Code of Maine Rules › 65 - DEPARTMENT OF PUBLIC UTILITIES COMMISSION › 407 - PUBLIC UTILITIES COMMISSION › Chapter 325 - COMMUNITY-BASED RENEWABLE ENERGY PILOT PROGRAM › Section 407-325-6 - LONGTERM CONTRACTING

Current through 2024-29, July 17, 2024
A.
Commission Authority.
The Commission may direct
				investor-owned transmission and distribution utilities to enter into long-term
				contracts with program participants located within the service territory of the
				utility for energy, capacity or renewable energy credits. The contract may be
				for physical delivery of the products or may be a financial
				transaction.
B.
Participant Option.
The program participant has the
				option to sell capacity or renewable energy credits to the transmission and
				distribution utility. A long-term contract under this section must include
				either all or a specified percentage of the energy output of the eligible
				renewable resource. In the event a program participant is not receiving value
				for capacity or renewable energy credits, the Commission may direct the program
				participant to transfer the capacity or renewable energy credits to the
				transmission and distribution utility if the Commission finds that the capacity
				or renewable energy credits is reasonably likely to have value for ratepayers
				without creating an undue administrative burden.
C.
Large Generators.
For program participants with a generating capacity of one megawatt or more,
				the Commission shall conduct competitive solicitations for long-term contracts
				as specified in this sub-section.
1.
Periodic Solicitations.
The Commission shall
				periodically conduct a competitive bid process for community-based renewable
				energy projects. To participate in the bid process, a program participant must
				be certified by the Commission pursuant to section
				4 of this Chapter. The Commission
				shall not conduct bid processes if the applicable pilot program capacity limits
				specified in section
				3 are reached or if there are no
				certified community-based renewable energy projects that are not already
				participating in the long-term contract program incentive pursuant to section
				6 or the renewable energy credit multiplier
				program incentive pursuant to section
				7.
2.
Requests for Proposals;
				Standard Form Contracts.
The Commission shall solicit bids for
				community-based renewable energy projects through the issuance of a request for
				proposals that contains all the standards, procedures and requirements for the
				bid solicitation process. The request for proposals shall contain a standard
				form contract. As part of the solicitation and selection process, the
				Commission may accept modifications to the standard form contracts. The
				Commission delegates to the Director of the Electricity and Gas Utility
				Industries the authority to develop and approve the requests for proposals and
				the standard contract, and to accept modifications to the standard form
				contract. The request for proposals shall, at a minimum, require that the
				proposals contain the proposed pricing terms, full project cost disclosure,
				expected revenue sources in addition to the long-term contract, and the
				Commission order certifying the project as a community-based renewable energy
				project pursuant to section
				4 of this Chapter.
3.
Evaluation of Proposals;
				Bidder Negotiations.
The Commission shall evaluate submitted
				proposals to determine compliance with the standards, procedures and
				requirements contained in the request for proposals. Following review of
				proposals, the Commission may engage in negotiations or discussions with
				bidders or a subset of bidders to clarify, refine or improve the proposals. At
				the direction of the Commission, the applicable transmission and distribution
				utility shall participate in bid evaluations or negotiations. The Commission
				may accept one or more of the proposals or none of the proposals based on its
				assessment of whether proposals meet the requirements of the request for
				proposals and this Chapter.
4.
Selection Criteria.
The Commission will select
				proposals that are certified pursuant to section
				4 of this Chapter, satisfy the
				requirements of the request for proposals of subsection C(2) and meet the cost
				containment provisions of subsection E. In considering the cost containment
				requirement, the Commission will take into account revenue the program
				participant will likely receive if capacity resource or renewable energy
				credits are not sold to the transmission and distribution utility. In the event
				the proposals exceed the applicable pilot program capacity limits, the
				Commission will select proposals that provide the lowest net cost to ratepayers
				over the term of the proposed contract.