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An Act To Lower the Price of Electricity for Maine Consumers
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 35-A MRSA §3210, sub-§2, ¶B-3, as enacted by PL 2009, c. 542, §3, is amended to read:
 
B-3. "Renewable capacity resource" means a source of electrical generation:
 
(1) Whose total power production capacity does not exceed 100 megawatts and relies on one or more of the following:
 
(a) Fuel cells;
 
(b) Tidal power;
 
(c) Solar arrays and installations;
 
(d) Geothermal installations;
 
(e) Hydroelectric generators that meet all state and federal fish passage requirements applicable to the generator; or
 
(f) Biomass generators that are fueled by wood or wood waste, landfill gas or anaerobic digestion of agricultural products, by-products or wastes; or
 
(2) That relies on wind power installations.
Sec. 2. 35-A MRSA §3210, sub-§2, ¶C, as amended by PL 2009, c. 542, §5, is further amended to read:
 
C. "Renewable resource" means a source of electrical generation:
 
(1) That qualifies as a small power production facility under the Federal Energy Regulatory Commission rules, 18 Code of Federal Regulations, Part 292, Subpart B, as in effect on January 1, 1997; or
 
(2) Whose total power production capacity does not exceed 100 megawatts and that relies on one or more of the following:
 
(a) Fuel cells;
 
(b) Tidal power;
 
(c) Solar arrays and installations;
 
(d) Wind power installations;
 
(e) Geothermal installations;
 
(f) Hydroelectric generators;
 
(g) Biomass generators that are fueled by wood or wood waste, landfill gas or anaerobic digestion of agricultural products, by-products or wastes; or
 
(h) Generators fueled by municipal solid waste in conjunction with recycling.
Sec. 3. 35-A MRSA §3210-C, sub-§2, as enacted by PL 2005, c. 677, Pt. C, §1, is amended to read:
 
2. Policy.   It is the policy of this State:
 
A. That the share of new renewable capacity resources as a percentage of the total capacity resources in this State on December 31, 2007 increase by 10% by 2017 and that, to the extent possible, the increase occur in uniform annual increments;
 
B. To reduce electric prices and price volatility for the State's electricity consumers and to reduce greenhouse gas emissions from the electricity generation sector; and
 
B-1.  To reduce greenhouse gas emissions from the electricity generation sector; and
 
C. To develop new capacity resources to reduce demand or increase capacity so as to mitigate the effects of any regional or federal capacity resource mandates.
Sec. 4. 35-A MRSA §3210-C, sub-§3, as amended by PL 2011, c. 273, §1 and affected by §3 and amended by c. 413, §2, is repealed and the following enacted in its place:
 
3.  Commission authority.     The commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts for:
 
A.  Capacity resources;
 
B.  Any available energy associated with capacity resources contracted under paragraph A:
 
(1) To the extent necessary to fulfill the policy of subsection 2, paragraph A; or
 
(2) If the commission determines appropriate for purposes of supplying or lowering the cost of standard-offer service or otherwise lowering the cost of electricity for the ratepayers in the State. Available energy contracted pursuant to this subparagraph may be sold into the wholesale electricity market in conjunction with solicitations for standard-offer supply bids; and
 
C.  Any available renewable energy credits associated with capacity resources contracted under paragraph A. The price paid by the investor-owned transmission and distribution utility for the renewable energy credits must be lower than the price received for those renewable energy credits at the time they are sold by the investor-owned transmission and distribution utility.
 
The commission may permit, but may not require, investor-owned transmission and distribution utilities to enter into contracts for differences that are designed and intended to buffer ratepayers in the State from potential negative impacts from transmission development. To the greatest extent possible, the commission shall develop procedures for long-term contracts for investor-owned transmission and distribution utilities under this subsection having the same legal and financial effect as the procedures used for standard-offer service pursuant to section 3212 for investor-owned transmission and distribution utilities.
 
The commission may enter into contracts for interruptible, demand response or energy efficiency capacity resources. These contracts are not subject to the rules of the State Purchasing Agent. In a competitive solicitation conducted pursuant to subsection 6, the commission shall allow transmission and distribution utilities to submit bids for interruptible or demand response capacity resources.
 
Capacity resources contracted under this subsection may not exceed the amount necessary to ensure the reliability of the electric grid of this State, to meet the energy efficiency program budget allocations articulated in the triennial plan as approved by the commission pursuant to section 10104, subsection 4 or any annual update plan approved by the commission pursuant to section 10104, subsection 6 or to lower customer costs as determined by the commission pursuant to rules adopted under subsection 10.
 
Unless the commission determines the public interest requires otherwise, a capacity resource may not be contracted under this subsection unless the commission determines that the capacity resource is recognized as a capacity resource for purposes of any regional or federal capacity requirements.
 
The commission shall ensure that any long-term contract authorized under this subsection is, as a primary consideration, anticipated to lower the price of electricity to ratepayers over the life of the contract. The commission shall also consider whether the contract is consistent with the State's goals for greenhouse gas reduction under Title 38, section 576 and the regional greenhouse gas initiative as described in the state climate action plan required in Title 38, section 577.
Sec. 5. 35-A MRSA §3210-C, sub-§4, as amended by PL 2007, c. 293, §3, is further amended to read:
 
4. Priority of capacity resources.   In selecting capacity resources for contracting pursuant to subsection 3, the commission shall apply the following standards.
 
A. The commission shall select capacity resources that are competitive and the lowest price when compared to other available offers for capacity resources of the same or similar contract duration or termsand that are anticipated to lower the price of electricity to ratepayers.
 
B.  Among capacity resources meeting the standardstandards in paragraph A, the commission shall choose among capacity resources in the following order of priority:
 
(1) New interruptible, demand response or energy efficiency capacity resources located in this State;
 
(2) New renewable capacityCapacity resources located in this State;
 
(3) New capacityCapacity resources with no net emission of greenhouse gases;
 
(4) New nonrenewable capacity resources located in this State. The commission shall give preference to new nonrenewable capacity resources with no net emission of greenhouse gases;
 
(5) Capacity resources that enhance the reliability of the electric grid of this State. The commission shall give preference to capacity resources with no net emission of greenhouse gases; and
 
(6) Other capacity resources.
Sec. 6. 35-A MRSA §3210-C, sub-§5, as enacted by PL 2005, c. 677, Pt. C, §1, is amended to read:
 
5. Contract term.   A contract entered into pursuant to subsection 3 may not be for more than 10 years, unless the commission finds a contract for a longer term to be prudent.
 
The commission may not issue contracts that exceed 25% of total annual statewide electricity usage.
 
A contract entered into pursuant to subsection 3 may not require a nonrenewable capacity resource to purchase carbon dioxide allowances under the regional greenhouse gas initiative, as defined in Title 38, section 580-A, subsection 19.
 
A contract entered into pursuant to subsection 3 may not require a renewable capacity resource to purchase renewable energy credits, as defined in section 3210, subsection 2, paragraph B-2, and must provide that, by entering into such a contract, the renewable capacity resource satisfies the portfolio requirements for new renewable capacity resources under section 3210, subsections 3 and 3-A.
 
SUMMARY
This bill removes the 100-megawatt limit to qualify as a renewable resource for purposes of meeting the State's renewable resource portfolio requirement.
This bill adjusts language providing for long-term contracts for capacity and energy in a manner that prioritizes and promotes lower costs of electricity to ratepayers over the life of such contracts.
The bill also resolves a technical statutory conflict caused in 2011 by 2 laws amending the same paragraph.