- within Media, Telecoms, IT and Entertainment topic(s)
As we previously reported, Maine recently enacted changes to its Net Energy Billing (“NEB”) program. Those changes, in part, reduce compensation for existing commercial and industrial NEB program participants and implement a new monthly fee (referred to as a “monthly net energy billing project charge”) for certain NEB program participants, including already-built community solar projects. Changes to the NEB program are set to go into effect on January 1, 2026.
Several dozen community solar companies filed suit last week in the U.S. District Court District of Maine against the Maine Public Utilities Commission (the “MPUC”), alleging that changes to the NEB program (i) constitute an unconstitutional taking in violation of the Fifth Amendment, and (ii) violate the Contract Clause by substantially impairing the plaintiffs' contractual relationships. The plaintiffs ask the court to permanently enjoin the MPUC from assessing or enforcing the monthly net energy billing project charge and certain other changes to the NEB program.
The plaintiffs also moved for a preliminary injunction to enjoin enforcement of the monthly net energy billing project charge, arguing that certain plaintiffs will suffer irreparable harm if the court does not grant the motion. The plaintiffs argue that if the court does not enjoin the payment obligation during the pendency of the suit and the plaintiffs ultimately prevail, the plaintiffs will have no means of recouping amounts paid prior to a final judgment.
Earlier today, the MPUC held special deliberations to discuss aspects of this suit. Specifically, Commissioners noted that they are being represented by the state's Attorney General and that they have been advised to delay taking any enforcement actions under the modified NEB statute from the period of January 1 to March 2, 2026, while the court evaluates the plaintiffs' motion for preliminary injunction. MPUC Chair Bartlett noted that this delay would not change any of the obligations of the parties – notably, the obligation to pay the monthly net energy billing project charge – but rather, simply delays any enforcement that the MPUC might take if a party did not comply with the NEB statute. Bartlett further noted that if the plaintiffs fail on their bid for a preliminary injunction, the MPUC will seek full back payment of the monthly net energy billing project charge to January 1, 2026. Commissioner Scully noted that the choice to delay enforcement does not represent an endorsement of the plaintiffs' arguments. All three commissioners voted to implement the enforcement delay.
In sum, projects are still responsible for complying with changes to the NEB program, including the monthly net energy billing project charge, that go into effect on January 1, 2026. NEB participants can be certain, however, that the MPUC will not seek enforcement actions related to those charges until the court rules on the plaintiffs' motion for preliminary injunction, potentially as late as March 2, 2026.
We are available to advise companies considering their options with respect to changes to Maine's NEB program, including understanding what the pending suit and the enforcement delay mean for them.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
