Environmental and Energy Law Update
        A blog from the attorneys of Verrill

        Maine PUC Proposes Net Metering Rule Changes

        November 7, 2016

        The PUC has issued a proposed rule that would change Maine’s net metering compensation for rooftop solar (and other distributed generation). Under Maine’s current rule, customers that generate power are given a credit equal to the full retail rate of electricity.

        The proposed rule would gradually reduce the portion of a generating customer’s electric bill that the customer is able to “net” against, and, over time, require the customer to pay a higher portion of their bill, regardless of how much energy the customer generates and delivers to the grid.

        Supply vs. T&D Portion of Bill

        The proposed rule operates by distinguishing between the supply portion of a customer’s electric bill and the transmission and distribution (“T&D”) portion of the bill. The supply portion of the bill represents the charge for the actual generation of electricity. In Maine, generation is provided by competitive suppliers or through Maine’s standard offer program, through which the PUC solicits competitive bids from energy suppliers to provide default service for customers that do not choose a competitive supplier. The T&D bill is the portion that goes to the customer’s local utility—Central Maine Power, for customers in southern Maine—to cover the cost of maintaining the grid.

        Grandfathered vs. New Installations

        As expected, the PUC has proposed different rules for existing solar installations (installed before January 1, 2017) and new installations. Existing installations will continue to be compensated under Maine’s current net metering rule for 15 years. The current rule allows a customer to net against the entire portion of the customer’s electric bill.

        New installations will be allowed to net against 90% of the T&D portion of their bill in 2017, 80% in 2018, and so on until 2026 when the customer will no longer be able to net against any portion of the T&D bill.

        Ownership Options

        The proposed rule also allows for lease arrangements but limits leases to twenty years in length, after which ownership of the solar panels (or other facility) must be transferred to the lessee. The rule allows for shared ownership, with bill credits applied on the basis of ownership interest. The rule would also allow for community net metering projects, although the details of how these projects would work, or would differ from shared ownership projects, is unclear.

        Buy All, Sell All vs. Net Exports

        Several commenters have pointed out that the proposed rule’s explanation of “nettable energy” is ambiguous. There are two plausible interpretations. Under one interpretation, the proposed rule would establish what is known as a “buy all, sell all” regime in which all of the energy generated by a customer is subject to the modified netting scheme proposed by the new rule. A customer would therefore “sell” all of the electricity generated by the system and “buy” all of the electricity the customer consumed. Under the second interpretation, a customer would be allowed to consume their own self-generation first and only the energy exported to the grid would be subject to the netting formula in the new rule. There are important consequences for each method, and the PUC will need to clarify which path to take in the proposed rule.

        Lively Public Hearing

        On October 17, the PUC held a public hearing on the proposed rule. The hearing drew a large crowd, with solar-roof homeowners, solar installers, and representatives from Maine’s environmental organizations speaking against the proposed rule. Utility representatives, some business owners, and some members of the public testified in support of the proposed changes. Some commenters encouraged the PUC to defer to the Legislature which is expected to take up the issue next session after the narrow defeat of a comprehensive solar bill earlier this year.

        The PUC must now consider whether to modify the proposed rule in light of the comments it received.

        Environmental and Energy Law Update

        The Environmental and Energy Law Update blog provides an analysis and discussion of the most critical and timely legal issues and announcements in the environmental, natural resource, and energy sectors.

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Press Releases

        97 Verrill Attorneys Recognized by Best Lawyers® 2027, Including Four Named Lawyers of the Year

        AUGUSTA, Maine, BANGOR, Maine, BOSTON, Mass., PORTLAND, Maine, and WESTPORT, Conn., (August 20, 2026) – Verrill is proud to announce that 97...
        Alerts and Newsletters

        SEC’s Proposed “Reg Crypto”: What Founders Need to Know

        Startup founders and emerging-growth companies have a number of options for raising capital under the federal securities laws, including Regulation D...
        Blog

        After 45 Years, the IRS Speaks on DCAP Nondiscrimination Testing – And It’s Good News

        Employers that provide a Dependent Care Assistance Program will be pleased to learn that for the first time in 45 years, the IRS has issued guidance...
        Media Mentions

        Robert Keach Discusses Bankruptcy Auction Strategy in Law360

        Verrill attorney Robert Keach spoke with Law360 article examining the complex bankruptcy auction process that resulted in the sale of 23 summer...
        Media Mentions

        Martha Gaythwaite Featured in Portland Press Herald Coverage of Sig Sauer Trial Victory

        Verrill attorney Martha Gaythwaite was highlighted in media coverage of a federal trial in Bangor involving firearm manufacturer Sig Sauer. As...
        Media Mentions

        Law360 Quotes Robert Keach on Senate Bill Affecting Small Business Restructurings

        Verrill attorney Robert Keach was recently quoted in a Law360 article discussing federal legislation that would permanently restore the $7.5 million...
        Alerts and Newsletters

        SAFEs and Preferred Stock – Key Deal Terms Every Founder Should Know

        SAFEs Before negotiating a term sheet for preferred stock, many early-stage companies, particularly at the seed stage, first raise capital through...
        Press Releases

        Verrill Welcomes Business Restructuring and Insolvency Attorney Nimra Tariq

        BOSTON, Massachusetts – Verrill is pleased to announce that Nimra Tariq has joined the firm’s Business Restructuring and Insolvency Group as an...
        Media Mentions

        Robert Keach Provides Commentary on First Brands Restructuring in Law360

        Verrill attorney Robert Keach was quoted in the Law360 article, "First Brands' Ch. 11 Plan Revives Angst Over Admin Claims," discussing First Brands...
        Press Releases

        Verrill Welcomes Construction Attorney Cassie Dufon

        PORTLAND, Maine – Verrill is pleased to welcome Cassie Dufon to the firm’s Construction Group as an Associate, resident in the firm’s Portland...
        Press Releases

        Verrill’s Wide-Ranging Private Wealth Law Practice Recognized in 2026 Chambers and Partners High Net Worth Guide

        BANGOR and PORTLAND, Maine and BOSTON, Mass. – Verrill attorneys Kenneth P. Brier, Anya F. Endsley, Kurt E. Klebe, Mary McQuillen, Nathaniel S....
        Blog

        Update on Status of Maine Packaging EPR

        In December 2024, Verrill published a blog post, Unwrapping Maine's Gift to the Environment: A New Packaging Stewardship Program Set to Launch in...