Senate Republicans warn Democrats’ defeat of Net Energy Billing reform will cost ratepayers billions

AUGUSTA – In what Senate Republicans said was a clear case of choosing the solar industry over Maine residents, a majority of Democrats today defeated LD 1347 in the Maine Senate. The move will enrich the solar industry by billions over the next 20 years at the expense of Maine electricity ratepayers.

Senate Republican Leader Trey Stewart, R-Aroostook, said the bill was the best chance to finally address a longstanding problem that lawmakers have known about since 2019. Instead, he said Democrats chose to penalize ratepayers to fund their pet environmental projects.

“It’s saddening that most Senate Democrats chose to put solar special interest groups above Maine ratepayers – the very residents we’re here to represent. It’s obvious the solar industry has lined the pockets of the Democrats who voted against this bill – so well, I guess, that they value the dollars more than their constituents,” said Stewart.

By defeating LD 1347, Senate Democrats have left in place a regressive solar tax for Maine residents already struggling with electricity prices that are 165% higher than just two years ago. Maine Public Advocate William Harwood told lawmakers that as more solar projects take advantage of the ultra-lucrative subsidies – and as higher-income Mainers install solar projects of their own – lower-income ratepayers who cannot afford it are on the hook to cover the program’s cost.

According to Harwood, the estimated $220 million in annual costs related to solar subsidies and Maine’s Net Energy Billing Program will only grow over the next 20 years. That cost recovery already began July 1 after the Maine Public Utilities Commission approved a rate hike to recoup the first $135 million installment of program costs.

The amended bill was sponsored by Rep. Steve Foster, R-Dexter, and contained language that would have dramatically reined in the solar subsidy program. Although the bill cleared the House in a bipartisan 79-66 vote, the majority of Senate Democrats and their special interest groups lobbying against it couldn’t stomach the reforms contained in the bill.

Instead, Democrats supported LD 1986, which they billed as the solution but contained none of the language needed to fix the situation – that bill failed in the House.

For Sen. Matt Harrington, R-York, who is the Senate Republican Lead on the Legislature’s Energy, Utilities and Technology Committee, the refusal of Democrats to prioritize ratepayers instead of environmentalists was just the latest example of how Democrats have abandoned Maine’s people.

“I’m extremely disappointed with the outcome on this important legislation. Today, Senate Democrats chose the solar industry and environmental groups as their winners and Maine residents as their losers,” said Harrington. “Maine families and businesses have been struggling with rising electricity costs for years now and this was our last opportunity this session to provide relief.”

Stewart said California voted in April to cut its Net Energy Billing program by 75% after years of excessive subsidies finally forced the hand of lawmakers. Now, those solar companies and environmental groups have found safe harbor in Maine Democrats.

“The Democrats’ defeat of LD 1347 now leaves Maine ratepayers needlessly on the hook for billions of dollars in solar subsidies over the next 20 years – those sounds you hear are the solar companies and environmentalists laughing all the way to the bank,” Stewart said.

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