Maine manufacturers push back against rising electricity bills tied to renewable power incentives

The powers that be in Augusta are finally talking about the problem they created and now expect us to trust them with getting us out of this mess. That definition of insanity comes to mind.

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One business said it may be forced to close because its power bills have jumped by thousands of dollars.

9/9/24

Stephen Singer

Press Herald

EXCERPTS

Manufacturers in Maine are pushing back against electricity costs that rose sharply this summer as a result of state policy meant to encourage the use of solar and wind power.

The Public Utilities Commission is again looking into how much of a power bill should be used to incentivize renewable energy projects. Manufacturers, policymakers, utilities and others agree that Maine must add more solar and wind energy to reach targets for reduced greenhouse gas emissions. Disagreements focus on how to apportion the cost.

The recent change in how rates are calculated has particularly angered large consumers of electricity.

Jim Lynch, co-founder of Maine Commercial Tire Inc. – a significant energy user that retreads more than 34,000 truck tires a year – said his electricity bill is up $10,00.......................................

..................Milo Chip, a paper products manufacturer that employs four workers, told the PUC its monthly bill is up by $6,000. That brings the full monthly electric bill to more than $10,000, office manager Isabelle McKenna said, adding the business may be forced to close in the near future. A hardwood and softwood pulp inventory should provide a few weeks of chipping, she said. The company has been in business for 12 years.

“It is so horrible,” she said. “It’s not sustainable.”

HOW WE GOT HERE 

State policy requires utilities to collect ratepayer money as part of the net energy billing program that provides generators with credit for renewable power they produce and send to the electric grid. Ratepayers also help fund Maine’s low-income assistance program and some storm recovery costs.................................................

..........................In July, just as some were noticing their bills climb, the PUC launched an investigation into the alternate rate designs and may order changes to “adjust for inequities or to effectuate legislative policy directives. ”

Regulators said an analysis showed that the fixed charge affected some larger rate classes “dramatically.” Low electricity users in some classes are paying much more than if billed only on the volume of electricity used and large users in some classes paying much less................................................

...............................Net energy billing rules have vexed state lawmakers and regulators for years. Gov. Janet Mills and the Legislature expanded eligibility in 2019, directing utilities to buy power from solar projects with up to 5 megawatts of capacity at fixed rates. The change led to a significant rise in community solar projects, raising questions about the cost of the subsidy........................................

Tony Buxton, a Portland lawyer who represents the Industrial Energy Consumer Group that speaks for manufacturers, said the issue is inscrutable to most electricity customers. “A typical ratepayer has no chance of understanding how to follow this,” he said.......................................

https://www.pressherald.com/2024/09/09/manufacturers-push-back-agai...

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