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Exploring Distributed Generation Issues in Maine: Insights from the Maine Public Utilities Commission

This report, presented by the Maine Public Utilities Commission (MPUC), addresses key issues related to distributed generation (DG) in Maine. Highlights include legislative background, interconnection challenges, pricing structures, ownership considerations, and stranded costs associated with DG. Recommendations aim to create an economically level playing field for all energy stakeholders. The MPUC emphasizes the need for a thorough analysis to evaluate the future of DG in the state and ensure fair treatment for all customers. For further details, refer to the MPUC's web page.

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Exploring Distributed Generation Issues in Maine: Insights from the Maine Public Utilities Commission

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  1. Maine’s Look atDistributed Generation Presented by the Maine Public Utilities Commission

  2. Legislative Background • Legislature required MPUC to report on DG issues, with recommendations, by Oct 2002 • Regardless, the time is ripe Presented by the Maine Public Utilities Commission

  3. Maine Background • Strong history of supporting local generation and co-generation • Utility affiliate prohibited from owning DG • Small hydros need help selling generation • Some small generators want to sell their output to contiguous customers Presented by the Maine Public Utilities Commission

  4. Maine’s Issues - Interconnection • Contract • Procedures • Costs • Jurisdiction Presented by the Maine Public Utilities Commission

  5. Me’s Issues – Selling Generation Into the pool – Very difficult under ISO rules To other customers – When does DG owner become a competitive provider or a utility under the law? Net billing – can it be used for DG generation? Presented by the Maine Public Utilities Commission

  6. Maine’s Issues – Utility Pricing • Price structure – high vs low fixed price (rate design proceeding soon) • Standby rates • Pricing flexibility to retain customers – can DG compete? Presented by the Maine Public Utilities Commission

  7. Maine’s Issues – Stranded Costs • of central plant generation (past) – big problem for ratepayers • from DG (future) – how large is the problem? Presented by the Maine Public Utilities Commission

  8. Maine’s Issues – Ownership • Utilities prohibited from owning generation • Should utilities be allowed to own DG? Should affiliates be allowed to own DG? • Different models – own plant, not electricity? Own and lease plant? Maintain plant? Presented by the Maine Public Utilities Commission

  9. Overarching Principles • MPUC recommendations must be based on economics • Should be an economically level playing field • All customers must pay for stranded costs – DG should not be considered economic simply because it bypasses stranded costs Presented by the Maine Public Utilities Commission

  10. The MPUCReports • MPUC Interim Report & Resource Dynamics Technology Report published • Final Report with recommendations due 10/1/2001 • See web page www.state.me.us/mpuc • Contact Marjorie.McLaughlin@state.me.us Presented by the Maine Public Utilities Commission

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