ࡱ> WYV%` R*bjbj"x"x ;H@@ "F&&&8^4<-h"-------$/hk1n@- # # #@-U-&&& #-& #-&&(@) `&#v ),|k-0-),1$1@)@)N1) &a!!&@-@-%j- # # # #D> " >" STATE OF MAINE PUBLIC UTILITIES COMMISSION Docket No. 2011-78 MAINE PUBLIC UTILITIES COMMISSIONMarch 23, 2011 KEAN ENERGY, LLC LUBEC WIND POWER, LLC Request for Certification of a Community-Based Renewable Energy Project ORDERCASHMAN, Chairman; VAFIADES and LITTELL, Commissioners I. SUMMARY In this Order, the Commission certifies the 4.8 MW community wind farm under development by Lubec Wind Power, LLC, a wholly-owned subsidiary of Kean Energy, LLC, in Lubec, fb88 as a Community-Based Renewable Energy Project pursuant to the provisions of Chapter 325, (4)(B) of the Commission rules. II. BACKGROUND A. Community-Based Renewable Energy Pilot Program During the 2009 session, the Legislature enacted An Act To Establish the Community-based Renewable Energy Pilot Program (Act), P.L. 2009, ch. 329. Part A of the Act establishes a community-based renewable energy pilot program, to be administered by the Commission, to encourage the sustainable development of community-based renewable energy. 35-A M.R.S.A. 3602. In summary, the Act provides incentives, on a pilot program basis, for the development of community-based renewable projects. The projects must generate electricity from an eligible renewable resource, which includes fuel cells; tidal power; solar, wind and geothermal installations; hydroelectric generators; generators fueled by landfill gas; and biomass generators whose fuel includes anaerobic digestion of agricultural products, byproducts or wastes. These projects must be locally owned electricity generating facilities, which means that 51% or more of the facility must be owned by qualifying local owners. The facilities must not exceed 10 MW. The implementing rules (Chapter 325, 4(B)) establish a certification process that allows an owner or developer of a generating project to seek Commission certification through the submission of a petition for certification as a community-based renewable energy project. The rules contain the information that must be submitted in a petition for certification, including documentation as to whether the owners are qualifying local owners, documentation of a resolution of support passed by the local municipal legislative body and documentation of control of the site on which the project is located. Additionally, the Commission may certify a project only upon a finding that the project is reasonably likely to be in-service within three years of certification. Once qualified as a community-based renewable energy project, the facility has the option to elect one of two incentive mechanisms: 1) a long-term contract for the output of the facility with a transmission and distribution (T&D) utility; or 2) a renewable energy credit (REC) multiplier (in which the value of the REC is 150% of the amount of the produced electricity). In its petition for certification, the project must indicate which incentive mechanism it is electing. Projects electing the REC multiplier are responsible for negotiating their own transactions for energy, capacity or RECs. Certified projects of less than 1 MW that elect a long-term contract can complete a standard form contract with the T&D utility at a price per kWh that has been established by the Commission. For certified projects with generating capacity of 1 MW and larger, the Commission shall periodically conduct a competitive solicitation to select projects that will be awarded a long-term contract with the T&D utility. B. Petition for Certification On February 16, 2011, Lubec Wind Power, LLC (Lubec) filed a petition to certify a 4.8 MW, three turbine wind facility located off of Route 191, Dixie Road, Lubec, fb88 (the Project) as a Community-Based Renewable Energy Project. The Project consists of three 1.6 MW GE XLE or similar turbines located on approximately 20 acres in Lubec that will interconnect to the Bangor Hydro distribution system. Lubec Wind Power, LLC is a fb88 limited liability company that is ultimately owned by four individuals who are all fb88 residents. A company owned by two of the principals of Lubec, KEAN Project Engineering, Inc. (KEAN), has entered into an Option Agreement with the owners of the site that grants an irrevocable option to enter into a thirty-one year lease of the property for the purposes of constructing a windpower facility. The Option Agreement provides that it is freely assignable to any entity that is fully or partially (at least 25%) owned by the principals of KEAN. The petition states that the Option Agreement can be assigned by KEAN to Lubec at any time, giving Lubec control over the site. The petition states that the Project intends to select the long-term contract as the incentive mechanism. Because the Project has a nameplate capacity of greater than 1 MW, any long-term contract between Lubec and Bangor Hydro Electric will be the result of an award in connection with a competitive solicitation conducted by the Commission. III. DECISION Based on the information provided by Lubec Wind Power, LLC, we conclude that the Project satisfies the requirements of a community-based renewable energy project and that Lubec Wind Power, LLC will be eligible to submit a proposal to enter into a long-term contract for the output of the facility in response to a competitive solicitation to be conducted by the Commission. The Project is owned by Lubec Wind Power, LLC, a fb88 limited liability company, which in turn is ultimately owned by four individuals who are residents of fb88, all qualifying local owners. Lubec has demonstrated control over the proposed Project site through the option to enter into a thirty-one year lease of the site. The Project is a wind power installation, which is specifically defined as an eligible renewable resource. The nameplate capacity is less than 10MW and it is scheduled to begin commercial operations within three years of certification, during the fourth quarter of 2012. On March 16, 2011, the Town of Lubec, fb88 convened a special town meeting at which a resolution of support for the Project was unanimously approved. Accordingly, Lubec Wind Power, LLC is hereby certified as a Community-Based Renewable Energy Project pursuant to Chapter 325, 4(B) of the Commission rules. Lubec Wind Power, LLC shall provide timely notice to the Commission of the following: any significant change in the construction or commercial operation schedule; if the Project does not begin commercial operations within three years of the date of this Certification; any change in the election or utilization of the long-term contract incentive mechanism from that described in the petition filed in this proceeding; and, any material change in the ownership structure of the Project that might violate the qualifying local owner requirement and could result in the loss of Commission certification as a Community-Based Renewable Energy Project. Dated at Hallowell, fb88, this 23rd day of March, 2011. BY ORDER OF THE COMMISSION _______________________________ Karen Geraghty Administrative Director COMMISSIONERS VOTING FOR: Littell Vafiades COMMISSIONER ABSENT: Cashman NOTICE OF RIGHTS TO REVIEW OR APPEAL 5 M.R.S.A. 9061 requires the Public Utilities Commission to give each party to an adjudicatory proceeding written notice of the party's rights to review or appeal of its decision made at the conclusion of the adjudicatory proceeding. The methods of review or appeal of PUC decisions at the conclusion of an adjudicatory proceeding are as follows: 1. Reconsideration of the Commission's Order may be requested under Section 1004 of the Commission's Rules of Practice and Procedure (65-407 C.M.R.110) within 20 days of the date of the Order by filing a petition with the Commission stating the grounds upon which reconsideration is sought. 2. Appeal of a final decision of the Commission may be taken to the Law Court by filing, within 21 days of the date of the Order, a Notice of Appeal with the Administrative Director of the Commission, pursuant to 35-A M.R.S.A. 1320(1)-(4) and the fb88 Rules of Appellate Procedure. 3. Additional court review of constitutional issues or issues involving the justness or reasonableness of rates may be had by the filing of an appeal with the Law Court, pursuant to 35-A M.R.S.A. 1320(5). Note: The attachment of this Notice to a document does not indicate the Commission's view that the particular document may be subject to review or appeal. Similarly, the failure of the Commission to attach a copy of this Notice to a document does not indicate the Commission's view that the document is not subject to review or appeal.     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