Maine PUC Issues RFP for Provider of Standard Offer Green Power Adder

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December 20, 2010

The Maine PUC has issued an RFP to select a green power provider to offer a REC offset product available to Standard Offer customers of the utilities in an amount equal to 50% or 100% of the customer's usage.

The load following REC product will be available to residential and small commercial customers (e.g. commercial customers without a demand charge) at Central Maine Power, Bangor Hydro-Electric, and Maine Public Service.  

A single REC provider is to offer the program at each utility; however, while the Commission may select a single provider for the entire state, it may also designate a unique provider at each utility, depending upon the offers made in response to the RFP.

Customers will be billed for the REC product through a line item on their utility bill, and the Standard Offer supplier will continue to serve the customer's physical load.  Customer acquisition methods were not determined by the Commission's green power provider rule, and RFP respondents are to suggest methods along with their offers.

The Commission said that it "anticipates" that customers will be able to choose the green power offer through several means, including a response card included as part of a utility bill insert, a green power offer website, and marketing materials informing customers of the availability of the green power offer product.  

The rule does provide that the Commission may direct each utility to develop mechanisms allowing for customer selection of the green power product, including a check-off option on the bill or on a response card, a green power offer website, or by telephone.  Additionally, for the purpose of facilitating customer sign-up for the green power offer, the Commission may direct a utility to provide customer account numbers to the green power offer provider for those customers that have signed up for the green power offer but have been unable to provide customer account numbers to the green power offer provider.

"We also expect that customers will be able to obtain and cancel the green power offer coincident with their monthly billing cycle (i.e. no minimum stay period)," the PUC said in its rulemaking, though RFP respondents may propose restrictions on customer switching to and from the green power offer.

In evaluating RFP responses, the Commission will select proposals, "that will provide the maximum value to green power offer customers taking into account both the cost of the green power offer to customers and non-cost aspects including, but not limited to, customer sign-up ease and flexibility and the potential to maximize customer participation in the program."

Consistent with statutory provisions, the Commission will also consider the extent to which a proposal will incorporate RECs associated with "community-based renewable energy projects" as defined in 35-A M.R.S.A. § 3602(1), and whether the green power offer provider is an entity based in the state.  The Commission will also take into account supplier experience and success in providing a similar product in other states when reviewing proposals.

The PUC is seeking proposals limited to New England RECs.  In the event that the Commission determines that a green power offer comprised of RECs from resources within New England cannot be made available upon acceptable terms, it may arrange for a green offer comprised completely or partially of non-region RECs.

Initial proposals are due on or before February 15, 2011.

The RFP is not seeking proposals for a "premium" green product (such as RECs newer than a certain vintage) at this time.

The RFP is docketed as 2010-394, and the green power rule was addressed in Docket 2010-205.

 

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