An Act To Facilitate the Development of Cost-effective Distributed Electricity Generation in the State
Maine Legislature, Session 121, LD 0671
Committee: Utilities and Energy
Sponsors: HALL, BERRY, BLISS

Legislative Document 
No. 671 
S.P.235 
In Senate, February 14,2003 
An Act To Facilitate the Development of Cost-effective Distributed 
Electricity Generation in the State 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator HALL of Lincoln. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representatives: BERRY of Belmont, BLISS of South Portland. 
Printed on =-ycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35·A MRSA c. 31, sub·c. 6·A is enacted to read: 
SUBCHAPTER 6-A 
DISTRIBUTED GENERATION 
§3192. 
Distributed generation 
1. 
Definitions. 
As 
used in this subchapter, unless the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Distributed generator" 
means 
an electric generation 
facility: 
(1) Having a capacity of less than 5 megawatts; and 
(2) 
Whose 
output is primarily consumed 
by 
a 
local 
consumer. 
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distributed generator 
that 
is 
not 
consumed 
by 
a 
local 
consumer. 
C. 
"Net 
energy 
billing" 
means 
a 
billing 
and 
meter iIl9 
practice under which a customer is billed in a manner that 
nets over any time period the kilowatt hours consumed by a 
customer and the kilowatt hours generated by the customer's 
generating facility as if the energy flow were measured by a 
single meter capable of registering the flow of electricity 
in 2 directions. 
D. "Local consumer" means the local consumer of electricity 
generated by a distributed generator located in proximity to 
the generator, as determined by the commission by rule. 
2. 
Regulation: sales to local consumer. 
Except as provided 
in subsection 3, 
the transmission, 
distribution 
and 
sale of 
electricLty from a distributed generator is subject to applicable 
provisions of this Title. 
3. 
Regulation: 
retail 
sales 
of 
excess 
electricity. 
Notwithstanding any other provision of this Title, the retail 
sale of the excess electricity of a distributed generator in 
accordance with rules adopted by the commission pursuant to this 
subsection is not a sale to the public and does not cause the 
seller or transmitter of that electricity to 
be subject 
to 
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regulation applicable to a 
competitive electricity provider or 
transmission 
and 
distribution utility. 
The 
commission 
shall 
adopt rules governing the retail sale of excess electricity by a 
distributed generator that: 
A. Ensure the safety and reliability of the electric system; 
and 
B. Appropriately balance the goals of removing barriers to 
the development of distributed generators, maintaining just 
and reasonable transmission and distribution utility rates 
and 
fairly 
apportioning 
stranded 
costs, 
as 
defined 
in 
section 3208. 
4. Authority; sale of excess capacity to transmission and 
distribution utility. 
The 
commission 
may 
by 
rule 
require 
a 
transmission 
and 
distribution 
utility 
to 
purchase 
excess 
electricity 
from 
distributed 
generators 
if 
the 
commission 
determines that there is otherwise an insufficient market for 
that 
excess 
electricity. 
If 
the 
commission 
requires 
a 
transmission 
and 
distribution 
utility 
to 
purchase 
excess 
electricity, the commission shall require the transmission and 
distribution utility to resell that electricity in the wholesale 
market. 
Rules 
adopted pursuant to this subsection may limit 
application to distributed generators of less than a 
certain 
capacity and may require the distributed generator to compensate 
the transmission and distribution utility for its administrative 
costs. 
5. Net energy billing. 
The commission shall by rule permit 
a distributed generator to elect a net energy billing arrangement 
with a transmission and distribution utility if the distributed 
generator: 
A. Has a capacity not greater than one megawatt; 
B. Qualifies as a renewable resource, as defined in section 
3210, subsection 2; and 
C. 
Is owned by a 
local consumer who is a 
commercial or 
charitable entity whose primary place of business is located 
in this State, as determined by the commission by rule. 
6. Rules. 
The 
commission shall adopt rules 
implementing 
this section. 
Rules adopted pursuant to this section are routine 
technical rules as defined in Title 5, chapter 375, subchapter 
Sec. 2. Public Utilities Commission distributed generation report. 
The Public Utilities Commission shall continue to examine and 
address issues related to distributed generators as described in 
its report of October 2001, "Distributed Generation, Conclusions 
and 
Recommendations, 
Maine 
Public Utilities 
Commission 
Final 
Report to the Maine Legislature." 
The commission shall report to 
the Joint Standing Committee on Utilities and Energy by January 
1, 2004 on the following: 
1. The commission's progress in addressing issues related to 
the 
expansion 
of 
opportunities 
for 
distributed 
generation 
including issues relating to interconnection standards, barriers 
to 
selling 
into 
the 
wholesale 
market, 
transmission 
and 
distribution 
utility 
core 
and 
standby 
rate 
structures, 
transmission 
and 
distribution 
utility 
use 
of 
distributed 
generators 
and 
line 
extension 
policies 
affecting distributed 
generation; and 
2. 
Identification of any other remaining barriers to the 
widespread use of distributed generators in the State. 
SUMMARY 
This bill does the following: 
1. 
It establishes a regulatory structure for distributed 
generation 
designed 
to 
remove 
unnecessary 
barriers 
to 
the 
development of distributed generation in this State; 
2. 
It requires the Public Utilities Commission to establish 
rules governing the retail sale of excess electricity from 
a 
distributed generator; 
3. 
It authorizes the commission to require a transmission 
and distribution utility to purchase excess electricity from a 
distributed generator and resell it at wholesale; 
4. 
It directs the commission to allow certain distributed 
generators to elect a net energy billing arrangement; and 
5. 
It directs the commission to examine and address issues 
related to distributed generation and report back to the Joint 
Standing Committee on Utilities and Energy by January 1, 2004. 
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