An Act To Revise the Funding Formula for the Public Utilities Commission and the Public Advocate
Maine Legislature, Session 121, LD 0479
Committee: Utilities and Energy
Sponsors: DAGGETT, GAGNON, HALL, FLETCHER, GOODWIN, LERMAN, O'BRIEN, RICHARDSON
Amends: 35-A MRSA §116

Legislative Document 
No. 479 
S.P.166 
In Senate, February 4, 2003 
An Act To Revise the Funding Formula for the Public Utilities 
Commission and the Public Advocate 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by President DAGGETT of Kennebec. 
Cosponsored by Representati ve COWGER of Hallowell and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: GAGNON of Kennebec, HALL of Lincoln, Representatives: FLETCHER of 
Winslow, GOODWIN of Pembroke, LERMAN of Augusta, McKEE of Wayne, O'BRIEN of 
Augusta, RICHARDSON of Skowhegan. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §116, sub-§I, as amended by PL 200L c. 136, 
§l, is further amended to read: 
1. 
Utilities subject to assessments. 
Every transmission 
and distribution, gas, 
telephone and water utility and ferry 
subject 
to 
regulation 
by 
the 
commission 
is 
subject 
to 
an 
assessment eH-J~£--~~~~~~B&&&-epe~a~iH~-~~-~-~FeaHee 
that produces 
no 
more than $4T918 TGGG 
$5,505,000 in revenues 
annually. 
~he--€effiffiJ66JeH--~~---~~--~--a&&~&&ffi~H~--te 
~FeaHee-aR-~~~~-~~~~-aHFiH~-fis€al-y~-~~-aaG-aH 
aaaitieHal-~~~-G~F1~-~J£€aJ-~--JGG~-G~T The commission 
shall assess transmission and distribution utilities at a rate 
sufficient to produce $~T~1GTGGG $3,772,000 and shall assess all 
other utilities at 
a 
rate sufficient 
to 
produce 
$lTa48 TGGG 
$1,733,000. 
~Re--eeffiffii&&ieH-~~~--1nc~~-~~-a6£e£6ffieH~--e€ 
tFaHsffiissieH-~~~~-~-~-~~1~i~i~&-te-~~~~-aaaitieHal 
$618TGGG-~~~-€is€al-~--6GGl-G6-~-aH-~i~~~~-$4G6TGGG 
aHFiH~-~~~~-yeaF-~~.---~Re-~~~-sRall-~~~-tRe 
assessffieHt--ef--all--etReF--Htilities--te--~FeaHee--aH--aaaitieHal 
$lGGTGGG-~~~-€iseal-~--6GGl-G6-~-aH-~i~~~~-$18aTGGG 
aHFiH~--€iseal--yeaF--6GG6-G~T 
The 
commission 
shall 
base 
the 
assessment for each transmission and distribution utility on the 
pro rata share of each utility's intrastate gross operating 
revenues. 
The commission shall determine the percent revenue 
assessment reg;uired from each gas, 
telephone, water and fer ry 
utility group based on the pro rata share of the intrastate gross 
operating 
revenues 
from 
each 
respective utility group. 
The 
commission shall determine the assessment for each individual 
gas, telephone and ferry utility based on the pro rata share of 
each utility's intrastate gross operating revenue pursuant to the 
percent revenue assessment determined for each respective utility 
group. 
The commission shall determine the assessment for each 
individual water utility based on the pro rata share of the 
utility's metered 
water 
sales 
ln 
thousands 
of 
gallons 
sold 
pursuant to the percent revenue assessment determined for each 
respective utility group. 
The 
commission shall determine the 
assessments annually prior to May 1st and assess each utility for 
its pro 
rata share 
for 
expenditure 
during 
the 
fiscal 
year 
beginning 
July 1st. 
Each utility shall 
pay 
the 
assessment 
charged to the utility on or before July 1st of each year. 
Any 
increase in the assessment that becomes effective subsequent to 
May 
1st 
may 
be 
billed 
on 
the 
effective 
date 
of 
the 
act 
authorizing the increase. 
A. 
The assessments charged to utilities under this section 
are just and 
reasonable operating costs 
for 
rate-making 
purposes. 
, 
B. 
For the purposes of this section, "intrastate gross 
operating revenues" means intrastate revenues derived from 
filed rates, except revenues derived from sales for resale. 
C. 
Gas 
utilities 
subject 
to 
the 
jurisdiction 
of 
the 
commission solely with respect to safety are not subject to 
any assessment. 
D. 
The commission may correct any errors in the assessments 
by means 
of 
a 
credit or debit to the following year's 
assessment rather than reassessing all utilities in the 
current year. 
E. 
The 
commission 
may 
exempt 
utilities 
intrastate 
gross 
operating 
revenues 
under 
assessments under this section. 
with 
annual 
$50,000 
from 
F. 
For water utilities that do not have a customer metering 
program, the commission shall determine water sales to be 
90% of total water production. 
Sec. 2. 35-A MRSA §116, sub-§8, as amended by PL 2001, c. 28, 
§l, is further amended to read: 
8. 
Publ.ic Advocate assessment. 
Every utility subject to 
assessment under this section is subject to an additional annual 
assessment ea-4~£-~~~~~~~r~-~F~Fa~i~-FeyeaHe6 to produce 
sufficient revenue for expenditures allocated by the Legislature 
for operating the Office of Public Advocate. 
The Public Advocate 
shall determine the percent revenue assessment required from each 
transmission and distribution, gas, 
telephone, water and ferry 
utility group based on the pro rata share of the intrastate gross 
operating 
revenues 
from 
each 
respective utility group. 
The 
Public Advocate shall base the assessment for each individual 
transmission and distribution, gas, telephone and ferry utility 
on 
the 
pro 
rata 
share 
of 
each utility's 
intrastate 
gross 
operating 
revenue 
in 
conjunction 
with 
the 
percent 
revenue 
assessment determined for each respective utility group. 
The 
Public Advocate shall base the assessment for each individual 
water utility on the pro rata share of the utility's metered 
water sales in thousands of gallons sold pursuant to the percent 
revenue assessment determined for each respective utility group. 
The revenues produced from this assessment are transferred to the 
Public Advocate Regulatory Fund and may only be used to fulfill 
the duties specified in chapter 17. 
The assessments charged to 
utilities 
under 
this 
subsection 
are 
considered 
just 
and 
reasonable operating costs for rate-making purposes. 
The Public 
Advocate shall develop a 
method of accounting for staff time 
within the Office 
of Public 
Advocate. 
All 
professional 
and 
support staff shall account for their time in such a way as to 
identify 
the 
percentage 
of 
time 
devoted 
to 
public 
utility 
regulation and the percentage of time devoted to other duties 
that may be required by law. 
A. 
The 
Public 
Advocate 
shall 
submit 
its 
budget 
recommendations 
as part of the unified current services 
budget legislation in accordance with Title 5, sections 1663 
to 1665. 
The assessments and expenditures provided in this 
section are subject to legislative approval. 
The Public 
Advocate 
shall 
make 
an 
annual 
report 
of 
its 
planned 
expendi tures for the year and on its use of funds in the 
previous year. 
The Public Advocate may also receive other 
funds as appropriated by the Legislature. 
B. 
The Public Advocate may use the revenues provided in 
accordance with this section to fund the Public Advocate and 
employees and to defray the costs incurred by the Public 
Advocate pursuant to this Title, including administrative 
expenses, general expenses, consulting fees and all other 
reasonable costs incurred to administer this Title. 
C-l. 
Except as specified in this subsection, funds that are 
not expended at the end of a fiscal year do not lapse but 
must be carried forward to be expended for the purposes 
specified in this section in succeeding fiscal years; but, 
with the exception of funds carried forward from fiscal year 
1996-97 to fiscal year 1997 -98 and with the exception of 
funds carried forward at the end of fiscal year 2000-01 and 
fiscal year 2001-02 for use in the following fiscal year, 
unexpended 
funds 
in excess of 
10% 
of 
the total 
annual 
assessment authorized in this section must, at the option of 
the Public Advocate, either be presented to the Legislature 
in 
accordance 
with 
paragraph 
A 
for 
reallocation 
and 
expenditure or used to reduce the utility assessment in the 
following fiscal year. 
In the case of funds carried forward 
from fiscal year 1996-97 to fiscal year 1997 -98 and funds 
carried forward from fiscal year 2000-01 and fiscal year 
2001-02 for use in the following fiscal year, 100% of these 
funds may be expended for the purposes specified in this 
section. 
D. 
Any utility, subject to this section, that willfully 
fails to pay the assessments in accordance with this section 
commits a civil violation for which a forfeiture of not more 
than $500 may be adjudged per day for which payment is not 
made following the due date. 
E. 
For water utilities that do not have a customer metering 
program, the Public Advocate shall determine water sales to 
be 90% of total water production. 
Sec. 3. Effective date. 
This Act takes effect January 1, 2004. 
SUMMARY 
This 
bill 
changes 
the 
method 
of 
assessment of utilities for 
funding of 
Commission and the Public Advocate's office. 
determining 
the 
Public 
the 
fee 
Utilities