will continue to decrease. In fact, the 2022 version of my vehicle already has nearly double the range and is able to charge at much higher speeds to make the experience more comparable to stopping for gas. All drivers should consider their wellness on any long drive and build in time to take these breaks even if their vehicles don’t require them as much in the future. Maybe I’m also just choosing better priorities as I get older… 
4. Electric vehicles are clearly not the only component to a clean transportation transition. Along my journey, I saw wonderful pedestrian and bicycle infrastructure, United States Postal Service cargo bicycles, scooter and bike shares, dedicated bus lanes and free transit shuttles, water taxis, and more. We need comprehensive approaches to provide clean transportation options for all users. 
5. While EVs have zero emissions from the tailpipe, there are still associated emissions from electricity generation and of course the initial manufacturing. It is critical we address all of the life cycle and associated emissions by shifting electrical generation to increasingly rely upon renewables like wind, solar, and energy storage. Similarly, the manufacture of all vehicles, including EVs, needs to pivot rapidly to eliminate extractive and abusive practices and much more must be done to mitigate environmental impacts of mining and manufacturing. At the same time, those raising concerns about the manufacture of EVs should do so in good faith and recognize the long-established and ongoing impacts implicit in the extraction and manufacture of fossil fuels and fossil fuel burning vehicles. 
6. Finally, no Acadia Center story is complete without data! My total round trip was 3,636.5 miles. I used 1,084.9 kilowatt hours (kWh) for an average of 3.35 miles per kWh or, correspondingly, about 298-Watt hours per mile (Wh/mile). In typical driving conditions, my overall consumption is between 225 and 250 Wh/mile, and I can reasonably theorize the decreased efficiency on this trip was due to a few factors, including: 
   • Higher sustained speeds from southern Virginia through most of Florida due to lower highway congestion and higher posted speed limits; 
   • Increased use of air conditioning from South Carolina through Florida; 
   • Combined weight of passengers and luggage that ranged from 500-1000 pounds throughout the trip; 
   • Driving with the windows down for approximately 1500 miles of the 3,636.5–mile journey; 
7. Assuming I used a gas-powered hybrid achieving 30 miles per gallon at that week’s East Coast retail average price of $4.33 per gallon, I would have consumed approximately 121 gallons of fuel at a cost of $524. Comparatively, I would have spent approximately $325 on electric charging assuming an average per kWh cost of $0.30—a conservatively higher price for electricity to account for Tesla Supercharging and Blink fees as well as any applicable demand charges or other possible rate structures utilized across the states where I charged. This comparison is illustrative only and admittedly imprecise because of the widespread availability of complimentary electric vehicle charging as a customer amenity. 

For more information: 

Hank Webster, Rhode Island Director & Senior Policy Advocate, hwebster@acadiacenter.org, 401.276.0600 ext.402 

Federal court rules against part of New England grid operator reliability plan

A federal appeals court has thwarted part of a plan to improve the reliability of New England’s electric grid during the winter that would pay electricity generators extra for keeping fuel on-site.

As climate change causes more unreliable weather and conflict in Ukraine pinches energy markets, ISO-New England, the organization in charge of keeping the region’s lights on, is planning to provide payments to electricity generators to keep three days worth of fuel on hand.

Their plan, called the Inventoried Energy Program, is meant to improve the reliability of the grid during winter, in particular on some of the coldest days of the year. The program would be used for the winters between 2023 and 2025.

But after federal regulators approved the plan in 2020, a group of petitioners, including the state of New Hampshire, challenged their decision in court.

Challengers said certain kinds of electricity generators – those using coal, nuclear, biomass, and hydropower – already keep three days worth of fuel on site. ISO-New England would be paying those generators an extra $40 million dollars a year for just doing what they already do.

While the federal appeals court agreed with the challengers, saying those generators would not change their behavior in response to subsidies, it also upheld the rest of the Inventoried Energy Program.

Melissa Birchard, director of clean energy and grid reform at the Acadia Center, said the decision was a partial win.

“This decision from the court does at least protect consumers from some wasted expenditures,” she said.

But, Birchard said, what the grid needs is long-term solutions for reliability that move away from fossil fuels, which New England has to import from sometimes-volatile international markets.

Solutions that move towards renewable energy are also important for mitigating climate change, Birchard said.

“We need markets, regional markets that promote the development of clean reliability resources,” she said. “And right now, our markets aren’t doing that effectively. And so instead, we keep relying on fossil fuels.”

Energy efficiency, battery storage, and demand response programs – where consumers shift the time of day when they use electricity – can all contribute to reliability, Birchard said.

Read the full article in New Hampshire Public Radio here.

Maine energy efficiency plan puts priority on equity, electrification

Maine’s utility regulators have approved the state’s latest three-year energy efficiency plan, a set of programs and incentives that environmental and community advocates say will make it easier for low-income and rural residents to weatherize their homes and access electric vehicle chargers.

The plan substantially increases funding for programs serving low- and moderate-income households, continues efforts to expand electric vehicle charging infrastructure into more sparsely populated areas, and builds upon the state’s already nation-leading heat pump incentives. In total, the plan calls for spending just under $300 million over three years and projects a lifetime benefit totaling $1.5 billion for the state, in addition to the environmental gains it is expected to produce.

“We think that these benefits extend beyond the economic savings to include really important progress with carbon reductions and improving our energy independence, which has never been more important,” said Michael Stoddard, executive director of the Efficiency Maine Trust, the quasi-governmental agency that administers the bulk of the state’s efficiency programs.

Efficiency Maine puts out a new plan every three years, outlining its intended goals, spending, and programs. The newly approved plan, called Triennial Plan V, covers the years 2023 to 2025 and has been widely praised.

“This is a wonderful plan,” said Jeff Marks, Maine director for climate and energy nonprofit the Acadia Center. “This gets at a lot of the priorities in Maine.”

In recent years, Maine has made some ambitious climate commitments. In 2019, a new law set a goal of having 100,000 electric heat pumps installed in Maine by 2025, a target the state is well on the way to reaching. That same year, Gov. Janet Mills set a goal to make the state carbon-neutral by 2045. And, at the end of 2020, the state released Maine Won’t Wait, a comprehensive climate action plan that lays out a roadmap for reaching the state’s goal of cutting greenhouse gas emissions by 80% by 2050.

At the same time, this new plan arrives at a moment when Maine is increasingly feeling the strain of rising energy prices. At the beginning of the year, prices for electric supply went up between 83% and 89% for customers of Maine’s major electric utilities. More than 60% of homes in the state use heating oil for home heating, and prices for that fuel have more than doubled since the same time last year.

“We saw the family impacts of fossil fuel volatility really strike home this winter,” said Jack Shapiro, climate and clean energy director for the Natural Resources Council of Maine.

The plan’s strong focus on making cost-saving measures available to lower-income and rural residents is therefore especially welcome, advocates said.

The plan calls for spending some $33.2 million on services directed to low- and moderate-income households, an increase of more than 40% over the amount budgeted in the previous three-year plan. Much of this growth comes thanks to money from the American Rescue Plan Act, the federal COVID-response bill. This infusion of federal money will allow a sixfold increase in spending on weatherization services for households in the target group.

To scale up these services effectively, Efficiency Maine will in many cases conduct outreach directly to eligible households, help homeowners select the right products for their needs, and coordinate with vendors for installation.

This strategy is key for reaching some of Maine’s more isolated communities, said Suzanne McDonald, chief community development officer for the Island Institute, a nonprofit that supports island and coastal communities in Maine. Residents of rural areas may have a difficult time finding qualified contractors who are local or willing to drive or fly to remote towns or island communities. The direct outreach model can help overcome those barriers, she said.

Another $6.8 million will be directed into electric vehicle initiatives. The plan will continue to fund point-of-sale electric vehicle rebates — $2,000 for a new battery-electric car, $5,500 for a new car purchased by a low-income buyer, and $2,500 for a used vehicle for a low-income household. The plan also calls for the deployment of more charging infrastructure in rural parts of the state where opportunities to charge up are few and far between.

“What makes this plan feel like it’s made in Maine, for Maine is that it has a real commitment to equity in terms of income equity and geographic equity,” McDonald said.

Another $57.7 million — a 33% increase over the previous plan — is budgeted to accommodate expected increased activity in home energy savings programs, centered largely on weatherization and heat pump installation. And $86.8 million is allocated to commercial and industrial programs, including education about and incentives for energy-efficient heating and cooling, ventilation, and lighting systems.

While environmental and community advocates had strong praise for the new plan, they have started to think about strategies for even better serving Mainers and cutting energy use next time around. Particularly, many activists would like to see a focus on whole-home retrofits, considering heating, appliances, and weatherization as a system.

“If we can somehow incentivize whole-home packages, we will be able to make those improvements better and stronger,” Marks said.

As a whole, the plan provides a model other states should take note of, said Erin Cosgrove, public policy manager for the nonprofit Northeast Energy Efficiency Partnerships. Most notably, Maine’s heat pump program is charging ahead, she said, while other states in the region are still conducting pilot programs.

“They’re leading the way as we look at transitioning into electrification,” Cosgrove said. “Maine is really a shining example.”

Read the full article in Energy News Network here.

38 Groups Across New England Issue Letter to Support Joint State RFI for Transmission for Offshore Wind

FOR IMMEDIATE RELEASE
JUNE 16, 2022

Boston, MA – Today, over three dozen New England organizations including environmental and community groups, labor unions, and businesses and associations from across each of the six New England states sent a letter to the New England Governors urging them to issue a joint Request for Information (RFI) for electric transmission solutions for offshore wind. The letter, signed by a large diversity of groups that has never before come together to collectively advocate for transmission infrastructure, urges the New England states to jointly issue an RFI for transmission to connect offshore wind to consumers, and requests that the RFI include a solicitation for planned, offshore grid solutions.

New England boasts some of the best offshore wind resources in the country. Harnessing the economic potential of offshore wind can drive growth in the region, help build an equitable clean economy with high-quality jobs, and save billions of dollars for electric ratepayers.

Today’s letter breaks new ground by including organizations and interests from across each of the six New England states to advocate for transmission for offshore wind. “Offshore wind is the single biggest lever we can pull to address the climate crisis, meet our energy needs, and grow our economy all simultaneously,” said Susannah Hatch, of the Environmental League of Massachusetts, speaking on behalf of the New England for Offshore Wind coalition. “Transmission is a critical challenge that needs to be addressed in order for us to seize this opportunity and unlock the next generation of offshore wind projects in the region. Given the astounding benefits that the responsible development of offshore wind would offer our region – from high-quality jobs and economic opportunity to reducing pollution and carbon emissions, it’s no wonder that diverse interests across all six states want to see it get built. We are eager to see the six states move ahead on transmission solutions for offshore wind now.”

“A broad diversity of groups is excited to bring more clean offshore wind to New England communities and we all recognize that can’t be done without cables to deliver the power,” said Melissa Birchard, Director for Clean Energy & Grid Reform at Acadia Center, a clean energy advocacy and research organization that participated in the group letter. “It’s critical to get to work now on the transmission solutions to connect New England with more offshore wind, and a joint request for information about well-planned, offshore grid solutions would jumpstart that work. A well-planned offshore grid that channels more wind to communities using fewer cables could slash costs and impacts.”

Both groups said they hope the strong showing of support across New England for transmission solutions will convince the New England governors to move ahead now with an RFI for transmission for offshore wind.

Read the Letter to New England Governors on Offshore Wind Transmission

Press Contacts:
Susannah Hatch, shatch@environmentalleague.org, 978-852-3629
Melissa Birchard, mbirchard@acadiacenter.org, 857-276-6883

New England for Offshore Wind (NE4OSW) is a collaborative, broad-based coalition that includes partners from a diverse array of organizations and communities across New England. We are committed to combatting climate change by increasing the supply of clean energy to our regional grid through more procurements of responsibly developed offshore wind.

Acadia Center is a northeast-based nonprofit research and advocacy organization advancing a safe climate and a clean energy future that benefits everyone.

Seizing the Moment to Push for Climate Action in Massachusetts

On Monday, Acadia Center’s Environmental Justice Associate, Joy Yakie, joined advocates from environmental justice organizations, labor union officials, businesses, and other climate activists to reiterate the urgency of climate action. Yakie emphasized that the state can further climate goals and progress towards a smooth and faster transition to clean energy by implementing climate action plans to make its goals a reality. With the funding from the American Rescue Plan Act (ARPA), the state can continue to establish its exemplary leadership on state-level climate solutions by making opportunities for an increased clean energy workforce, stated Joe Curtatone, President of Northeast Clean Energy Council (NECEC) and organizer of the press conference. Other speakers and represented groups included the Conservation Law Foundation (CLF), Ceres, Browning the Green Space (BGS), GreenRoots, 350 Mass, Mass Renews Alliance, SparkCharge, and others. The full recording of the event can be accessed here.

Average CMP bill to decrease almost 3% for home customers starting in July

Who says energy prices never go down?

The typical Central Maine Power residential customer will see their monthly bill decrease by $3.40 or 2.7 percent of the total bill, effective July 1, state regulators announced Tuesday.

The decrease is the result of an annual reconciliation of costs, power contracts and other financial considerations conducted by CMP and Versant Power, the state’s two largest electric utilities.

In approving the rate decreases for both utilities, the Maine Public Utilities Commission said the sale of energy from renewable energy projects, in particular, is driving generation costs down, resulting in lower customer bills.

Versant Power customers will see a slightly smaller rate decrease than CMP customers will get, the commission said, although it had yet to complete the exact calculations for Versant on Tuesday.

With consumer price inflation still out of control, PUC commissioners said they are interested in keeping Mainers’ electricity costs as low as possible this year.

“It’s not always easy to quantify the impact of the renewable energy procurements facilitated by the commission, as it can take some time to see the results,” PUC Chairman Philip Bartlett said. “This is an example of the payoff of those procurements, and we are pleased to be able to offer this positive news during a time when energy prices have been trending upward at an unprecedented rate.”

Maine law requires utilities to buy electricity generated by renewable energy suppliers at rates negotiated by the PUC. The utilities then generally sell that electricity on the open market. This year, the market was particularly favorable for those with a supply of electricity to sell.

The utilities were able to make millions of dollars off the sale of the electricity, which is then calculated in the year-end reconciliation of costs and revenue, resulting in a rate decrease for customers.

The PUC noted that the calculations are the result of “many moving parts,” but said the net impact is lower costs for customers of CMP, Versant Power-Bangor Hydro District residential customers and Versant Power-Maine Public District residential customers.

“This is welcome news for many Mainers as they face increasing costs across the board,” Joe Purington, president and chief executive of CMP, said in a statement.

State officials also applauded the rate cut, particularly since it was due at least in part to increased renewable energy generation in Maine.

“The PUC’s action shows the clear connection between renewable energy and lower electricity costs,” said Dan Burgess, director of the Governor’s Energy Office. “These savings from renewable energy couldn’t come at a better time for Maine people.”

The rate reduction also was lauded by the Acadia Center, which pushes for environmentally friendly energy policies.

“We’re tough on our utilities when their performance fails, but Maine homeowners will appreciate the small dip in their electricity delivery rates next month,” said Jeff Marks, the center’s Maine director.

Marks said new laws to ensure utility accountability and grid planning “will help ensure rate decreases are not an anomaly, especially as more solar and wind come online.”

Despite the short-term savings attributed in part to solar, Maine ratepayers are still expected to see significant future rate increases as more renewable energy projects come online.

State officials have estimated that power delivery rates – which only account for half the bill – could rise by at least 35 percent by 2025 if solar projects totaling 1,667 megawatts of capacity come online as planned.

Nailing down the precise impact on ratepayers isn’t easy because of the complicated formula that underpins Maine’s net energy billing incentive program for solar developers and uncertainty about the number of projects that ultimately will get built.

Read the full article in Portland Press Herald here.

Rhode Island House Members’ Proposed $13.6 Billion Budget Fails to Fund EC4

PROVIDENCE — The agency that is taking the lead on the state’s climate-change response will have to go another year without a budget, after House lawmakers failed to include funding for the Executive Climate Change Coordinating Committee (EC4) in their spending plan.

House members unveiled their version of a $13.6 billion state budget last week.

Gov. Dan McKee’s budget proposal in January suggested “scooping” $6 million annually from state energy-efficiency money to fund the committee, which operates without funding and relies on a single staff member on loan from the Rhode Island Department of Environmental Management. While the move from the governor was not popular among local environmental groups, the House did not provide an alternative method of funding the EC4.

“The ratepayers scoop of energy-efficiency funds has been removed, which is a good thing, we advocated for that,” said Hank Webster, Rhode Island director of the Acadia Center. “However, we also advocated for policymakers to find another way to fund the EC4’s activities.”

DEM director and EC4 chairman Terry Gray told ecoRI earlier this year that the greater impact would come from the committee having no operating budget. “From my standpoint as the EC4 chair, we need money to implement the Act on Climate,” he said. “The source of the money can be debated, and where it comes from is I think secondary to the fact that we get some kind of investment in the EC4 to make the work happen.”

Still, the fiscal 2023 budget indicates lawmakers are ready to spend money and resources on environmental management. DEM is slated to receive 16 new full-time positions under the House version of the budget, as opposed to the nine it requested earlier this year. At least six of those new hires would be in the department’s permitting and compliance offices, areas in which staffing for years has been seen by outside observers as insufficient.

The Coastal Resources Management Council (CRMC) would receive $150,000 to hire a full-time hearing officer, an attorney, to adjudicate contested decisions by its voting body. McKee had proposed $15,000 for a part-time hearing officer. Hiring a full-time hearing officer was one of the short-term recommendations from a special legislative commission created to study CRMC reorganization.

Lawmakers are also giving $4 million to the Ocean State Climate Adaptation and Resilience (OSCAR) Fund. The fund was created last year by the General Assembly, but at the last minute its funding mechanism — charging a nickel per barrel of oil and petroleum products imported into the state — was stripped from the bill.

“It’s really great news, we’ve been advocating for OSCAR for five years,” said Topher Hamblett, director of advocacy and policy for Save The Bay.

OSCAR awards grants to municipalities to improve climate resiliency by using and improving “natural” features: resizing culverts or restoring floodplains and saltwater marshes, for example. The program is in addition to Municipal Resilience Program grants administered by the Rhode Island Infrastructure Bank.

The House Finance Committee also recommended $25 million from State Fiscal Recovery funds for an electric heat pump incentive program, designed to help low- and moderate-income households buy and install electric heating systems to replace heating oil or natural gas systems. Residential heating accounts for 18.3% of all greenhouse gas emissions in Rhode Island.

Starting in September, the Rhode Island Public Transit Authority (RIPTA) will run a one-year pilot program with free bus service on the R-Line, a popular route starting at Broad Street in South Providence and running to the Pawtucket Transit Center on Roosevelt Avenue. RIPTA will be mandated to track ridership data and submit a report to the Legislature by March 2024 for further evaluation of the program. Sen. Meghan Kallman, D-Pawtucket, and Rep. Leonela Felix, D-Pawtucket, had introduced legislation this session to make all RIPTA bus routes free. The bill was held for further study.

The budget is far from final. Lawmakers’ version of the budget is scheduled for a full vote of the House on Thursday afternoon, and legislators may still make changes on the floor.

Read the full article in ecoRI News here.

Increasing Participation for Equitable Outcomes in Climate Decision-making

Climate policies are undeniably strengthened by the inputs of communities most likely to be impacted by such policies. Similarly, exclusion or lack of involvement of communities poised to suffer the detrimental impact of climate change and pollution unequivocally lead to ineffective policies. Communities of color and low-income communities often suffer the repercussions of flawed environmental policies. Hence, for communities to stay resilient in enduring the challenges of a changing climate, it is important to ensure that emerging policies are formed with inputs from the most impacted communities.

Flawed environmental and climate policy decision-making that excluded the voices of vulnerable communities dates back to the 80s. In 1982, residents of Warren County in North Carolina, engaged in a protest to fight against the dumping of 40,000 cubic yards of PCB (polychlorinated biphenyl) contaminated soil in their community. PCB chemicals were banned in the United States in 1979 because they harm human and environmental health but are persistent in air, water, and waste. That early demonstration against environmental racism and injustice was the first of many, exposing the injustice that persists when policies exclude the needs of the most vulnerable groups and communities. Recently, the Intergovernmental Panel on Climate Change (IPCC) released its most recent climate assessment to reiterate the impact climate would have on communities (cities and settlements) situated by the sea or ocean. For these ‘frontline communities’, mitigating climate change impacts demand that their voices and lived experiences need to shape the resultant policies for their specific climate solutions.

Maine’s trailblazing effort to engage Vulnerable Communities to Climate Change

Acadia Center championed LD1682 in Maine with the understanding that state agencies should consider climate and equity in their mandates, starting with the Public Utility Commission (PUC).  LD 1682 – An Act to Require Consideration of Climate Impacts by the Public Utilities Commission and To Incorporate Equity Considerations in Decision-making by State Agencies was considered one of the most far-reaching, impactful climate and equity bills in the 130^th Legislature. Parties in PUC cases are already using the law as a basis for stronger PUC actions related to climate change. Environmental and climate justice can help empower Maine’s communities to be healthier and more resilient, and state agencies must support this work.

The passage of LD1682 became the groundwork for the passage of LD2018 – Act to Implement Recommendations Regarding the Incorporation of Equity Considerations in Regulatory Decision Making.  With the implementation of this bill, access to proceedings and the decision-making process would be made possible for environmental justice communities, frontline communities, lower-income communities, and communities of color. More importantly, this bill creates opportunities for supposedly hard-to-reach communities to have access to proceedings that will determine their readiness for climate change. It puts environmental justice and climate action at the center of the state government’s work.

As agencies at all levels of government continue to make strides to undo climate change and ensure a smooth transition to clean energy, it is important to ensure that all communities partake in the policy and decision-making process. A key strategy for equitably tackling climate issues that communities face is continuously improving access to public forums that inform and educate. Including this crucial effort goes beyond providing a balanced perspective in climate policy. It allows communities to have a more productive outcome in effecting change by not reacting but informing the decision-making process.

For more information:

Joy Yakie, Environmental Justice Associate, jyakie@acadiacenter.org, 617-742-0054 x110

Jeff Marks, Maine State Director, jmarks@acadiacenter.org, 207.236.6470 ext. 304

Acadia Center Releases Its 2021 Annual Report

Today, Acadia Center released its 2021 Annual Report – “Be an Agent of Change” – an interactive microsite that highlights the organization’s 2021 stories of impact and progress and hopes for its future. Acadia Center’s mission is to advance bold, effective, and equitable clean energy solutions for a livable climate and a stronger, more equitable economy. But damaging effects of climate change were unprecedented in 2021. However, also unprecedented was the collective recognition, determination, and willingness to act on climate. This year’s Annual Report outlines Acadia Center’s eagerness to envision bold, systemic solutions, partnered with pragmatic, community-inspired approaches to addressing the climate crisis. 

None of this would be possible without generous individuals and foundations who enthusiastically support Acadia Center’s work. With leadership from our Board of Directors, and our dedicated and passionate staff, we can accelerate the change communities urgently need. Thank you for your unwavering encouragement and partnership. 

Read the full report HERE.