Mainers have recently been seeing and hearing advertisements for alternatives to the standard offer electricity supply that most residential customers receive through their transmission and distribution (T&D) utility. I’ve been ask numerous times to explain the meaning of these new alternatives. This post is written as a guide to that very question.

In Maine, the majority of customers are served by three investor-owned transmission and distribution utilities: Central Maine Power, Bangor Hydro-Electric Company, and Maine Public Service Company. These T&D utilities maintain the transmission lines and related equipment to carry electricity throughout the grid. Prior to 2000, these same utilities also generated electricity.

In 1997, in response to federal changes that decoupled or split generation from transmission, the Maine legislature passed a law requiring that electric utilities divest their generation assets. Additionally, as of March 1, 2000, all Maine consumers had the right to purchase generation service directly from competitive electricity suppliers.

Until recently, however, there have been few options for residential customers other than the standard offer available through each of the T&D utilities. That, thankfully, is changing.

Recently a number of companies have entered the residential electricy supply market in Maine. They operate by purchasing power on the wholesale market, generally at rates slightly lower than the standard offer rate. The electricity itself is primarily generated by conventional power plants.

Another, greener option on the horizon is Maine Green Power. Maine Green Power is currently pre-enrolling customers who wish to offset their energy supply with renewable energy credits generated by 100% Maine-based renewable energy projects. This offer – of entirely renewable energy – is a first for the state, one that is certain to apply pressure on competing providers.

Maine Green Power’s definition of green power projects is, on the whole, in line with CLF policy priorities and includes solar photovoltaic systems; hydroelectric projects that meet state and local fish passage requirements; wind turbines; biomass facilities that use wood, wood waste, landfill gas or agricultural biogas; tidal power projects; geothermal projects; and fuels cells that use landfill gas or agricultural biogas.

To be clear, the power isn’t purchased directly. When power is generated through the above no- or low-emission sources, Renewable Energy Credits (RECs) are created. RECs are then sold by the green power generators to support their further development. These RECs are what Maine Green Power is purchasing and, in turn, what Maine Green Power’s customers are paying for. By doing so, customers are investing in local renewable energy projects, reducing greenhouse gas emissions, and reducing our society’s reliance on fossil fuels.

Let’s put the cost into perspective. A typical Maine household uses roughly 500 kwh of electricity per month. A 500 kwh “block” of renewable energy can be purchased from Maine Green Power for $7.50 per month (a half block of 250 kwh is available for $3.75/mo.). This charge is paid in addition to the standard offer price for electricity.

That, from my perspective, is an entirely reasonable price to pay for a brighter energy future. In fact, when you factor in the currently externalized costs of climate change and dirty energy to our public health, to our environment, and to our economies and communities, I’d say it’s more than a fair deal.

And so, to return to the original question, what exactly do these alternatives mean for the state? They mean a brighter future.

At a time when both carbon emissions and fuel prices continue to rise, Vermont is poised to reduce its reliance on fossil fuels and increase the use of renewable power – a good thing at the right time.

The legislature is considering a bill that would create a renewable portfolio standard (RPS), requiring that each electric utility acquire a percentage of its electricity from renewable sources. This is an important step in the fight against greenhouse gas emissions and climate change; CLF has testified that the bill needs to be strong and ambitious.

There’s no doubt the climate needs this bill. Levels of carbon dioxide in the atmosphere continue to shoot up, and global temperatures are rising. A warming global climate has led to increased evaporation, causing droughts and floods around the world. In his testimony before the committee considering the RPS bill, climate activist Bill McKibben described the rising worldwide occurrence of extreme weather events. Among these was Tropical Storm Irene, which devastated parts of Vermont at the end of last summer. McKibben urged the committee to act now, through measures such as an RPS, before our climate crisis gets worse.

The current version of the Vermont bill would require that by 2025 all electric utilities in Vermont get 30% of their power from renewable power plants commissioned after 2012. Whatever renewable sources are already generating power now (in 2012) would not count towards the 30% standard.

Currently Vermont only has voluntary goals for utilities to acquire a certain percentage of their power from renewable sources. A fundamental flaw of the existing program is that it allows utilities to sell renewable energy credits (RECs) from Vermont renewable projects to utilities in other states, yet still count that power as renewable in Vermont. This means that the renewable attributes of the power are counted twice. The bill currently in the legislature would correct this problem.

By enacting this bill, Vermont would not be alone. Twenty-nine other states already have an RPS, including all the other New England states, and other states as disparate as Texas and Hawaii. Their requirements vary widely. Maine has an ongoing 30% RPS; New Hampshire requires 23.8% by 2025; and Rhode Island requires 16% by 2020. Details of the requirements vary, but Vermont’s proposed program compares well with other states in the region.

Vermont needs a strong renewable standard. CLF continues to push for strong measures to tackle climate change and reduce pollution.

In an effort to clean up the Charles River—and as the result of years of CLF advocacy—residents in Bellingham, Franklin, and Milford, MA may soon be obligated to comply with a proposed EPA mandate to reduce phosphorus runoff by 65 percent. As with most important initiatives to restore our environment, implementing this program will cost money, and there are constituencies opposed.  This Milford Daily News article chronicles some of the factors at stake and how residents have reacted to the news.

What’s most exciting about the public dialogue is to see that the discussions have advanced to real thinking about HOW to finance cleanups through stormwater utilities and other fee structures for reducing polluted runoff.  In Massachusetts, polluted runoff is the number one cause of water pollution.  Conversations about how to secure dedicated funding to solve the problem have generally only happened in a few communities under enforcement orders. They had to sort out issues of what’s fair, what’s practical, and what’s most palatable to residents in order to finance the fixes.  Now we’re seeing similar discussions in more communities where new stormwater regulations are proposed. These communities can serve as a model of forward-thinking investment in the clean waters that are critical to a thriving New England.

Learn more about CLF’s work to restore and protect New England’s waterways.