Maine PUC Issues Order Revoking License Involving Mega Energy of Maine

AUGUSTA, Maine, March 31 -- The Maine Public Utilities Commission issued the following order revoking license (No. 2013-00276) on March 30, 2023:

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MEGA ENERGY OF MAINE, LLC Application for License to Operate as a Competitive Electricity Provider

ORDER REVOKING LICENSE

BARTLETT, Chair; DAVIS and SCULLY, Commissioners

I. BACKGROUND/1

On June 26, 2013, the Commission granted Mega Energy of Maine, LLC (Mega Energy) a license to operate as a competitive electricity provider (CEP) furnishing supplier service to all customer classes in the service territories of Central Maine Power Company (CMP) and the Bangor Hydro District (BHD) of Versant Power pursuant to Chapter 305 of the Commission's Rules./2

On January 24, 2023, Commission Staff issued a procedural order seeking information from Mega Energy following a request from the holder of the Mega Energy's letter of credit to cancel the regulatory letter of credit, MPUC Rules, ch. 305, Sec. 2(B), and following a January 12, 2023, cryptic email from Mega Energy indicating it no longer intended to serve customers in Maine. The procedural order set a deadline of January 31, 2023, for Mega Energy to file the required information, including required annual reports of revenues from sales, id. Sec. 2(B)(3)(c), and documentation of compliance with respect to assignments of customers and any requested termination of its license, id. Sec.Sec. 2(D)(11), 4(B)(10). Mega Energy failed to submit the required information.

On February 16, 2023, following a February 2, 2023, follow-up email from Commission Staff, Commission Staff issued a procedural order seeking the required information no later than March 2, 2023. Mega Energy failed to respond by email or file the required information. The procedural order notified Mega Energy that a failure to respond could result in further Commission review pursuant to 35-A M.R.S. Sec. 3203(13A), which authorizes the Commission to investigate CEPs.

Although Mega Energy's license has authorized it to serve in the service territories of CMP and BHD, Mega Energy's 2021 annual reporting indicates it has only been serving customers in CMP's service territory. Further, by email dated March 7, 2023, CMP confirmed that Mega Energy no longer serves customers in its service territory.

On March 8, 2023, the Commission issued a Notice of Proceeding Regarding Revocation of License, providing Mega Energy with notice and an opportunity to request a hearing with respect to alleged violations of its terms of licensure and Chapter 305 of the Commission's rules. The notice provided that, if Mega Energy requested an opportunity to be heard on the issues identified in the notice in advance of the Commission deliberating the matter, then it must request a hearing by filing a written request in this docket no later than March 15, 2023. Mega Energy did not respond to the notice and did not request a hearing.

II. TERMS OF LICENSURE

The order granting Mega Energy a license to operate as a CEP provides that the license is effective on the date of the licensure order and valid until "revoked or suspended by the Commission pursuant to section 3(A)(4) of Chapter 305, or abandoned by the licensee pursuant to sections 2(D)(10) and 2(D)(11) of Chapter 305 of the Commission's Rules."/3 Section 2(D)(11) requires a CEP to provide at least 30 days written notice to the Commission, small nonresidential customers, and affected utilities in advance of any abandonment of license.

To protect the public interest, sections 2(B)(3)(c) and 2(E)(1) require CEPs to satisfy annual reporting requirements with respect to revenues from sales to residential and small non-residential customers, as well as with respect to information about customers served and products supplied.

Section 3(A)(4) of Chapter 305 authorizes the Commission to revoke a license for, among other things, a violation of any Commission order or applicable statutory or regulatory provision.

III. DISCUSSION AND ORDER

Mega Energy failed to make the filings required by the above-referenced procedural orders and provisions of Chapter 305, and therefore Mega Energy is not in compliance with its terms of licensure or Chapter 305.

For these reasons, the Commission REVOKES Mega Energy's CEP license effective on the date of this Order. MPUC Rules, ch. 305, Sec. 3(A)(4).

Dated at Hallowell, Maine, this 30th day of March, 2023.

BY ORDER OF THE COMMISSION

/s/ Harry Lanphear, Administrative Director

COMMISSIONERS VOTING FOR: Bartlett

Davis

Scully

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Footnotes:

1/ Emails and an annual report referenced in this section were provided in this docket as attachments to a March 8, 2023, Notice of Proceeding Regarding Revocation of License.

2/ This Order updates the reference to service territories to refer to Versant Power's BHD, which was previously known as Bangor Hydro Electric Company (BHE), a subsidiary of Emera, Inc. Bangor Hydro Electric Company, et. al, Request for Approval of Reorganization, Docket No. 2012-00571, Order Approving Stipulation (June 13, 2013) (authorizing merger of BHE and Maine Public Service Company); Emera Maine, et al., Request for Approval of Reorganization, Docket No. 2019-00097, Order Approving Stipulation (Part 1) (March 19, 2020) (authorizing reorganization of Emera Maine), Letter from counsel to Commission (May 14, 2020) (notifying of name change from Emera Maine to Versant Power).

3/ Section 2(D)(10) of Chapter 305 regards transfers of licenses and thus is not applicable under the instant facts.

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Original text here: https://mpuc-cms.maine.gov/CQM.Public.WebUI/Common/ViewDoc.aspx?DocRefId={952641E7-90DE-4B63-9422-99D60DC95C3D}&DocExt=pdf&DocName=abm%202013-000276%20ORDER%20revocation.pdf