Testimony In Support of LD 596

On March 10th, 2009, I testified in support of a bill I cosponsored. LD 596, "An Act to Allow Electricity Customers Who Operate Generating Faciltities To Be Paid in Cash for Excess Net Eneregy Produced," was submitted by Representative Jim Martin. The bill required transmission and distribution utility companies to compensate customers that generate electricity from renewable resources for any excess electricity generated by the customer beyond the customer's actual electricity usage. It required the compensation to be in the form of a cash payment or kilowatt-hour credits at the option of the customer. Unfortunately, the bill was reported out of the Utilities and Energy Committee "ought not to pass." Below is the testimony I offered in support of LD 596.

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Senator Hobbins, Representative Hinck and members of the Joint Standing Committee on Utilities and Energy, I am Matt Peterson, proud to represent District 92 which includes the Oxford County towns of Andover, Byron, Roxbury, Rumford, Weld and plantations of Rangeley and Sandy River plus the unorganized territories of West Central Franklin and Madrid Township. I am here to speak in support of LD 596, "An Act to Allow Electricity Customers Who Operate Generating Facilities To Be Paid in Cash for Excess Net Energy Produced."

I am certain that I do not have to point out to any members of this committee, or this entire body, our need to encourage the production of renewable energy as a means of diminishing our dependence upon foreign energy sources as well as preserving and improving our environmental quality. I am pleased to represent an area that has the potential to emerge as a major energy provider -- given our hydro resources and potential, as well as proposed wind farms, possible bio-mass facilities, and an existing gas fired power generation facility. All of these are commercial energy producers -- but we must look for incentives for smaller operators and energy producers -- including home-owners and small businesses, to become a part of the state’s energy solutions.

This bill is a common sense and simple approach that builds upon the Maine tradition and policy of net-metering that was first enabled by this body more than twenty years ago. A next important step in encouraging the growth of small scale energy production and the use of the existing electric grid for cost effective energy storage, is to convert the value of that energy produced into cash for small generators. This bill will accomplish that goal and I urge the committee to give this legislation your positive consideration. While I am sure that there are many here with greater expertise in this matter, I would be happy to answer any questions regarding this proposal.

Thank you for your time and consideration.