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Mark Your Calendar – Utility Default TOU Rates

Dockets: 2025-00176 
Category: Maine

An initial case conference in this matter is scheduled for July 9, 2025, at 1:30 PM. The following issues will be addressed at the initial case conference: 1. Rulings on petitions to intervene; and 2. Development of an initial case schedule The initial case conference will be in person in the Commission’s Simpson Room, and via Microsoft Teams. The utilities and those who seek to intervene will be sent a calendar appointment with a link to join the conference via computer or smartphone (using audio/video). 

Those unable to attend via video may dial in by phone using the following information: 

Telephone number: (207) 209-4724
Conference ID: 653 691 741#

Excerpts from the Order:

“The Commission opens this investigation to determine whether time of use rates for electric delivery and default supply service in Maine can be designed in a way that assures short-term and long-term savings to residential and small business customers while ensuring utilities have an opportunity to earn a reasonable return” 

“If so, the Commission will consider adopting an order to direct CMP and Versant to undertake to implement appropriate delivery rates and to prepare billing and metering systems for TOU standard offer rates,” 

“Further steps needed to implement TOU standard offer rates would need to occur in different dockets,” the PUC said

As reported previously, the Commission hired Exeter Associates, Inc. (Exeter) as its consultant during the inquiry. On April 24, 2025, Staff filed a report prepared by Exeter entitled Time of Use Rates for Delivery and Standard Offer Service for Maine (Exeter Report). This report concluded with 24 recommendations for the Commission to consider if it were to proceed with implementing TOU rates for delivery and standard offer service.  Reprinted from the report, are the 24 high level recommendations include:

Recommendation 1: The Commission should pursue residential TOU rates that incorporate all relevant time-varying energy costs, including wholesale energy prices, capacity costs, network service costs, and distribution system marginal costs. 

Recommendation 2: A near-term residential TOU period adopted in Maine should treat the hours of 3:00-8:00 pm on non-holiday weekdays as on-peak.

Recommendation 3: It is not necessary for the Commission to separately factor in hourly ISO-NE emissions when determining TOU periods.

Recommendation 4: Supply and distribution TOU periods should match.

Peak Periods 

Recommendation 5: The Commission should initially adopt a straightforward TOU structure consisting of one clearly defined on-peak period and one off-peak period.

Recommendation 7: In the near term, a single, year-round TOU rate design is appropriate for Maine. 

Recommendation 8: TOU peak periods should remain stable over time, with flexibility for occasional adjustments when justified by changing conditions. 

Price Differentials Recommendation 9: The Commission should establish a TOU rate differential in excess of a 2:1 ratio between on-peak and off-peak rates.

Net Energy Billing 

Recommendation 10: Net Energy Billing (NEB) customers should be eligible to participate in TOU rates. 

Recommendation 11: The Commission should adopt cost-based NEB netting approaches and conduct further studies to determine the most suitable netting strategy for Maine under TOU rates. 

Implementation Costs 

Recommendation 12: The Commission should coordinate TOU rate implementation timelines with utilities’ scheduled AMI upgrades to mitigate implementation costs. 

Recommendation 13: The Commission should adopt a revenue-neutral supply TOU rate with a cost reconciliation mechanism. 

Customer Education and Communication 

Recommendation 14: Customers should be notified at least 90 days prior to any rate changes with repeated communication before rate rollout. 

Recommendation 15: TOU rate-related communication should be coordinated between the utility and Commission.

Adverse Bill Impacts 

Recommendation 16: The Commission should conduct an additional study to determine those who will experience adverse bill impacts from TOU rates. 

Recommendation 17: The Commission should set up bill protection for customers for the first year following enrollment in a TOU rate. 

Recommendation 18: The Commission should work with the utilities to provide shadow billing on customers’ bills prior to the wide rollout of TOU rates.

Switching Recommendation 19: The Commission should require alignment of TOU enrollment across both distribution and supply services. 

Recommendation 20: The Commission should adopt a 12-month stay restriction for customers who elect to opt in or opt out of a TOU rate. 

Recommendation 21: Once the TOU rate structure is determined, the Commission should promptly move forward with the rollout of the TOU rate while maintaining an adequate lead time for customer notification. 

Recommendation 22: Widespread TOU rate deployment should be conducted in waves.

Opt-in, Opt-out, or Mandatory Rates

Recommendation 23: The Commission should adopt an opt-out TOU rate structure. 

Recommendation 24: The Commission should only require one type of bid (flat or time-differentiated) from SOS bidders. This bid should be convertible into alternative representations of the rate using pre-published adjustment factors.

Letter Opening Docket
Notice of Investigation (06/20/2025) 
2025-00176 (08/28/2024)
(Commission Initiated Investigation Of Time Of Use Rates For Delivery And Standard Offer Service For Investor-Owned Transmission And Distribution Utilities)