PUC To Consider Alternative To Current Default Service Structure, Seeks Comments

The Maine PUC said that it is considering alternatives to the current default service procurement and pricing structure at Maine Public Service (Emera Maine, Maine Public District, EM-MPD).

Though it has varied by procurement, mass market customers at Maine Public Service have been served on longer-term fixed rate Standard Offer contracts, with pricing fixed for up to 36 months. Large C&I customers have been served on long-term contracts well, but with pricing varying every 12 months.

The PUC said that it anticipates issuing, in June 2016, a request for proposals (RFP) for Standard Offer service for the residential and small non- residential, and the medium non-residential classes in the Maine Public Service territory. The current Standard Offer contracts for these classes expire at the end of October 2016

"In addition to the traditional fixed price bids with term lengths of one to three years, the Commission is considering seeking alternative structures and terms, such as a longer term bid (e.g., five years) that would be indexed to ISO-NE wholesale market prices," the PUC said

"The purpose of an alternative structure would be to tie EM-MPD standard offer service to prices in a competitive wholesale market, given the weakness of supply competition in the region. Although this situation may ultimately be addressed by interconnecting northern Maine with the ISO-NE region, actual construction and operation of a transmission interconnection may not occur, if at all, until several years into the future," the PUC said

"Before proceeding with such an alternative approach, the Commission seeks comment from interested parties on the merits of seeking longer-term proposals indexed to ISO-NE prices. In addition, the Commission seeks comment on other alternative structures that should be considered. The Commission requests that such comments be submitted in this docket by April 11, 2016," the PUC said in Docket No. 2016-00055