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Bill > LD1936


ME LD1936

ME LD1936
An Act to Provide Greater Equity in and Reduce Costs Related to the State's Net Energy Billing Program


summary

Introduced
05/07/2025
In Committee
05/07/2025
Crossed Over
Passed
Dead

Introduced Session

132nd Legislature

Bill Summary

This bill does the following. 1. It provides that a person is prohibited from participating in the kilowatt-hour credit and tariff rate net energy billing programs after the expiration of the person's net energy billing agreement with the transmission and distribution utility for the distributed generation resource, with some exceptions. 2. It provides that a distributed generation resource that is greater than one megawatt and not more than 2 megawatts that receives a good-cause exemption from the Public Utilities Commission must reach commercial operation by December 31, 2025 to participate in the kilowatt-hour credit net energy billing program and the tariff rate net energy billing program. 3. It creates a limited exception from the kilowatt-hour credit net energy billing program limitations to allow a distributed generation resource with a nameplate capacity of one megawatt or less to participate in net energy billing if the distributed generation resource is wholly owned by the customers receiving the net energy billing credits associated with the output of the distributed generation resource. 4. It allows a distributed generation resource to be used in the kilowatt-hour credit net energy billing program if the distributed generation resource is owned by the customer and is used to serve the electric load of that customer only and 100% of the net energy billing credits associated with the distributed generation resource are allocated to the retail account of that customer. 5. It directs the commission, starting January 1, 2026, to establish by routine technical rule the compensation rates applicable to all customers participating in net energy billing with distributed generation resources owned by nonresident program owners. 6. It requires a transmission and distribution utility, if a customer with a shared financial interest in the resource terminates the customer's participation in the net energy billing arrangement, to replace that customer by enrolling a customer receiving low-income assistance under the Maine Revised Statutes, Title 35-A, section 3214, subsection 2 who is located in the same transmission and distribution utility service territory as the terminated customer. 7. Starting January 1, 2026, it establishes that the tariff rate set by the commission by rule for a customer participating in the tariff rate net energy billing program with a distributed generation resource not owned by a nonresident program owner must equal 9.5¢ and increase by 2.25% on January 1st of each subsequent year. If the tariff rate established would cause a project that has reached commercial operation by January 1, 2026 to no longer be financially viable, the owner of a distributed generation resource may petition the commission for an adjustment to the tariff rate.

AI Summary

This bill modifies Maine's Net Energy Billing (NEB) program, which allows customers to receive credits for excess energy generated by their distributed generation resources (like solar panels). The bill introduces several key changes: it prohibits customers from participating in net energy billing after their existing agreement expires, with some exceptions for small consumer-owned projects and single customer-owned on-site projects; establishes a deadline of October 1, 2025, for projects to reach commercial operation; creates a special provision for low-income customers to be automatically enrolled if another customer terminates their participation; and introduces new rules for projects owned by "nonresident program owners" (businesses based outside of Maine). Starting January 1, 2026, the bill sets a baseline tariff rate of 9.5 cents per kilowatt-hour for net energy billing, with an annual 2.25% increase. The bill also provides a mechanism for project owners to petition for rate adjustments if the new rates would make their project financially unviable. Additionally, the legislation aims to ensure fairness by requiring the Public Utilities Commission to establish compensation rates that provide nonresident program owners a reasonable opportunity to earn a fair profit while maintaining a balanced cost-benefit ratio for ratepayers.

Committee Categories

Transportation and Infrastructure

Sponsors (3)

Last Action

CARRIED OVER, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800. (on 06/25/2025)

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