Resolve, To Study Options for a State Demand Response Program

Preamble. Whereas,  there is significant value to individual consumers of electricity who participate in demand response programs that provide incentives to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized and to consumers who benefit from reduced peak electricity pricing and increased electrical grid stability; and

Whereas,  such consumer and grid benefits are best obtained through formal demand response programs designed to encourage consumer participation; and

Whereas,  the State's consumers and economy are being harmed by increased energy costs due to natural gas pipeline constraints and this harm may be reduced through participation in a state demand response program; and

Whereas,  the United States Supreme Court is currently considering whether demand response programs are within the federal jurisdiction of the Federal Energy Regulatory Commission or are reserved to state jurisdiction and the resulting uncertainty has reduced participation in existing demand response programs; and

Whereas,  the existing regional demand response program rules do not adequately address the needs of Maine electricity consumers; and

Whereas,  it is important to the State's electrical consumers and economy that the State be prepared to implement a demand response program, if necessary, for either Maine alone or in conjunction with the other New England states; now, therefore, be it

Sec. 1. Study of options for a state demand response program. Resolved: That the Efficiency Maine Trust shall, using existing resources, study options for a state demand response program that will produce electricity consumer and electrical grid benefits and that will allow and encourage participation of Maine electricity consumers in the program. In conducting its study, the trust shall consult with the Governor's Energy Office, the Public Utilities Commission, the Office of the Public Advocate and ISO-New England and shall survey other states in New England regarding their interest in demand response programs at the state or regional level and consider demand response program rules that do not unduly burden or discourage consumer participation. The trust shall solicit the involvement of transmission and distribution utilities and electricity consumers in the State and determine consumer preferences for demand response program elements and rules. The trust shall issue a draft report and accept comments from the public and other interested parties. The trust shall coordinate with the other state agencies involved in order to efficiently and effectively solicit such public comment. The trust shall submit a report of its study and conclusions, including recommended legislation, by February 1, 2016 to the Joint Standing Committee on Energy, Utilities and Technology, which may report out a bill to the Second Regular Session of the 127th Legislature.