An Act To Encourage Energy Efficiency and Security
Maine Legislature, Session 121, LD 0352
Committee: Utilities and Energy
Sponsors: HALL, BLISS, GOODWIN
Amends: 35-A MRSA §3211-A

Legislative Document 
No. 352 
S.P.128 
In Senate, January 30, 2003 
An Act To Encourage Energy Efficiency and Security 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator HALL of Lincoln. 
Cosponsored by Representati ve BERRY of Belmont and 
Representatives: BLISS of South Portland, GOODWIN of Pembroke. 
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 §3152, sub·§I, "A and C, as 
1999, c. 
398, Pt. 
A, 
§57 and affected by §§104 
further amended to read: 
amended by PL 
and 105, are 
A. 
Require 
the 
commission 
to 
relate 
transmission 
and 
distribution rates more closely to the costs of providing 
transmission and distribution service; aBa 
c. 
Require 
the 
commission 
to 
consider 
the 
ability of 
low-income residential customers to pay in full for electric 
services 
as 
transmission 
and 
distribution 
rates 
are 
redesigned consistent with these policiesT: and 
Sec. 2. 35·A MRSA §3152, sub·§I, ~D is enacted to read: 
D. 
Require the commission to use energy efficiency criteria 
in setting transmission and distribution utility rates. 
Sec. 3. 35·A MRS A §3157 is enacted to read: 
§3157. 
Energy efficiency criteria 
1. Criteria. 
In addition to the other requirements of this 
subchapter, 
the 
commission, 
in 
determining 
transmission 
and 
distribution utility rates or in establishing any rate-adjustment 
mechanism pursuant to section 3195, shall examine and adopt rate 
mechanisms or designs that: 
A. 
Encourage efficiency in electricity us~ 
~ Provide 
incentives 
for 
the 
energy-efficient business activity in 
development 
of 
the State; and 
new, 
C. 
Take 
into 
account the 
costs 
and benefits of 
energy 
efficiency and conservation to existing business activity in 
the State. 
2. Report. 
The commission shall undertake an investigation 
to identify rate designs, mechanisms or other means that provide 
incentives for transmission and distribution utilities to promote 
energy efficiency and that promote the security and robustness of 
the electric grid by appropriately compensating transmission and 
distribution 
utilities 
for 
constructing 
and 
maintaining 
infrastructure with excess or redundant capacity. 
In conducting 
its investigation, in addition to any other issues the commission 
determines appropriate, the commission shall consider: 
Page l-LR1680(1) 
A. 
Financial 
and 
other 
incentives 
for 
transmission 
and 
distribution utilities or their customers that may support 
the goals of this section: 
B. The impact of achieving the goals of this section on the 
revenues 
and 
rates 
of 
return 
of 
transmission 
and 
distribution utilities: 
C. Methods available pursuant to sections 3195 and 3211-A to 
accomplish the purposes of this section; 
D. 
The impact of achieving the goals of this section on 
transmission and distribution utility rate levels and rate 
stability; and 
E. The impact of electr ici ty generation and consumption on 
air and water quality. 
By December 1, 2003, the commission shall submit a report of the 
results of its investigation under this subsection to the joint 
standing committee of the Legislature having jurisdiction over 
utilities and energy matters. 
Sec. 4. 35-A MRSA §3211-A, sub-§2, as enacted by PL 2001, c. 
624, §4, is amended by amending the first paragraph to read: 
2. 
Programs. 
The 
commission shall develop and, 
to the 
extent of available funds, 
implement conservation programs 
ln 
accordance with this section. 
The 
commission shall establish 
and, 
on 
a 
schedule 
determined 
by 
the 
commission, 
revise 
objectives 
and 
an 
overall 
energy 
strategy 
for 
conservation 
programs. 
Conservation programs 
implemented 
by the 
commission 
must be consistent with the objectives and an overall energy 
strategy developed by the commission and be cost effective, as 
defined by the commission by rule or order. 
In defining "cost 
effective," the commission may consider the extent to which a 
program 
promotes 
sustainable 
economic 
development 
or 
reduces 
environmental damage to the extent the commission can quantify or 
otherwise reasonably identify such effects. 
Consistent with the 
other requirements of this section, the commission, in adopting 
and implementing conservation programs, shall seek to encourage 
efficiency 
in 
electricity 
use, 
provide 
incentives 
for 
the 
development of new, 
energy-efficient business activity in the 
State and take into account the costs and benefits of energy 
efficiency and conservation to existing business activity in the 
State. 
SUMMARY 
This 
bill 
directs 
the 
Public 
Utilities 
Commission, 
ln 
determining transmission and distribution utility rates or in 
establishing any rate-adjustment mechanism or in developing and 
implementing conservation programs, 
to encourage efficiency in 
electricity use, provide incentives for the development of new, 
energy-efficient business activity in the State and take into 
account 
the 
costs 
and 
benefits 
of 
energy 
efficiency 
and 
conservation to existing business activity in the State. 
This bill also requires the Public Utilities Commission to 
undertake 
an 
investigation of 
how 
to 
create 
incentives 
for 
transmission 
and 
distribution 
utilities 
to 
promote 
energy 
efficiency and construct and maintain adequate infrastructure. 
The bill directs the commission to report its findings to the 
Joint Standing Committee on Utilities and Energy by December 1, 
2003.