An Act To Provide Energy Opportunities to Northern Maine
Maine Legislature, Session 121, LD 0163
Committee: Utilities and Energy
Sponsors: KNEELAND, YOUNG, MARTIN, STANLEY, BENNETT, FISCHER, JACKSON, LUNDEEN, SHERMAN, WOTTON
Amends: 10 MRSA §1053, 10 MRSA §9202, 10 MRSA §9203

Legislative Document 
No. 163 
S.P.86 
In Senate, January 21,2003 
An Act To Provide Energy Opportunities to Northern Maine 
(EMERGENCY) 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator KNEELAND of Aroostook. 
Cosponsored by Representative YOUNG of Limestone and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: MARTIN of Aroostook, STANLEY of Penobscot, Representatives: BENNETT of 
Caribou, FISCHER of Presque Isle, JACKSON of Fort Kent, LUNDEEN of Mars Hill, 
SHERMAN of Hodgdon, WOTTON of Littleton. 
Printed on recycled paper 
Emergency preamble. Whereas. Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the 
funds 
previously allocated to 
the 
Northern 
Maine Transmission Corporation Fund in the Finance Authority of 
Maine are essential to the viability of and to finance essential 
economic development in northern Maine; and 
Whereas, it is necessary that funding modifications be made 
as soon as possible to ensure the continuous availability of 
funds to carry out the Northern Maine Transmission Corporation's 
essential public functions; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §1053, sub-§6, as repealed and replaced by PL 
1999, c. 531, Pt. G, §1, is amended to read: 
6. 
Securities outstanding. 
The principal amount of revenue 
obligation securities the authority may have outstanding at any 
one time, to which subsection 5 is stated to apply in the trust 
agreement 
or 
other 
document, 
ma--
not 
exceed 
an 
aggregate 
principal amount equal to $+++TGGGTGGG $877,000,000 as follows: 
A. 
The 
sum of $330,000,000 consisting of not more than 
$275,000,000 for loans and up to $55,000,000 for use of bond 
proceeds 
to 
fund 
capital 
reserve 
funds 
for 
revenue 
obligation securities issued pursuant to this 
subchapter 
relating to loans for electric rate stabilization projects; 
B. 
The 
sum of $120,000,000 consisting of not more than 
$100,000,000 for loans and up to $20,000,000 for use of bond 
proceeds 
to 
fund 
capital 
reserve 
funds 
for 
revenue 
obligation securities issued pursuant to this 
subchapter 
relating to loans for major business expansion projects; 
C. 
The 
sum of $57,000,000 consisting of not more 
than 
$45,000,000 for loans and up to $12,000,000 for use of bond 
proceeds 
to 
fund 
capital 
reserve 
funds 
for 
revenue 
obligation securities issued pursuant to this 
subchapter 
relating to workers' compensation residual market mechanism 
projects; 
D. 
The sum of $150,000,000 less the aggregate outstanding 
balance of mortgage loans secured by capital reserve funds 
pursuant to section 1032 for all other revenue obligation 
securities issued pursuant to this subchapter; aHa 
E. 
The 
sum of $120,000,000 consisting of not more than 
$100,000,000 for loans and up to $20,000,000 for use of bond 
proceeds 
to 
fund 
capital 
reserve 
funds 
for 
revenue 
obligation securities issued pursuant to this subchapter 
relating 
to 
loans 
for 
paper 
industry 
job 
retention 
projects..-; and 
F. 
The 
sum of $100,000,000 consisting of not more than 
$85,000,000 for loans and up to $15,000,000 for use of bond 
proceeds 
to 
fund 
capital 
reserve 
funds 
for 
revenue 
obligation securities issued pursuant to this subchapter 
relating to loans for transmission facilities projects. 
The 
amount of revenue obligation securities issued to refund 
securities previously issued may not be taken into account in 
determining the principal amount of securities outstanding, 
as 
long as proceeds of the 
refunding securities are applied as 
promptly as possible to the refunding of the previously issued 
securi ties. 
In computing the total amount of revenue obligation 
securities of the authority that may at any time be outstanding 
for 
any 
purpose, 
the 
amounts 
'f 
the 
outstanding 
revenue 
obligation 
securities 
that 
have 
been 
issued 
as 
capital 
appreciation bonds or as similar instruments are valued as of any 
date of calculation at their then current accreted value rather 
than their face value. 
Sec. 2. 10 MRSA §9202, sub-§I. as enacted by PL 1999, c. 513, 
§6, is amended to read: 
1. 
Establishment 
and 
purpose. 
The 
Northern 
Maine 
Transmission Corporation is established as a body corporate and 
politic and public instrumentality of the State. 
The corporation 
is 
a 
special 
purpose 
corporation 
formed 
and 
managed 
as 
a 
subsidiary of the authority. 
The exercise by the corporation of 
the powers conferred by this chapter sRa-l-l--be is deemed the 
performance of essential public functions. 
The purpose of the 
corporation is to examine the need for and viability of and~ 
its discretion, to finance, permit, construct, own aHa in whole 
or in part, 
operate 
e±ee~~ie--~~aa&ffi~&&~a-~~~-£€£€££~~y--~e 
eeHHee~--e±ee~~ie--~~i±i~iesT or 
to 
otherwise 
facilitate 
the 
transmission 
of 
natural 
gas 
and 
generation, 
production 
and 
transfer of any other energy resources in the northern region of 
the State Wi~R- -t-he- -t,-r--ansrn-i-&&i-<m- -~~ia - -e4:- -t-he- -lJHit:ea--S-t-a-t€£- -i-n- - a 
maHHe~--aae~~a~er--~a--~-~i-n-i-<m--~---t~-~~-t£B~~-ty~--~e--a±±ew 
e~st:eme~s-
seFvieea-~-~~-elee~Fie-~~~~~~~€£-~~-Feeeive-~~~~it~-ef 
seFviee-siffiilaF-~e-all-e~aeF-elee~Fie-e~s~effieFs-iB-~ais-S~a~e. 
Sec. 3. 10 MRSA §9203, sub-§3, as enacted by PL 1999, c. 513, 
§6, amended to read: 
3. 
Acceptance 
of 
proposals 
for 
connections. 
The 
corporation shall request and receive proposals from public and 
private entities to finance, permit, construct or operate any 
natural gas or electric transmission lines necessary to connect 
electric utilities and natural gas customers in the northern part 
of 
the 
State 
with 
the 
transmission 
grid 
and 
natural 
gas 
transmission system of the United States, and may approve those 
proposals if they are in keeping with the intent of this chapter. 
Sec. 4. 10 MRSA §9203, sub-§4 is enacted to read: 
4. 
Conduct studies. 
The 
corporation 
may 
conduct 
such 
studies, including, but not limited to, feasibility studies, as 
may be necessary and convenient to the performance of its duties. 
Sec. 5. PL 2001, c. 714, Pt. Mis repealed. 
Emergency clause. 
In view of the emergency ci ted in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill accomplishes the following. 
1. 
Public Law 
1999, 
chapter 
authorized the Finance 
Authority of Maine to issue up to $35,000,000 in bonds to finance 
the construction of transmission lines. 
This authorization was 
repealed, before it took effect. by Public Law 1999, 
chapter 
531. 
This bill reinstates that authority and 
increases 
the 
bonding limit to $100,000,000. 
2. 
It expands the stated 
Transmission 
Corporation 
to 
transmission of natural gas. 
purposes 
include 
of the Northern 
facilitation 
of 
Maine 
the 
3. 
It 
enacts 
language 
to 
allow 
the 
Northern 
Maine 
Transmission Corporation to conduct studies. 
4. 
It repeals language enacted in Public Law 2001, chapter 
that requires that funds in the Northern Maine Transmission 
Corporation Fund be transferred to the General Fund.