Maine Increases Renewable Energy Goal: State commits to 80% Renewable Energy by 2030August 28, 2019
Written By: Jamil Ahmed, Operations and Sourcing Manager; Data Provided by Luke Nemes, Director, Energy Procurement & Market Intelligence at Transparent Energy
In a slew of new state legislation bolstering renewable energy generation, Maine joins the party with a new slate of bills that displays their commitment to combating climate change and reducing fossil fuel use. In late June of this year, Governor Janet Mills of Maine passed Senate Bill 457 that requires the states electric power providers to increase their renewable generations assets to 80% by 2030 and 100% by 2050. This law is set to go into effect on September 19, 2019.
Despite the positive nature of these new laws, the impact that it will have on Maine’s consumers is apparent. Maine currently has one of the highest average electricity costs in the US and new research indicates that these laws will likely increase these rates as power providers will need to pass down the costs of increased renewable generation (Renewable Portfolio Standards or “RPS”) to their customers, including residents & businesses.
What does this mean for Maine ratepayers?
Beginning on invoices after September 2019, you can expect the rate that you pay for energy to gradually rise as the law mandates incremental increases in renewable generation. These new costs are likely to ramp up between 1 and 3 dollars/MWh by 2022.
What can you do to hedge against this risk?
The law includes a grandfather clause. Ratepayers in Maine can purchase a fully fixed price with a Third Party prior to September 19, 2019 and lock in the existing RPS charges before the changes take effect for a predetermined amount of time. This is a guaranteed protection against future rate hikes.
In today’s energy markets, guaranteed savings such as this are rare. Contact Transparent Energy today to find out more about how our reverse auction process can result in the lowest price in the market and enable you to lock in your existing RPS charges.
To learn more about the Act to Reform Maine’s Renewable Portfolio Standard, call Transparent Energy at (862)210-8770.
To sign up for Transparent Energy Monthly Market Reports & success stories, fill out the following form