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State Energy Efficiency Policy Database

Maine

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Residential Energy Use Disclosure: A Review of Existing Policies
(Research Report - 4/22/2013)
A National Survey of State Policies and Practices for the Evaluation of Ratepayer-Funded Energy Efficiency Programs
(Research Report - 2/16/2012)
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Maine

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Maine Utility Policies

Summary
Alternative Business Models
Customer Energy Efficiency Programs
Reward Structures for Successful Energy Efficiency Programs
Energy Efficiency Program Funding
Energy Efficiency as a Resource
Energy Efficiency Resource Standards
Evaluation, Measurement & Verification

Summary

In 2002, Maine established a state-wide public benefits energy efficiency program in conjunction with industry restructuring. This program, Efficiency Maine, was a division of the Maine Public Utilities Commission (MPUC). Efficiency Maine administered a portfolio of energy efficiency programs available to all electric utility customers in Maine, whether privately or publicly owned. Efficiency Maine also administered low-income programs.

In 2009, the Efficiency Maine Trust replaced Efficiency Maine and a related program, the Energy and Carbon Savings Trust. An Act Regarding Maine's Energy Future, Public Law 372, was signed by the Governor in June 2009. It set up the Efficiency Maine Trust, an independent entity which -- as of July 2010 – creates, coordinates and implements energy efficiency and alternative energy programs.  

The purposes of the Trust include consolidating the funds for Maine's consumer efficiency programs for all fuel types; integrating delivery of electric and thermal efficiency measures to consumers; acquiring energy (efficiency and alternative energy) at lower cost than traditional energy supply; and helping to transform the energy market in Maine by providing consumers with more efficient, affordable products and energy services.

To promote “best practices” of energy program administration, the Efficiency Maine programs were moved to an independent trust with the aim of maximizing the effective and efficient use of funds, insulating the program management from conflicts of interest and from political agendas, and encouraging faster responsiveness to customer needs and changes in the marketplace.

The Legislature directed the MPUC to review and subsequently approve or deny the Efficiency Maine Trust’s Triennial Plans. The first Triennial Plan, from 2011-2013, was approved on June 24, 2010.  The plan was estimated to cost a total of $188 million, save over $800 million over three years, and meet 6.6 percent of the state's 2020 target for energy savings for all fuels.

A significant portion of the Trust's funds derived from Maine's electricity customers, through the System Benefit Change (SBC) and Regional Greenhouse Gas Initiative (RGGI), and were employed to help lower electricity costs. In aggregate, these electric programs avoided 1.67 billion kWh of electric consumption and lowered electric costs by more than $127 million.  Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

However, regulators have taken action to render Maine's energy savings targets ineffective; while there is an EERS in place, FY2013 state budget allocations fall approximately $30 million short of what Efficiency Maine projects is needed to meet savings targets established by state statute.  

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October 9, 2012

Customer Energy Efficiency Programs

All electric utility customers—both of competitive suppliers and publicly-owned companies—are eligible to receive services through the statewide programs administered by Efficiency Maine Trust. All utilities contribute funding to the programs via charges on customer bills.

Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.

Natural gas programs serve commercial, industrial, and residential customers, including low-income residential customers.  They are administered by Unitil, doing business as Northern Utilities, Inc. State statute requires each natural gas utility that serves 5,000 or more residential consumers to offer natural gas efficiency programs.

Though large industrial customers that take transmission and sub-transmission service do not pay into Maine's cost-recovery mechanism (CRM) programming, federal stimulus funds and collected money from the Regional Greenhouse Gas Initiative have allowed Efficiency Maine to offer energy efficiency programming to the state's largest industrial customers.  However, the customers still do not pay into the CRM.  The Efficiency Maine incentives and custom grant programs are now used by large industrial customers and when the additional non-CRM funding is exhausted the customers will no longer be able to use the efficiency programs.  More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.

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March 28, 2013

Energy Efficiency Program Funding

Maine's public benefits fund for energy efficiency was authorized originally in 1997 by the state's electric-industry restructuring legislation. All of the funds in Efficiency Maine were transferred to Efficiency Maine Trust July 1, 2010.

By statute, at least 20% of funds must support energy programs for low-income residents, and at least 20% of funds must support energy programs for small business customers. The PUC assesses utilities to collect funds for energy programs and administrative costs. The fixed amount of the assessment is 0.145 cents per kilowatt-hour (1.45 mills/kWh).  There is no expiration date for the fund. In general, Efficiency Maine supports improvements in lighting efficiency, reductions in peak demand, high-performance buildings, appliance replacements for low-income residents, energy training and certification, and public education.  The fund collected approximately $12.4 million in FY2010 and approximately $12.9 million in FY2011 from assessments on the utilities. In addition, Efficiency Maine Trust manages money from the Regional Green House Gas Initiative and grants, such as those received from the Federal government's American Recovery Reinvestment Act (ARRA) in 2010. In FY2011, the fund collected approximately $64 M from all sources.

The function of the Triennial Plan is to identify program initiatives, allocate budgets, and establish metrics by which to judge program effectiveness and efficiency. The Plan governs various revenue streams that come into the Trust:

•         System Benefit Charges (electric and natural gas) -- $13,730,391 in FY 11

•         Regional Greenhouse Gas Initiative (RGGI) -- $6.336.339 in FY 11

•         Renewable Resources Fund -- $435,631 in FY 11

•         Federal Funds (e.g., ARRA, Appliance Rebate, EECBG, Better Buildings, SEP) -- $41,117,343 in FY 11

•         Forward Capacity Market -- $2,234,609 in FY 11

•         Other (e.g., state grants, interest, carry-forward funds)

Energy efficiency expenditures for each utility (including the low-income programs) equal 1.5 mils/kWh (0.15 cents/kWh - see Docket No. 2002 - 162). 

The funds for natural gas conservation programs are collected through a rate surcharge. Funding levels are set by statute at no less than 3% of each gas utility’s delivery revenues, as defined by PUC rule.

Reported budgets for energy efficiency programs for 2011 are in the State Spending and Savings Tables.

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March 28, 2013

Energy Efficiency Resource Standards

The Maine Public Utilities Commission (MPUC) approved the Triennial Plan of the Efficiency Maine Trust, which develops, plans, coordinates, and implements energy efficiency programs in the state. In the plan, the Trust commits to annual energy savings goals in FY2011 of around 1%, ramping up to 1.4% in FY2013. The plan also includes savings targets for other fuels.

The 10- and 20-year targets established by statute are far-reaching and were incorporated into the strategy and budgets of the Triennial Plan.  Targets include: capturing all cost-effective energy efficiency (both electricity and natural gas); reducing electricity and natural gas consumption 30 percent within a decade; reducing oil heating use 20 percent in the same timeframe; and weatherization of 100 percent of homes and 50 percent of businesses by 2030.

The energy savings due to the current Triennial Plan are projected to save consumers nearly $840 million, add $1 billion to Gross State Product, support more than 12,000 net "job-years" of employment, leverage $281 million in private investment, and lower CO2 emissions by 300,000 tons annually by 2013.

However, regulators have taken action to render Maine's energy savings targets ineffective; while there is an EERS in place, FY2013 state budget allocations fall approximately $30 million short of what Efficiency Maine projects is needed to meet savings targets established by state statute.

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March 28, 2013

Alternative Business Models

Maine's efficiency programs are implemented by a government agency. There are statutory provisions allowing decoupling and incentives, but they are not currently used.   35-A MRSA section 3195, subsection 3195 (1) deals with rate-adjustment mechanisms and subsection 3195 (1) (A) authorizes the MPUC to adopt a decoupling mechanism.


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July 28, 2011

Reward Structures for Successful Energy Efficiency Programs

Maine's efficiency programs are implemented by a government agency. There are statutory provisions allowing decoupling and incentives, but they are not currently used.   35-A MRSA section 3195, subsection 3195 (1) deals with rate-adjustment mechanisms and subsection 3195 (1) (A) authorizes the MPUC to adopt a decoupling mechanism.


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July 28, 2011

Energy Efficiency as a Resource

Maine has had a loading order that requires utilities to use energy efficiency before any other traditional resource (MRS 3210-C (4)).  In March 2010, the Governor signed Public Law Chapter 518, An Act To Enhance Maine's Clean Energy Opportunities. It goes beyond previous policy to set the goal for the Efficiency Maine Trust as “capturing all cost-effective energy efficiency resources available for electric and natural gas utility ratepayers”.


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September 16, 2010

Evaluation, Measurement & Verification

The evaluation of ratepayer-funded energy efficiency programs in Maine relies on legislative mandates (Title 35a Section 10104 subsection 10). Evaluations are administered by the Efficiency Maine Trust. Requirements for these evaluations in Maine are articulated in Code of Maine Rules 65-407, Ch. 380 transferred to Code of Maine Rules 95-648, Ch. 380. Statewide evaluations are conducted. Maine relies on the Total Resource Cost (TRC) test and considers it to be its primary cost-effectiveness test, but the rules for benefit-cost tests are not specified. These benefit-cost tests are required for overall portfolio, total program, customer project, and individual measure level screening, with exceptions for low-income programs, pilots, and new technologies. The level at which benefit-cost testing is applied depends on the program.

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March 27, 2013