Maine PUC Opens Investigation for Disposition of Utility Long-Term Contract Output

The Maine PUC has issued a Notice of Investigation to seek proposals from Central Maine Power and Bangor Hydro-Electric to recover costs associated with several long term contracts, and dispose of the energy, capacity, and RECs from the contracts (Docket 2011-222).

The PUC has approved several contracts between the utilities and renewable energy facilities; but previously deferred consideration of the disposition of the products procured under the contracts.

Commission regulations give the PUC discretion to direct the utilities to:

A. Dispose of capacity resources, available energy, and renewable energy credits through periodic competitive auctions supervised by the Commission;

B. Use capacity resources, available energy, and renewable energy credits to meet the supply requirements of Maine ratepayers; or

C. Take other action relative to capacity resources, available energy, and renewable energy credits as determined by Commission rule or order.

The Commission's investigation includes contracts with First Wind Holdings, LLC (Rollins project) and Verso Bucksport LLC. Additionally, the PUC expects similar cost recovery questions will arise as a result of future contracts to be entered into between the utilities and Community Based Renewable Energy Pilot Program projects.

Utilities were directed to submit proposals for disposition and cost recovery by July 22. The PUC directed that the proposals "maximize value for ratepayers" from the contracts' associated products.