An Act To Enhance Maine's Energy Independence and Reduce Electricity Costs
Maine Legislature, Session 123, LD 1346
Committee: Utilities and Energy
Sponsors: FLETCHER
Amends: 35-A MRSA §3210, 35-A MRSA §321, 35-A MRSA §3212

No. 1346 
Legislative Document 
H.P.955 
House of Representatives, March 12,2007 
An Act To Enhance Maine's Energy Independence and Reduce 
Electricity Costs 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative FLETCHER of Winslow. 
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MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3210, sub-§2, ~A-l is enacted to read: 
A-I. 
"Alternative compliance payment rate" means a certain dollar amount per 
kilowatt hour established by the commission that a competitive electricity provider 
pays to the commission to satisfy the portfolio requirements of subsection 3-A. 
Sec. 2. 35-A MRSA §3210, sub-§2, ~-1 is enacted to read: 
B-1." Renewable energy credit" means a tradable instrument that represents an 
amount of electricity generated from renewable resources. 
Sec. 3. 35-A MRSA §3210, sub-§3-A, is enacted to read: 
3-A. 
Portfolio requirements; new renewable capacity resources. 
Portfolio 
requirements for new renewable capacity resources, as defined in section 3210-C, are 
governed by this subsection. 
A. Except as provided in paragraph B, effective January 1, 2008, as a condition of 
licensing pursuant to section 3203, each competitive electricity provider in this State 
must demonstrate in a manner satisfactory to the commission that the percentage of 
its portfolio of supply sources for retail electricity sales in this State accounted for by 
new renewable capacity resources is as follows: 
(1) One percent for the period January 1, 2008 to December 31, 2008; 
(2) Two percent for the period January 1, 2009 to December 31, 2009; 
(3) Three percent for the period January 1, 2010 to December 31, 2010; 
(4) Four percent for the period Januan' I, 2011 to December 31, 2011; 
(5) Five percent for the period January 1, 2012 to December 31,2012; 
(6) Six percent for the period January 1, 2013 to December 31, 2013; 
(7) Seven percent for the period January 1, 2014 to December 31, 2014; 
(8) Eight percent for the period January 1, 2015 to December 31, 2015; 
(9) Nine percent for the period January 1, 2016 to December 31, 2016; and 
(10) Ten percent for the period January 1, 2017 to December 31, 2017. 
Resources used to satisfy the requirements of this paragraph may not also be used to 
satisfy the requirements of section 3210, subsection 3. 
B. 
If by March 31st of the years 2010, 2012~4 and 2016 the commission 
determines that investment in new renewable capacity resources in the preceding 2 
calendar years has not been sufficient for c9mpetitive electricity providers to meet the 
portfolio requirements of paragraph A and that the resulting use of renewable e~ 
credits pursuant to subsection 8 or the alternative payment mechanism pursuant to 
§ubsection 9, or both of these methods, has burdened electricity customers in the 
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II 
State without providing the benefits of new capacity resources, the commission may 
~l!22end all or some of the reg!!i!:ements of paragraph A. 
C. 
No later than March 31, 2008 and annually thereafter, the commission shall 
submit a report regarding the status of new renewable capacity resources to the joint 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters. The report must include, but is not limited to, a description of new renewable 
capacity resources available to meet the portfolio requirements of paragraph A, 
documentation of the loss of any existing renewable generation capacity in the State 
and recommendations to stimulate investment in new renewable capacity resources. 
The commission shall adopt rules to implement this subsection. Rules adopted under this 
subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 4. 35-A MRSA §3210, suh-§8, as enacted by PL 2005, c. 646, §2, IS 
amended to read: 
8. Credit trading. The commission shall allow competitive electricity providers to 
satisfy the portfolio requirements of subsection 3 and subsection 3-A through the use of 
renewable energy credits if the commission determines that a reliable system of electrical 
attribute trading exists. 
Sec. 5. 35-A MRSA §321O, suh-§9 is enacted to read: 
9. 
Alternative compliance payment; new renewable capacity resource 
requirements. The commission shall allow competitive electricity providers to satisty 
the portfolio requirements for new renewable capacity resources under subsection 3-A 
through an alternative compliance payment in accordance with this subsection. 
A. The commission shall set the alternative compliance pavment rate by rule and 
shall publish the alternative compliance payment amount by January 31 st of each 
year. In setting the rate, the commission shall take into account prevailing market 
prices and standard-offer service prices for electricity during the previous calendar 
year. 
B. 
The commission shall collect alternative compliance payments made by 
competitive electricity providers and shall deposit all funds collected under this 
subsection in the conservation program fund established under section 3211-A, 
subsection 5 to be used solely for conservation programs. 
C. If the commission finds that alternative compliance payments are made pursuant 
to this subsection in 3 consecutive calendar vears, the commission shall suspend all 
or some of the portfolio requirements for new renewable capacitv resources of 
subsection 3-A. 
The commission shall adopt rules toj.!!mlement this subsection. Rules adopted under this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchaRter 2-A. 
Sec. 6. 35-A MRSA §3212, suh-§4-D is enacted to read: 
4-D. 
Green standard offer. 
Effective March I, 2009, the commission shall 
establish a green standard offer service option that is composed of 100% renewable 
I 
resources, as defined in section 3210. 
The green standard-offer service must be in 
addition to existing standard-offer service. 
The commission shall adopt rules to 
implement this subsection. Rules adopted under this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
Current law establishes as a policy of the State the goal of increasing by 10% the 
share of new renewable capacity resources as a percentage of the total capacity resources 
in this State on December 31, 2007 by 2017. This bill implements that policy goal by 
establishing portfolio requirements for new renewable capacity resources, beginning at 
% for calendar year 2008 and increasing by one percentage point per year until 2017. 
II 
The bill allows competitive electricity providers to meet the new renewable capacity 
portfolio requirements through the use of renewable energy credits or an alternative 
compliance payment mechanism to be established by the commission. The bill allows the 
Public Utilities Commission to suspend all or some of these new portfolio requirements if 
it finds that investment in new renewable capacity resources is insufficient and the 
resulting use of the renewable energy credits or the alternative payment system has 
burdened electricity customers, and it requires the commission to suspend the 
requirements if the alternative payment system is used to meet the portfolio requirements 
for 3 or more consecutive years. The bill requires the commission to report annually to 
the Legislature regarding the status of new renewable capacity resources in the State. 
The bill also allows competitive electricity providers to meet the renewable portfolio 
requirements through the use of renewable energy credits without requiring that the 
commission determine that a reliable system of electrical attribute trading exists. Finally, 
the bill requires the Public Utilities Commission to establish a standard-offer service that 
is composed of 100% renewable resourCeS beginning in 2009.