FIEC Advocates for Lower Regulatory Costs

FIEC is required to provide 30% of its energy from Class II renewable sources. Fox Islands Wind is a Class I resource and, therefore, does not count towards FIEC’s renewable energy quota. FIEC purchases Class II renewable energy credits (RECs) to meet its state renewable energy portfolio obligation.

Over the past three years, FIEC’s compliance cost increased from an average of $1.00/REC ($3,525 a year) to $11.50/REC ($40,250/year). The REC cost is included in FIEC’s energy price, driving up the cost of energy for FIEC’s customers.

This past spring, the Maine Legislature passed LD 399, which created an alternative compliance payment (ACP) for Class II RECs. Instead of purchasing RECs on the market, FIEC can make an ACP to Maine’s low-income program. FIEC advocates for a historical rate of $1.00/REC ACP to lower energy costs for its ratepayers.