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November 14, 2016

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W W W. M A I N E B I Z . B I Z 11 N OV E M B E R 1 4 , 2 0 1 6 M aine Public Utilities Commission Chairman Mark Vannoy and fellow Commissioners Carlisle McLean and Bruce Williamson have their work cut out for them as they wade through reams of spoken and written testimony received since the Oct. 17 public hearing on a proposed rule to gradually phase out fi nancial incentives designed to encourage consumers to install solar panels on their homes or small businesses. e fi ling period for testimony closed Nov. 2. It's not certain how soon the PUC will decide whether to proceed with a fi nal rule or defer to the new Legislature the question of whether net energy billing (often referred to as "net metering") has served its purpose in jump-starting Maine's solar industry and, if so, should it be replaced with some other payment structure for electricity gener- ated by rooftop solar owners. Here's a small sampling of comments gleaned from documents posted on the PUC's website, which highlight the complexity and high stakes of the pending net metering decision: John Egan, head of lending at CEI: "We've made over $3 million in solar loans in just the past couple of years. We lend these small businesses money and they spend it in the local economy, and that's how policy drives economic development. And I can say fi rsthand that when the announcement for this hearing and this discussion came up, it was an abso- lute chill, if not wet blanket, on our customers talk- ing to their customers about how to do more solar in Maine under the uncertainty of the regulatory climate. … e PUC should defer the discussion on net metering to the Maine Legislature where con- stituents can participate and discuss this issue with their elected representatives." Fortunat Mueller, co-founder of ReVision Energy, largest Maine-based solar company: " e commis- sion appropriately recognized that holding existing customers harmless from any proposed changes is a critical part of any rule change. But 15 years [as the 'grandfather' period for continuing net metering for current solar panel owners], frankly, is way too short. It is far and away the shortest of any proposal across the country and makes Maine the most unfriendly solar state in the nation at this point." Ashley Brown, executive director of the Harvard Electricity Policy Group, a program of the Kennedy School at Harvard University, and former Ohio PUC member: " e commission deserves commendation for joining with many other commissions across the United States in tak- ing up reform of a pricing regime that is not only outdated, but imposes unfair burdens on many consumers, particularly those at the low end of the income spectrum, distorts effi cient price signals, supports infl ated prices for rooftop solar, and is harmful to the long-term sustainability of solar energy. Although the proposed reform is more incremental than ideal, it still represents a signifi - cant step forward in redressing the eff ects of [net energy billing]." Richard P. Hevey, attorney for Central Maine Power: "If Maine is to be successful in implement- ing a sustainable policy of developing renewable distributed energy resources, it needs a new alter- native to net energy billing that fairly compensates [distributed energy generators] for their deliver- ies to the network but also equitably allocates the costs of the transmission and distribution grid to all customers, including customers who chose to install self-generation systems." Patrick Woodcock, director, Maine Governor's Energy Offi ce: "Net energy billing policy is currently being debated across the United States with vocal advocates urging regulators to maintain or expand eligibility. Maine is no exception. However, there are more than 765,000 electric utility customers in Maine who are not net energy billing customers, who stand to be harmed by the continuation of this outdated policy. Many of these are low- or fi xed-income cus- tomers and struggling businesses." P O L I T I C S & C O. B Y J A M E S M C C A R T H Y No easy answers as PUC weighs change in 'net metering' rules 1-800-564-0111 | eatonpeabody.com Augusta | Bangor | Brunswick | Ellsworth | Portland Business Law Commercial Finance Creditor and Debtor Rights Economic Development Employee Benefits Environmental & Land Use Estate Planning & Wealth Transfer Immigration Intellectual Property Labor & Employment Legislative & Government Relations Litigation / Dispute Resolution Municipal Law & Finance Natural Resources & Timberlands Real Estate Tax Aquaculture Artists & Cultural Organizations Automotive Banking & Financial Institutions Business Startups Commercial & Residential Developers Construction Education Energy Healthcare Hospitality Land Conservation Municipal, Quasimunicipal, & County Nonprofit & Charitable Organizations Professional Services Small Business Timberlands & Forest Products Utilities Practice Areas Industries Statewide Practice. Local Service.

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