Section 648-3-5 - FUNDINGThe Triennial Plan must identify potential MACE savings and related programs that could be implemented pursuant to 35-A M.R.S.A. §10110, the costs and benefits of such programs and the basis and support for such identified costs and benefits. The trust shall conduct an evaluation of the MACE potential for electrical energy efficiency savings and beneficial electrification in the State at least once every three years.
The Trust shall propose the utility procurement order to be assessed on transmission and distribution utilities necessary to pay for the Trust's portfolio of conservation and beneficial electrification programs and administrative costs associated with implementing the conservation programs to achieve the MACE savings in the Trust's Triennial Plan.
A.Funds held in trust. All funds collected from electricity consumers pursuant to 35-A M.R.S.A. §10110 are collected under the authority and for the purposes of this section and are deemed to be held in trust for the purposes of benefiting electricity consumers.B.Budgets for procurement of MACE resources; cap on procurement amount. The Trust's Triennial Plan shall propose programs and an associated budget that is sufficient to procure MACE resources on behalf of electric utility ratepayers, except that the Trust shall not propose the inclusion in rates under this subsection of a total amount that exceeds 4% of total retail electricity and transmission and distribution sales in the State as determined by the Commission. In preparing the Triennial Plan for submission to the Commission, the Trust shall consider gross efficiency savings for the purpose of determining savings that are cost-effective, reliable and achievable and shall consider both net and gross efficiency savings for the purpose of determining the appropriateness of the amount identified by the Trust in its Triennial Plan as needed to capture all cost effective electric energy efficiency resources.C.Inclusion of procurement budgets in rates. When determining the amount of cost effective electric energy efficiency resources, including beneficial electrification, to be procured under this subsection and included in electric utility rates, the Trust shall: 1. Consider electric energy efficiency resources that are reasonably foreseeable to be acquired by the Trust using all other sources of revenue, including, but not limited to, the Regional Greenhouse Gas Initiative Trust Fund under section 10109;2. Ensure that calculations of avoided energy costs and the budget identified by the Trust in its Triennial Plan as needed to capture all cost-effective electric energy efficiency resources are reasonable, based on sound evidence and make use of best practices across the region;3. Maximize total electricity savings for all ratepayers;4. Include all beneficial electrification measures that are cost-effective and reliably reduce electricity rates over the life of the measures.D.Determining reliable reduction of electricity rates.1. In order for a cost-effective, beneficial electrification measure to be included in MACE resources, it must also be determined to reliably reduce utility electricity rates over the estimated useful life of the measure.2. The estimated useful life of a measure reflects the period of time it will operate once installed. The value for a measure's estimated useful life is determined by the Trust based on manufacturer specifications and field studies, where available, and is recorded in the Trust's Technical Reference Manual.3. The determination of whether a measure will reliably reduce utility electricity rates shall be made by subtracting the net present value of the projected change in utility costs from the net present value of the projected change in utility revenue, where these changes in revenues and costs are attributable to the operation of a measure over its estimated useful life. If the resulting value is greater than zero, it shall be found to reliably reduce utility electricity rates and be included as a component of MACE resources. The calculation shall compare the net present value of only those revenues and costs collected through transmission and distribution rates, which shall include:a) Changes in utility revenue from incremental electricity sales attributable to the measure;b) Changes in utility costs from the marginal impact on transmission and distribution system costs, which may be differentiated by time periods that influence costs and shall account for generic system-level avoidable transmission and distribution costs;c) Costs of the financial incentive offered by the Trust in promoting adoption of the measure and costs of the Trust to run the incentive program.E.Conservation Program Fund. The Trust shall establish a conservation program fund to be used solely for conservation programs.1. The Trust shall deposit the funds from the utility procurement order, net of amounts allocated to the administration fund pursuant to 35-A M.R.S.A.10103(5), into the electric conservation program fund.2. Any interest earned on funds in the program fund must be credited to the program fund.3. Funds not spent in any fiscal year remain in the program fund to be used for conservation programs. In the event funds are not expended or contracted for expenditure within 2 years of being collected from consumers, the value of those funds shall be returned to consumers.4. The Trust may apply for and receive grants from state, federal and private sources for deposit in the program fund and also may deposit in the program fund any grants or other funds received by or from any entity with which the Trust has an agreement or contract pursuant to this section if the Trust determines that receipt of those funds would be consistent with the purposes of this section. This paragraph also applies to funds received from agreements to develop geotargeted alternative resources to transmission or distribution system needs. If the Trust receives any funds pursuant to this paragraph, it shall establish a separate account within the program fund to receive the funds and shall keep those funds and any interest earned on those funds segregated from other funds in the program fund.