An Act To Clarify the Ability of Transmission and Distribution Utilities To Market Electricity at Retail
Maine Legislature, Session 121, LD 0330
Committee: Utilities and Energy
Sponsors: HALL
Amends: 35-A MRSA §3205, 35-A MRSA §3206-A

Legislative Document 
No. 330 
S.P.112 
In Senate, January 28, 2003 
An Act To Clarify the Ability of Transmission and Distribution 
Utilities To Market Electricity at Retail 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator HALL of Lincoln. 
Cosponsored by Representati ve BLISS of South Portland. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3205. sub-§I, as enacted by PL 1997, 
c-
316, §3, is amended to read: 
1. 
Definitions. 
As used in this section and sections 3206 
and 3206-A, unless the context otherwise indicates, the following 
terms have the following meanings. 
A. 
"Affiliated 
competitive 
provider" 
or 
"affiliated 
competitive 
electricity 
provider" 
means 
a 
competitive 
electr ici ty 
provider 
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(1) 
Created 
by 
an 
investor-owned 
transmission 
and 
distribution utility that owns more than 90% of its own 
stock; and 
(2) 
Whose 
relationship 
with 
an 
investor-owned 
transmission and distribution utility g:ualifies it as 
an affiliated interest. 
B. 
"Distribution utility" 
means 
a 
large 
investor-owned 
transmission and distribution utility that has an affiliated 
competitive provider. 
C. "Purchasing entity" means a person that purchases lOa" or 
more of the stock of a distribution utility on or after the 
effective date of this section. 
D. 
"Related entity" means: 
(1) 
Any 
person 
who 
owns, 
directly, 
indirectly 
or 
through a chain of successive ownership, 10% or more of 
the voting securities of the purchasing entity; 
(2) 
Any person 10% or more of whose voting 
are owned, 
directly or indirectly, 
by an 
interest as defined in subparagraph (1); 
securities 
affiliated 
(3) 
Any person 10% or more of whose voting securities 
are 
owned, 
directly or indirectly, 
by 
a 
purchasing 
entity; 
(4) 
Any person, or group of persons acting in concert. 
waiea 
that 
the 
commission 
may 
determine, 
after 
investigation 
and 
hearing, 
exercises 
substantial 
influence over the pOlicies and actions of a purchasing 
entity, provided that the person or group of persons 
beneficially 
owns 
Page l-LR0397(1) 
more 
than 
3°" 
f 
the 
purchasing 
entity's 
voting 
securities; et 
(5) 
Any purchasing entity of which any person defined 
in subparagraphs (1) to (4) is an affiliated interestTL 
or 
(6) 
A competitive electricity provider created by an 
investor-owned 
transmission 
and 
distribution utility 
that owns less than 90% of its own stock. 
E. 
"Voting 
securities" 
means 
any 
security 
or 
any 
proprietary or other interest presently entitling the owner 
or holder of the security to vote in the direction or 
management of the affairs of a company. 
Sec. 2. 35-A MRSA §3206-A, sub-§2, as enacted by PL 1999, c. 
398, Pt. G, §4, is amended to read: 
2. 
Prohibition; divestiture. 
If, after the effective date 
of this section, 
109,o or more of the stock of an investor-owned 
transmission and distribution utility is purchased by an entity: 
A. 
~ae Neither the purchasing entity asEl nor any related 
entity created before or after the purchase may set sell or 
offer for sale generation service to any retail consumer of 
electric energy in this State; and 
B. 
IE An affiliated competitive provider may continue to 
sell retail generation services to Maine consumers unless, 
in an adjudicatory proceeding, 
the 
commission determines 
that 
as 
the 
affiliated competitive 
provider 
obtains 
an 
unfair market advantage as a result of the purchase. 
If the 
commission makes this determination, 
the commission shall 
order 
the 
investor-owned 
transmission 
and 
distribution 
utility to divest the affiliated competitive provider. 
If 
the 
commission 
orders 
a 
divestiture 
pursuant 
to 
this 
subsection, 
the 
distribution 
utility 
must 
complete 
the 
divestiture within 12 months of the order to divest, unless the 
commission 
grants 
an 
extension. 
Upon 
application 
by 
the 
distribution utility, the commission may grant an extension for 
the purpose of permitting the utility to complete a divestiture 
that has been initiated in good faith but not finalized within 
the 12-month period. 
The commission shall oversee and approve a 
divestiture 
in 
accordance 
with 
subsection 4. 
rules 
adopted 
pursuant 
to 
Sec. 3. 35-A MRSA §3206-A, last 1J. as enacted by PL 1999, c. 
398, Pt. G, §4, is repealed. 
SUMMARY 
This bill amends current law regarding electric industry 
restructuring to clarify that marketing of electricity by an 
entity acquiring a Maine electric utility is prohibited if the 
market entity was established after the date of merger.