|
|
|
|
|
Major Parties Propose Considering Alternative Measures To Reduce Default Service Rates & Risk Premiums, In Seeking To Shelve Consideration Of Time Of Use Rates For Default Service
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Major parties to a Maine PUC investigation into time of use rates, including whether TOU rates should be adopted for default service, have proposed shelving the investigation, with the near-term focus instead shifting to (among other things) consideration of other changes to default service to reduce customer rates
Parties to the stipulation include Maine's Office of the Public Advocate (OPA), Efficiency Maine Trust (EMT), Maine's Department of Energy Resources (DOER), and several consumer and energy efficiency representatives. Stipulating parties represent that Central Maine Power, Versant Power, and NRG Energy do not oppose the stipulation. The stipulating parties did not represent what PUC Staff's position may be on the stipulation
Stipulating parties said that both CMP and Versant may be upgrading their billing systems in the near future. A major focus of the TOU investigation has been the development of a cost/benefit analysis for implementation for TOU or other dynamic pricing, which includes consideration of the costs to modify the utilities' billing systems, as the EDCs' billing systems are not currently capable of offering time-varying rates for Standard Offer Service.
Stipulating parties said that Versant has indicated that Versant intends to replace or substantially upgrade its billing system in the 2030-32 timeframe
Stipulating parties said CMP has indicated that CMP views its currently planned 2028 migration of its billing system to a cloud platform as a, "steppingstone to full system replacement," though stipulating parties noted that CMP has no current plan for such full system replacement.
In light of potential utility billing system changes, stipulating parties are worried that any costs to implement TOU rates at this time via changes to legacy billing systems would result in "diminishing value" to customers, given the forthcoming new billing systems
As a result, stipulating parties propose to suspend the current schedule in the TOU rate investigation, and instead propose to pursue alternatives to achieve the goals sought through TOU rates
Among other things, stipulating parties propose to evaluate, "new approaches to default supply procurement," which could reduce the wholesale supplier risk premium, "unmask" the cost savings from load flexibility, and allow resulting savings to flow back to Maine ratepayers more directly
Stipulating parties also propose testing a peak time rebate program on a "targeted" basis.
Stipulating parties were not explicit as to the interaction of the peak time rebate program and default service. While a peak time rebate program would not necessarily change the listed SOS price to compare, any peak time rebate program could hypothetically be limited to certain groups of customers (i.e. SOS customers only), and the peak time rebate provided to the customer could hypothetically be shown in the "generation" portion of the bill as a line item, potentially implicating a shopping decision. Alternatively, as in other states, the peak time rebate program could be open to all distribution customers, with the rebates listed separately from the generation portion of the bill. The stipulating parties are not explicit as to customer eligibility for the peak time rebate program
Other focus areas that stipulating parties recommend, while the TOU investigation is shelved, is developing, with ISO-NE and other New England states, "improved market mechanisms to unlock additional value streams from aggregated load flexibility".
Stipulating parties recommend changes in existing delivery TOU rate structure at Versant, and also recommend expanded marketing for the existing, optional TOU delivery rate classes
Stipulating parties recommend that Efficiency Maine Trust develop and deploy a "demand response coaching platform" to, "encourage,
support and measure sustained load shifting and customer savings through
AMI data and bill impact analysis".
Docket 2025-00176
ADVERTISEMENT Copyright 2026 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
September 9, 2026
Email This Story
Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW -- Enrollment & Rate Management Director - Retail Supplier
• NEW -- Strategic Sales Channels Manager - Retail Supplier
• NEW -- Controller - Retail Provider
• NEW -- Manager, Product I - VXRetail (Retail Energy)
• Refreshed 5/27/26 -- Manager, ISO Coordination (electricity), Retail Supplier
|
|
|
|
|