An Alternative to Net Metering
The Maine Approach
Tim Schneider
Maine Public Advocate
June 7, 2016
October 8, 2015
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Background
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Maine:
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20 MW of solar, mostly residential
1% review trigger
Value of Solar Study
Divided Legislature, Governor
AMI deployment
ISO New England markets
Office of the Public Advocate | State of Maine
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Background
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We won!
 Through stakeholder process and subsequent
negotiations, presented draft legislation supported
by utilities, Maine OPA, every environmental
advocacy group in Maine and the solar industry
 Build 250 MW of solar over 5 years across four
different market segments: residential, C&I,
community and “grid scale”
 End to net metering
 Provide savings to ratepayers
 Passed both houses, unanimous in
Republican controlled Senate!
Office of the Public Advocate | State of Maine
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Background
•
We lost!
– Governor vetoed, veto sustained in Maine House
by two votes
– Primary opponents: national solar groups and
Governor
Office of the Public Advocate | State of Maine
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Principle #1: Separate compensation for
distributed generation from retail rates.
• How we did it:
– Set price that DG customers will receive for exports
under a long term contract
– Rates set at a level necessary to achieve
installation targets
– Customers have option of offsetting selfconsumption or buy-all sell-all
Office of the Public Advocate | State of Maine
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Principle #2: Compensation should decrease as
the price of solar decreases.
• How we did it:
– Capacity-based step downs
– Rates for new customers may adjust as needed to
meet installation targets
– Automatic adjustment mechanism allows price
increases if installations <85% of installation
targets for a given six month period.
Office of the Public Advocate | State of Maine
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Principle #3: Offer predictability to participating
customers, industry, and all ratepayers
• How we did it:
– Participating customers:
• Long term contract at specified rate
• Existing customers grandfathered for 12 years, or allowed
to opt-in to long term contract
– Solar industry:
• Capacity-based stepdowns offer predictable pricing glide
path
• 5 year program, with guaranteed installation targets
– All Ratepayers:
• Total procurement amount set in statute
• Price to be paid bounded by cap, step down mechanisms
Office of the Public Advocate | State of Maine
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Principle #4: Fairly and transparently allocate
costs and benefits across all ratepayers.
• How we did it:
– Monetize all benefits in applicable markets
(energy, capacity, RECs)
– Difference between monetized benefits and
contract price = ratepayer subsidy/benefits
• Can compare net costs to estimates of “non-monetized
value”
– Allocate these costs/benefits across all ratepayers
through stranded cost mechanism
Office of the Public Advocate | State of Maine
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Principle #5: Provide opportunities for all
customers to participate
• How we did it:
– Community solar
– Commercial and industrial program
Office of the Public Advocate | State of Maine
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Principle #6: Develop and implement policies in
a collaborative and transparent process
• How we did it:
– Introduce white paper outlining approach
– Legislative resolve directing PUC stakeholder
process
– Multi-party stakeholder process with iterative policy
development and negotiations
– Report to Legislature, followed closely by
implementing legislation
Office of the Public Advocate | State of Maine
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Takeaways
• There are ways to support solar that nearly all
stakeholders can support
– Takes time, patience, and a lot of collaboration
• Most or all of the principles can adopted in
other states, even those with different market
structures
• Setting up the right policy platform upfront
can save many headaches down the road
Office of the Public Advocate | State of Maine
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Thank you.
[email protected]
Office of the Public Advocate | State of Maine
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