A coalition of community solar companies in Maine has filed a lawsuit against the Public Utilities Commission, seeking to halt the implementation of a new law that alters the state’s net energy billing program. This law, passed earlier this year, aims to reduce the financial burden on electricity customers arising from subsidies for solar development.
The lawsuit, initiated by a group of 11 companies, asserts that the modifications to the net energy billing program infringe upon their constitutional rights. The changes include the introduction of a monthly charge for certain community solar projects based on their size, with fees projected to range from $2,800 to $30,000. These charges are intended to cover distribution costs that would otherwise be passed on to ratepayers.
Legal Claims and Implications
The community solar companies contend that the new law would inflict “immediate and irreparable harm” on their businesses, prompting them to request a preliminary injunction before the law comes into effect on January 1, 2024. They argue that the project charge constitutes a violation of the Fifth Amendment, which protects against the government taking private property for public use without just compensation.
“The character of the government action is akin to a physical taking, because the government is essentially devaluing the electrons — themselves physical property — generated by the regulated generators,” attorneys for the companies stated in their extensive 97-page filing.
Furthermore, the plaintiffs claim that the law undermines the contracts clause of the Constitution, which prohibits laws that disrupt private groups’ ability to fulfill contractual obligations. They expressed concerns that the new fees and altered cost structure could lead to defaults on some projects.
Jeff Cramer, president of the Coalition for Community Solar Access, a trade group representing the companies, warned that the law’s implementation could deter future investments in clean energy within the state. He remarked, “When a state retroactively changes the rules on projects already operating and serving customers, it tells investors, lenders, and developers that the state cannot be trusted to provide a reliable, rational business climate for future investment.”
Projected Financial Impact
According to the Maine Office of the Public Advocate, the new law could save electricity customers approximately $1.2 billion over the next 16 years. In contrast, the existing net billing law is estimated to cost Mainers, including those who do not participate in community solar programs, over $230 million in the current year.
A spokesperson for the Public Utilities Commission confirmed that their legal team had received the lawsuit and was in the process of reviewing it. Questions regarding the case were directed to the Maine Attorney General’s Office, which could not confirm whether it would represent the commission in this matter.
The outcome of this lawsuit could have significant implications for the future of solar energy development in Maine, as community solar companies seek to protect their interests against what they perceive as detrimental legislative changes.
