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STATE OF MAINE |
Docket No. 2002-162 |
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PUBLIC UTILITIES
COMMISSION |
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April 26, 2002 |
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Public Utilities Commission Procedures for Conservation Program Planning |
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PROPOSED ORDER ESTABLISHING PROCEDURE AND SCHEDULE
fOR CONSERVATION PROGRAMS Implemented Pursuant to P.L. 2001, ch. 624 |
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WELCH, Chairman; NUGENT and DIAMOND,
Commissioners
I. SUMMARY
This Proposed
Order considers the procedure and the schedule that the Maine Public Utilities
Commission will follow to develop an electric energy conservation plan pursuant
to P.L. 2001, ch. 624. Comments on this
Proposed Order are due by May 17, 2002.
After reviewing comments we will issue a procedural order setting a
process and schedule.
II. BACKGROUND
P.L. 2001, ch. 624, (the Conservation Act)[1] enacted during the second session of the 120th Legislature, establishes terms that govern an electric energy conservation program in Maine. Section 4 of ch. 624 which enacts 35-A M.R.S.A. § 3211-A, directs the Maine Public Utilities Commission (Commission) to develop and implement electric energy conservation programs that are consistent with the goals and objectives of an overall energy conservation program strategy that the Commission must establish. The programs must be cost effective, according to a definition that the Commission also must establish. Various other statutory directives require the Commission to promulgate rules and hold public hearings.
To carry out our responsibilities under the Conservation
Act, the Commission must complete a variety of proceedings during 2002. The purpose of this Proposed Order is to
describe these proceedings, as well as a proposed process and schedule to
conclude these proceedings. We invite comment
on our proposed process and schedule.
After we review any comments, we will issue a Final Order.
III. PROCEEDINGS
We
divide our conservation-related proceedings into three types: non-adjudicatory proceedings, rulemakings,
and adjudicatory proceedings.
A. Non-adjudicatory
Proceedings
1. Objectives
and Overall Energy Strategy
Section
3211-A(2) of Title 35-A requires that the Commission establish objectives and
an overall energy strategy for conservation programs and that programs we
implement are consistent with our objectives and strategy.
2. Cost
Effectiveness
Section
3211-A(2) also requires that programs we implement be cost effective, as
defined by the Commission by rule or order.
We intend to define “cost effectiveness” by order, at the conclusion of
a non-adjudicatory proceeding.
We
propose to establish objectives and overall strategy and define cost
effectiveness in one proceeding. We
propose the following process:
Commission issues Notice of Inquiry, mid-May
presenting relevant issues and our preliminary
views on resolving them
Written comments from interested
early
June
persons
Public hearing for interested persons early June
to provide oral comments and to
answer questions by Commissioners
and Advisors
Proposed Order establishing early July
Objectives and Strategy and defining
Cost Effectiveness
Comments on Proposed Order late July
from interested persons
Commission
issues Final Order late
August
3. Conservation
Plan (including Funding Level)
The Commission must consider and develop a program plan, a list of conservation programs that are consistent with our objectives and strategy, are cost effective, and fit within the funding level we establish, and the means by which we will implement these programs. We will develop our program plan, and establish the funding level, by means of a non-adjudicatory proceeding, that necessarily must wait for us to establish our objectives and overall strategy, and define cost effectiveness. As part of each program, we also must decide the methods by which we will evaluate the program.
Section 3211-A(4) establishes guidelines that the Commission will use to determine the assessment to be imposed on transmission and distribution (T&D) utilities to fund the conservation programs implemented pursuant to the Act. The guidelines include an upper limit and a lower limit on the assessment, and allow differing assessments among T&D utilities. We must determine the appropriate assessment level for each T&D utility.
The Act does not prohibit using
funds collected from one T&D utility to implement programs in another
utility’s service territory. We must
also determine the extent to which we will disaggregate the statewide
Conservation Fund into funds targeted to the territories in which they were
collected.
We propose to establish assessment
levels and address service area targeting as part of the non-adjudicatory,
program plan proceeding. To inform our
funding decisions, we intend to hire a consultant to carry out an Economic
Potential Study to estimate the potential cost effective kWh savings in
Maine.
We
propose the following process for our initial program plan proceeding:
Hire consultant for study June
Advisory Staff engage in informal June to
input and inquiry August
Study completed August
Commission issue Notice of Inquiry, September
presenting relevant issues and our
preliminary views on resolving them
Written comments from interested early October
persons on proposed plan and funding
levels
Public hearing for interested persons early October
to give oral comments and to answer
questions posed by Commissioners
and Advisors
Commission issues Proposed late October
Conservation Program Plan
Comments on Proposed Plan early November
Commission issues Final November
Conservation Program Plan
B. Rulemaking
1. Define
by rule low-income residential customers and small business consumers
Section 3211-A (2)(B) requires that the Commission define “low-income residential consumers” and “small business consumers” by rule.
2. Adopt
rule establishing procedures governing selection of service providers
Section 3211-A (3)(C) exempts the Commission from rules adopted by the State Purchasing Agent when selecting service providers to implement conservation programs. Instead, the Commission will adopt its own rule to govern the solicitation process.
The Commission plans on conducting one rulemaking proceeding for both of these matters. We believe that the rulemaking can be conducted concurrently with the non-adjudicatory proceedings described earlier. We propose the following process:
Commission
issues Notice of Inquiry, May
presenting
relevant issues and our preliminary
views
on resolving them
Written
comments from interested early June
persons
Public hearing for interested persons early June
to provide oral comments and to
answer questions by Commissioners
and Advisors
Commission
consultation with State June
Purchasing
Agent
Begin formal rulemaking June
Commission adopts final rule late
August
1. Review
and approve employee transition benefit plan
Section 6 of the Act allows T&D utilities to establish transition benefit plans for its conservation-related employees. Such a plan must be filed with the Commission within 120 days of the effective date of the Act. The Commission must review each plan, and if the Commission finds it reasonable, the Commission must approve the plan. If any employee transition plans are filed, the Commission will conduct the review of the plans as adjudicatory proceedings. We will identify issues and schedule for any such proceedings in an initial case conference.
IV. OTHER DECISIONS
The Commission also must perform various administrative tasks to implement the Act. The Commission is directed to:
1. Secure sufficient technical and advisory expertise by
a. contracting with other entities;
b. forming an advisory group; or
c. any other reasonable means.
2. Coordinate its efforts with other State
agencies with energy-related responsibilities.
3. Monitor conservation planning and
program development in the region and the country.
4. Participate in region-wide coordination
of programs if the Commission finds such participation sufficiently beneficial.
5. Establish the conservation program fund
and the conservation administrative fund, and assess T&D utilities to
collect funds to pay for programs and administrative costs.
We invite interested persons to comment on the most effective means of carrying out these directives.
V. INDUSTRY AND STAKEHOLDER INPUT
Notwithstanding the Act’s requirement that the Commission secure technical and advisory expertise as discussed earlier, there may be other avenues by which the Commission may obtain information relevant to the development of the statewide conservation plan. We invite interested persons to comment on the most effective and efficient means by which we may obtain useful information, both initially and on an ongoing basis.
VI. PROCEDURE FOR REACHING DECISIONS IN FINAL
ORDER
The Commission issues this Proposed Order to obtain
comments from interested persons regarding the procedures by which we will
comply with P.L. 2001, ch. 624 by developing a statewide electric energy
conservation plan. Interested persons
should submit comments to the Commission’s Administrative Director, 242 State
St., Augusta, Maine 04333, no later than May 17, 2002.
The Commission will consider the written comments and
will issue a comprehensive procedural order that sets the process and schedule
we will follow to develop our electric energy conservation plan. That process and schedule will, of course,
be dynamic.
The Commission’s Administrative Division will maintain a
service list for this docket. Persons
on the service list will receive all documents issued by the Commission or the
Presiding Officer. Any person who
wishes to be added to the service list for this docket should file a letter
with the Commission’s Administrative Director, 242 State St., Augusta, Maine
04333, asking to be added to the service list.
The petition should refer to Docket No. 2002-162. This Order shall be sent to all T&D
utilities in Maine and to all persons the Commission has identified as
participating in the State Planning Office information sessions during its
two-year planning process.
Dated at Augusta, Maine, this 26th day of
April, 2002.
BY ORDER OF THE COMMISSION
_______________________________
Dennis L. Keschl
Administrative Director
COMMISSIONERS VOTING FOR: Welch
Diamond
COMMISSIONER ABSENT: Nugent
THIS DOCUMENT HAS BEEN DESIGNATED FOR PUBLICATION