|
|
|
|
|
Constellation: PUC Should Consider Allowing Enrollment Of Larger C&I Customers Onto Municipal Aggregation, Proposes Consideration Of Large C&I CCA Minimum Stay
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
In implementing Maine's new law authorizing opt-out municipal electricity aggregation, Constellation NewEnergy, Inc. (“CNE”) and Calpine Community Energy (“CCE”) (collectively,
“Constellation”) have recommended that the PUC should "consider" expanding customer eligibility for community choice aggregation (CCA) to "larger" commercial and industrial customers and municipal accounts
that are not currently served under a competitive retail supply contract
Maine statute specifically defines a CCA as the aggregation (by a municipality or tribe) of "residential
customers and small commercial electricity customers," though such customer classes are not defined in the CCA law
Constellation was not explicit as to the size of "larger" C&I customers to whom CCA eligibility would be expanded
Constellation was not explicit as to whether such expansion of CCA eligibility to larger C&I customers would include the use of opt-out CCA enrollment for larger C&I customers (though ECM observes that the condition that the larger C&I customers not be shopping as a condition of CCA eligibility suggests opt-out enrollment)
Constellation stated in comments to the Maine PUC that, "Including these [non-shopping larger C&I] accounts would
expand the aggregation’s purchasing power and could benefit both participating customers and the
CCA program’s pricing competitiveness."
Constellation also noted that, "However, extending eligibility to larger, more
sophisticated customers introduces the risk of market-timing behavior -- for example, larger C&I
customers on demand-based rate classes may strategically move between aggregation service,
standard offer, and third-party competitive supply to exploit short-term pricing differentials,
potentially leaving the Program Supplier holding out-of-the-money hedges for a significant portion
of the aggregation load."
In light of such concerns, Constellation notably proposed a minimum stay for large C&I customers in CCAs
"To mitigate this risk, the Commission should consider requiring a
minimum participation period (e.g., 12 months) for any such customers enrolling in a CCA
program, ensuring program stability while preserving customer choice," Constellation said
Purchase Of Receivables (POR)
In separate comments in the Maine PUC CCA proceeding,, the Retail Energy Supply Association recommended adoption and implementation of a purchase of receivables (POR) program
RESA was not explicit as to whether POR should apply to only CCAs, or to all retail suppliers
Maine's CCA law allows a CCA to exclude a customer from a CCA, "based on the customer's
utility payment history"
RESA said that introduction of POR, "would obviate the need to exclude customers with poor payment histories from participating in CCA programs."
RESA said that, without POR, CCA prices will need to reflect risk premiums from customer non-payment risk, especially since, under Maine's current UCB process, any past due charges for T&D service are paid before any past due supplier charges, and then current charges for T&D service are paid before any current supplier charges
RESA cited the CCA experience in New Hampshire, in which CCAs were authorized in 2019 but did not see any appreciable implementation until POR was authorized years later
"To facilitate widespread adoption of CCAs, RESA recommends that Maine take the necessary steps to authorize and adopt POR," RESA said
In separate comments, Constellation included language suggesting that a POR framework was "required" under § 3219(6), but it was not clear to what mandate (if any) Constellation was citing.
Opt-out Period
Constellation proposed a 30-day minimum notice period for opt-outs, exclusive of mailing time
RESA noted that CCA rules in other New England states use a 30-day opt-out period
RESA further noted that, "because customers will not be switched to the municipal aggregation until the meter read date that follows the conclusion of the opt-out period, and customers have different meter read dates, only a fraction of the customers will be enrolled in the aggregation on the actual date that the opt-out period concludes and some will not be enrolled until nearly a month after the opt-out period concludes."
"Thus, RESA would also support a shorter opt-out period (e.g., 21 days)," RESA said
Central Maine Power recommended that the opt-out notice be sent two months prior to the CCA aggregator sending an Electronic Data Interchange (EDI) enrollment
However, CMP also proposed that customers electing to opt out of the CCA shall be required to do so at least two weeks prior to the CCA program start date
In contrast, the Maine Office of Public Advocate proposed a 60-day opt-out period, with OPA stating, "If the customer opts out any time before the effective date of the plan, they should not be enrolled."
CCAs and Impacts to Default Service
Constellation said that the PUC should require advance notification of CCAs to the utility, "staggering program implementation
for large aggregations (if necessary)".
However, Constellation said that such coordination should not require CCA programs to align implementation dates
with specific Standard Offer procurement cycles.
Constellation did state that, "municipalities should provide the
Commission and other relevant stakeholders with sufficient advance notice of planned program
launches, particularly where customer enrollment is expected to occur prior to the next standard
offer procurement cycle. This approach will support procurement planning and load forecasting
while preserving municipal flexibility to launch programs when they best serve community needs."
In addition to notice of CCA implementation, RESA said that, for CCAs that are expected to have a "material" impact on default service load, the PUC could, as part of the PUC's decision approving an aggregation, require the municipality to coordinate timing of opt-out notices and customer enrollments in the CCA with default service solicitations.
RESA also said that, to prevent gaming, the PUC could restrict any community that has suspended or terminated a CCA program from restarting the program for a specified period of
time, and could require any community that has terminated a CCA program to file a new CCA plan for Commission approval after the stay-out period has expired
OPA cited New Hampshire's requirement for notice to the utilities of CCA implementation, but OPA noted that while such requirements may work in New Hampshire's strict semi-annual default service procurement cycle, the Maine PUC has recently expanded its annual default service procurements to occur over three bid days which are months apart
"The OPA has strong concerns about how to coordinate the timing of CCA notice requirements with the Commission’s current 12-month full requirements standard offer procurement approach. In particular, where the Commission has shifted its approach this year, opting to conduct standard offer procurements for a percentage of load on three separate bid days for the full requirements of the residential and small non-residential class, with one of the bid days occurring more than five months and the others likely more than 60 days prior to the January 1 service commencement date. With this procurement approach, there is no obvious time frame that would allow for CCA notifications to be appropriately taken into account by the standard offer bidders in their load forecast analysis. The uncertainly related to CCA entrances may further add to the risk premiums embedded in standard offer provider bids," OPA said
OPA urged the PUC to conduct an economic analysis of the extent of this SOS risk, "and to decline to allow any CCA plan approach that would materially adversely impact standard offer rates."
Generally, the Acadia Center, Conservation Law
Foundation, Maine Climate Action NOW, Maine Conservation Voters, Maine Youth for Climate
Action, and Natural Resources Council of Maine (Acadia et al.) said that a CCA program should not commence service, "during the period in which the
Commission is soliciting and evaluating final standard-offer bids for the affected
customer class unless the CCA load has already been reflected in the load data
provided to prospective standard-offer suppliers."
However, Acadia et al. said that, for CCAs with small loads, such limitation, described below, should not apply
Acadia et al. further said, "The Commission
should consider establishing a quantitative threshold for CCA program aggregate
load below which the coordination requirements would not apply because
aggregate load below the threshold would, by definition, be immaterial."
For CCAs with material load, Acadia et al. said that, "The Commission
should therefore establish a CCA implementation cutoff date tied to each
standard-offer procurement. For example, a municipality intending to commence
CCA service on January 1 should be required to receive Commission approval,
complete its supply procurement, and provide the Commission and the applicable
T&D utility with a reliable estimate of departing load (i.e. the aggregate load of
the CCA’s participating customers) before the Commission issues or advances its
standard-offer RFP for the same January 1 service period".
Consumer Protection For CCA Customers
Central Maine Power broadly said that "the same consumer protection requirements" applicable to customers of retail electric suppliers should be used for CCA customers
OPA supports applying to CCAs, "the basic consumer protection provisions applicable to CEPs [retail suppliers," in Chapter 305 of the PUC's rules
OPA also sought that CCA disclosures to customers (such as the opt-out notice) must include a comparison to default service rates
OPA further said that any CCA rate change should require a notice to customers, with such notice including a comparison to SOS rates
Central Maine Power said of customers seeking to join a CCA after launch, "CMP proposes that customers seeking to take service of the community choice aggregation project after the start of the program should follow the same process as customers who enroll with a Competitive Electricity Provider (CEP) and the aggregator should also follow the same rules currently in place for a CEP [retail supplier]."
Treatment Of New Delivery Service Customers
The Post Road Foundation said that new delivery service customers, "should automatically be enrolled in their municipality’s CCA immediately upon establishing an electricity account."
The Post Road Foundation is 501(c)(3) nonprofit organization that, "helps communities make broadband and broadband-enabled energy applications available to all."
Citation To New York DPS Staff Recommendation To End Opt-Out CCAs
Competitive Energy Services, LLC filed comments with the Maine PUC stating, "CES is concerned with the implementation of CCAs in Maine. The PUC should carefully scrutinize the cost ramifications that CCAs could have on both participating residential and small commercial ratepayers and Maine’s remaining standard offer customers, and whether CCAs will actually support the development of new clean energy projects that offer true additionality".
Competitive Energy Services, LLC stated in the comments that, "In other Northeast states, we have seen CCAs create room for misinformation regarding clean energy purchasing and supply, predatory marketing practices among certain suppliers and brokers, and confusion among end users. In most instances, we have not seen CCAs accelerate clean energy adoption above and beyond progress delivered by existing Renewable Portfolio Standard ('RPS') and Clean Energy Standard compliance obligations and state-sponsored procurements of new clean energy projects."
Competitive Energy Services, LLC cited a recent recommendation from Staff of the New York Dept. of Public Service, in which DPS Staff has recommended terminating authorization for opt-out CCAs in New York, with DPS Staff citing in a report filed with the NY PSC, "The CCA program has not achieved its objective of delivering cost savings to participating customers and has, in many cases, resulted in higher costs relative to utility default supply service. The program does not demonstrate measurable contributions to the State’s clean energy goals beyond those achieved through existing policies and programs."
See background on the DPS Staff report here
Maine PUC Docket 2026-00210
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
Retail Suppliers Seek Introduction Of Purchase Of Receivables
Consultant Cites NY DPS Staff's Recommendation To End Opt-Out Aggregation, As New State Addresses CCA Implementation
September 18, 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
|
|
|
|
|