Dive Brief:

• Maine is once again debating energy efficiency spending, with staff of the state's Public Utilities Commission calling for Efficiency Maine Trust's (EMT) three-year plan to be cut $45 million from a proposed $216 million it plans to spend reducing energy demand.
• The proceeding follows last year's contention over the energy saving program, when regulators capped spending at $22 million rather than $60 million, as intended by the state's legislature.
• Talks kick off this week, with a pre-hearing conference scheduled for tomorrow and a settlement conference slated to begin a week later.
• Efficiency Maine Trust believes its proposed budget would net hundreds of millions in savings back to consumers, and says state law means the agency must pursue all economical efficiency.

Dive Insight:

It's deja vu, for efficiency advocates in Maine. The state, for the second year in a row, is in a debate over how much money it should be spending on energy efficiency. 

According to Maine Public Utilities Commission spokesman Harry Lanphear, staff is recommending changes to the budget in "several areas," saying they believe EMT's projected benefits are overstated. In one instance, the commission staff wants to cut subsidies for more efficient light bulbs they believe customers would simply buy anyway.

Those people would be getting a "free ride," Lanphear told MPBN News. Staff also believe the Trust's estimates of energy prices are too high, and have adjusted those assumptions as well, he said.

Advocates say they are "surprised and disappointed at this point to be honest." Sarah Gideon, who led the fight to restore funding last year, told MPBN. While the funding levels being considered would not tap all potential savings, Gideon also said the state's legislature could step in.

Last year's debate came over the legislative intent of the state's efficiency laws. Efficiency supporters were outraged by the state's literal interpretation of the law and rushed to lobby for a correction, after the PUC cut $38 million in funding.

At the time, Democrats criticized Gov. Paul LePage (R) for what they said was an attempt to expand his own power and extract concessions from a deal negotiated nearly two years ago. LePage wanted to expand his cabinet to include an energy office and obtain the power to appoint the executive director of the Efficiency Maine Trust, who is currently selected by the organization's board.

The missing word "and" in a 2013 omnibus energy bill led utility regulators to cap efficiency spending at $22 million, instead of the $60 million lawmakers say they intended. Lawmakers overrode LePage's veto of a bill they passed to correct the clerical error.