Dive Brief:
- Maine utility regulators voted 2-1 to cap energy efficiency spending at $22 million, significantly lower than the $60 million spending limit put in place by the state's legislature for the state's independent energy efficiency administrator.
- Critics say the decision will cost the state's consumers hundreds of millions in lost chances to lower their electricity bills.
- The Public Utilities Commission also voted to subject efficiency funding specifically for industrial customers to the new cap, which green energy advocates say will leave Efficiency Maine with very limited resources.
Dive Insight:
Maine regulators have opted to limit funding for Efficiency Maine, the independent administrator for energy efficiency programs in the state. The decision appeared to run contrary to the intent of state lawmakers, who expected funding to remain at $60 million.
“This is an outrageous decision without merit that will cost Mainers hundreds of millions of dollars,” said Dylan Voorhees, Clean Energy Director with the Natural Resources Council of Maine (NRCM). “I was shocked and appalled by how willing two Commissioners were to disregard the clear intent of the Legislature and apparently put ideology ahead of the interests of ratepayers.”
The question before the commission involved implementation of an omnibus energy bill passed by the legislature in 2014, but the decision set funding levels significantly below their past levels.
“Investment in energy efficiency has proven to lower costs for Maine ratepayers,” said Ben Tettlebaum, attorney with Conservation Law Foundation. “But what is most remarkable about today’s decision is that it is not just bad policy, it also flies in the face of clearly established Maine law.”
NRCM said the efficiency budgets developed by the Energy Maine trust to maximize consumer savings range from $32 million to $60 million per year. The group estimated the cap will cost Maine ratepayers $70 million to $265 million in missed savings each year it is applied.
