Maine Commission Approves New Energy Storage, EV Rate Options to Support Climate Policy

The Maine Public Utilities Commission on Sept. 27 authorised stipulations in a case examining utility rate design to encourage state climate change policy. The authorized provisions allow for the execution of a number of new optional electric rates for customers of electric vehicles, energy storage technologies and heat pumps, together with those used for space and water heating. Present rates in effect in Versant’s Bangor Hydro District and Maine Public District formed the basis for these new rates, which are optional, permitting customers to opt in and opt out.

During its 2021 session, the state legislature passed a number of laws related to utility rate designs to support state policies. One of the laws directs the commission to review alternative rate structures to support electric vehicle charging stations for nonresidential applications, including light duty vehicles, medium duty vehicles, heavy duty vehicles and transit and other fleet vehicles. Another act instructed the commission to examine and employ transmission and distribution utility rate designs that take into consideration deviation in the cost elements of electricity as the demand on the electricity system varies in aggregation with energy storage.

The commission issued a notice of inquiry in July 2021 seeking responses to certain questions raised, in addition to other rate design matters. Input from various participants examined principles of rate design, rates to promote the use of distributed generation, load reduction and the reduction of greenhouse gases and rates used in connection with desired public policy outcomes. Majority of the feedback suggested that rates intended to promote energy storage should be optional.

The new rate options will assist the rollout of clean technologies in all customer groups and lead to substantial savings for those using heat pumps and heat pump hot water heaters. Moreover, those with electric vehicles and other technologies who can benefit from off peak usage can also see savings with time of use rates.

The approved rates are expected to come into effect in the next few months, and in some instances, as early as October 2022.