An Act To Require Review of Utility Rates Prior to Approval of Alternative Rate Plans
Maine Legislature, Session 121, LD 0371
Committee: Utilities and Energy
Sponsors: BLISS, HALL, GOODWIN
Amends: 35-A MRSA §3195, 35-A MRSA §4706, 35-A MRSA §9103

Legislative Document 
No. 371 
H.P.291 
House of Representatives, January 30, 2003 
An Act To Require Review of Utility Rates Prior to Approval of 
Alternative Rate Plans 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative BLISS of South Portland. 
Cosponsored by Senator HALL of Lincoln and 
Representative: GOODWIN of Pembroke. 
Printed on recycled paper 
7rl~/J1.~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3195, sub-§2, as amended by PL 1999, c. 
398, Pt. A, §7l and affected by §§104 and 105, is further amended 
to read: 
2. 
Just 
and 
reasonable 
rates. 
In 
determining 
the 
reasonableness of any rate-adjustment mechanism established under 
this subchapter, 
the commission shall apply the standards of 
section 
to 
ensure 
that 
the 
rates 
resulting 
from 
the 
implementation of the mechanism are just and reasonable. 
Prior 
to the adoption of a new or replacement alternative rate plan or 
renewal of any existing alternative rate plan, the commission 
shall, in order to ensure that rates at the starting point of the 
plan are just and reasonable, conduct a revenue reguirement and 
earnings review pursuant to the standards of section 301. 
Sec. 2. 35-A MRSA §4706, sub-§§3 and 6, as enacted by PL 1997, 
c. 707, §10, are amended to read: 
3. 
Just 
and 
reasonable 
rates. 
In 
determining 
the 
reasonableness of any rate-adjustment mechanism established under 
this subchapter, 
the commission shall apply the standards of 
section 
to 
ensure 
that 
the 
rates 
resulting 
from 
the 
implementation 
of 
a 
rate-adjustment 
mechanism 
are 
just 
and 
reasonable. 
Prior to 
the 
adoption of 
a 
new 
or 
replacement 
alternative rate plan or renewal of any existing alternative rate 
plan, the commission shall, in order to ensure that rates at the 
starting point of the plan are just and reasonable, conduct a 
revenue reguirement and earnings review pursuant to the standards 
of section 301. 
6. 
Amendment to multiyear rate plans. 
The commission may 
not amend or prematurely terminate the terms of a multiyear rate 
plan in 
a 
manner 
that prevents 
or 
threatens 
the utility's 
opportunity to recover 
a 
reasonable rate of return over 
the 
entire term of the plan. 
The commission shall ensure compliance 
with 
the 
reguirements 
of 
this 
subsection 
in 
the 
revenue 
reguirement proceeding and earnings review reguired by subsection 
.L.. 
Sec. 3. 35-A MRSA §9103, sub-§§5 and 6, as enacted by PL 1993, 
c. 638, §2, are amended to read: 
5. 
Reasonable charges. 
The alternative form of regulation 
must ensure that customers pay only reasonable charges for local 
telephone 
services. 
Prior 
to 
the 
adoption 
of 
a 
new 
or 
replacement alternative rate plan or 
renewal of 
any existing 
alternative form of regulation, in order to ensure that rates at 
the starting point of the plan are just and reasonable, 
the 
Page l-LR13l0(1) 
commission 
shall 
conduct 
a 
revenue 
requirement 
and 
earnlngs 
review pursuant to the standards of section 301. 
6. 
Reasonable return. 
The alternative form of regulation 
must ensure that the telephone utility has, over the period of 
the alternative form of regulation, a reasonable opportunity to 
earn a fair return on the investment necessary to provide local 
telephone services. 
The commission shall ensure compliance with 
the requirements of this subsection in the revenue requirement 
proceeding and earnings review required by subsection 5. 
SUMMARY 
This 
bill 
requires 
the 
Public 
Utilities 
conduct 
a 
rate 
case 
ensuring 
the 
justness 
of 
authorizing or reauthorizing a price cap plan. 
Commission 
to 
rates 
before