The state of Maine's got something going called "Net Energy Billing" . What it boils down to is a fund that comes from energy bills which is used to "attract" renewable energy firms to install community solar in the state. These fees on utility bills are called "stranded costs," and utilities use them to "purchase" electricity from "renewable energy developers."
Sound confusing and a little scammy, almost like a Nigerian prince sent you an email that started "Dearly Beloved" to pitch it?
It is.
In other words, if I'm interpreting it correctly, the additional "stranded costs" fees on consumer electrical bills fund subsidies to try to entice solar developers to move into the state. The utility company uses this "fund" to guarantee a developer a certain rate to buy their renewable energy if they agree to move into the state and set up shop. The solar developer gets 100% of the fees - utilities just pass them along.
Community solar, also known as Net Energy Billing (NEB), is designed to promote the expansion of solar production in Maine. Eligible solar projects receive credit for each kWh of electricity they generate. Utility customers can sign up with the owner of a solar project to receive a share of these credits generated by the project. The solar project can be located anywhere in the service territory of your utility (Central Maine Power or Versant Power’s Bangor Hydro District or Maine Public District).
At the end of March, Central Maine Power sent an updated filing on increased "stranded costs" rates to the Maine Public Utilities Commission due to increased costs from renewable energy suppliers.
At the time, the Maine Public Advocate cried foul, as in "enough's enough" at a projected 12% increase in the average electric bill.
...For now, that filing suggests the average Maine electricity bill will increase by about 12 percent; approximately one-third of that cost is directly tied to Net Energy Billing.
The Net Energy Billing program is funded by "stranded costs," which is the cost to buy power from renewable energy developers, such as solar companies. Electricity rate payers shoulder the stranded cost by paying it to the solar development companies. Maine's utility companies simply collect those extra fees and pass 100 percent of them along to the solar companies. CMP and Versant Power do not make any profit. This mechanism funds Maine's Net Energy Billing program.
"We've seen these increased costs coming," Maine Public Advocate Bill Harwood said. "That's a big increase for a lot of ratepayers who are living on tight budget, who are living on fixed income."
Essentially, consumers are paying a tax on renewable energy. Harwood said the Maine Office of the Public Advocate is in favor of renewable energy, including solar.
Solar developers who had set up shop had to be happy as clams as they were cleaning up, thanks to the way the Maine legislature set up the system to reimburse them.
...CMP's filing shows community solar developers are receiving higher-than-expected rates for their power. The Maine Legislature tied the price of this power to fossil fuel-derived electricity rates. The cost to generate solar power is actually far lower than what developers are paid.
"Now, the real question is, could we get that solar for something less than a $4 billion subsidy?" Harwood said. "How big of a carrot do we dangle in front of these people? And once we dangle the carrot, is it OK to say, 'On second thought, the carrot's a little bigger than it needed to be, so would you guys be able to live with a smaller carrot?'"
Even dedicated Greenies like the Public Advocate are blanching at the hosing the citizens are taking, even though he also tiptoes around coming right out and saying it.
Can no one speak bluntly in defense of the ratepayer?
Fast-forward to this month and I will bet you the state's Public Advocate has turned white as a ghost if he's had a chance to read the rate hike proposal from the state's second-largest utility, Versant Power. They've sent letters to business customers alerting them to NEB stranded cost increases that make 12% look microscopic, and the solar companies look like modern-day highwaymen.
...In practice, the net energy billing scheme turns the utilities into tax collectors for the state — and bill collectors for the solar industry.
The price hikes coming for Maine businesses vary according to the customers rate class and level of electricity usage, but a review of several of the Versant letters shared with the Maine Wire shows that one business will see the stranded cost portion of their annual electrical bill spike from $24,419 to an estimated $77,261 — a 216 percent increase.
A smaller business with far less annual power consumption is looking at an increase from $196.75 to an estimated $3,432 — an increase of 1,644 percent.
Those costs only account for the annual increases in stranded costs, which is a small slice of the total annual electrical costs.
A letter shared with @TheMaineWire shows how much Maine's solar panel tax is going to cost this business.
— Steve Robinson (@BigSteve207) June 19, 2024
A more than $50k increase from last year -- and that's not their total power bill. That's just the "stranded cost" line item, which is used to subsidized solar.
Story:… pic.twitter.com/flzKzRLiux
HOLY SOLAR FLARE
...According to the Office of the Public Advocate (OPA), which was created to advocate on behalf of rate payers, the solar subsidizes may increase electricity costs state-wide by as much as $220 million in 2025.
According to an analysis of electricity prices in paid for June 2024 by USA Today, Maine already has the sixth highest electricity costs in the country.
Still voting Democrat after this, y'all?
Republicans in the legislature have been stymied by the Democratic majority every time they've tried to kill this off. They want Mainers to know who to thank when ruinous bills start hitting..
Senator Trey Stewart rips Maine Democrats over electric rates increasing on July 1st.
— The Maine Wire (@TheMaineWire) June 19, 2024
"If you are represented by a Democrat in the legislature, send them a thank you note. It is their fault." pic.twitter.com/SFqqizpGwL
Talk about gold-plated - yikes.
...Even with such costly subsidies, solar power remains a tiny sliver of New England’s total electricity production.
According to ISO New England, the nonprofit that operates New England’s power grid, less than four percent of New England’s electricity mix came from solar Wednesday afternoon — even as the skies were clear and temperatures were in the nineties.
All the fun starts next month because no one would squelch the money grab going out of state.
The PUC just had a rate hike approved.
— Wessels for Governor 🇺🇸 (@Robert_Wessels) June 19, 2024
Reposted from Rep. Reagan Paul on FB: Electric rates are going up July 1st, AGAIN! Solar subsidies mean added costs for Maine consumers. Unfortunately, these rate hikes will be a regular occurrence as more unreliable and intermittent energy… pic.twitter.com/oTg8qhUV3q
"...Remember, Maine's decline is a choice, as is unaffordable electricity that permeates into every facet of society."
Living in the Third World without ever leaving home is increasingly a choice, too.
It's absolutely stunning how many people are willing to do so.
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