An Act To Revise Maine's Utility Reorganization Laws
Maine Legislature, Session 123, LD 1866
Committee: Utilities and Energy
Sponsors: SULLIVAN, BARTLETT, BRANNIGAN, BRYANT, EDMONDS, MILLS, SAVAGE, SCHNEIDER, STRIMLING, ADAMS, BARSTOW, BRAUTIGAM, CLARK, FINCH, HASKELL, JACKSON, PATRICK, PINGREE, RICHARDSON, WHEELER
Amends: 35-A MRSA §708, 35-A MRSA §1101

Legislative Document 
No. 1866 
S.P.679 
April 24, 2007 
An Act To Revise Maine's Utility Reorganization Laws 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator SULLIVAN of York. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: BARTLETT of Cumberland, BRANNIGAN of Cumberland, 
BRYANT of Oxford, President EDMONDS of Cumberland, MILLS of Somerset, SAVAGE of 
Knox, SCHNEIDER of Penobscot, STRIMLING of Cumberland, Representatives: ADAMS of 
Portland, BARSTOW of Gorham, BRAUTIGAM of Falmouth, CLARK of Millinocket, 
FINCH of Fairfield, HASKELL of Portland, JACKSON of Allagash, PATRICK of Rumford, 
PINGREE of North Haven, RICHARDSON of Carmel, WHEELER of Kittery. 
Pnm~d on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §708, sub-§2, ~A, as enacted by PL 1987, c. 141, Pt. A, §6, 
is repealed and the following enacted in its place: 
A. Unless exempted by rule or order of the commission, reorganization may not take 
place without the approval of the commission. 
(1) Before authorizing a reorganization subject to this section, when a public 
utility that is a party to the proposed transaction has gross annual Maine revenues 
exceeding $50,000,000, the commission must find that the proposal will: 
(a) Advance the economic development and information access goals of the 
State as set forth in section 7101, subsections 2 and 4 to the extent applicable 
to the type of utility involved; 
(b) Result in short-term and long-term economic benefits to ratepayers; and 
(c) Be consistent with the interests of the utility's investors. 
(2) With respect to the reorganization of a public utility other than a public 
utility subject to subparagraph (1), a reorganization may not be approved by the 
commission unless it is established by the applicant for approval that the 
reorganization is consistent with the interests of the utility's ratepayers and 
investors. 
(3) The commission shall rule upon all requests for approval of a reorganization 
within 60 days of the filing of the request for approval. If it determines that the 
necessary investigation cannot be concluded within 60 days, the commission may 
extend the period for a further period of no more than 120 days, except that these 
time limits do not apply to a reorganization subject to subparagraph (1). 
In 
granting its approval. the commission may impose such terms, conditions or 
requirements as, in its judgment, are necessary to protect the interests of 
ratepayers. These conditions may include provisions that ensure the following: 
(a) That the commission has reasonable access to books, records, documents 
and other information relating to the utility or any of its affiliates, except that 
the commission may not have access to trade secrets unless it is essential to 
the protection of the interests of ratepayers or investors. The commission 
shall afford trade secrets and other information such protection from public 
disclosure as is provided in the Maine Rules of Civil Procedure; 
(b) That the commission has all reasonable powers to detect, identify, review 
and approve or disapprove all transactions between affiliated interests; 
(c) That the utility's ability to attract capital on reasonable terms, including 
the maintenance of a reasonable capital structure, is not impaired; 
(d) That the ability of the utility to provide safe, reasonable and adequate 
service is not impaired; 
(e) That the utility continues to be subject to applicable laws, principles and 
rules governing the regulation of public utilities; 
(f) That the utility's credit is not impaired or adversely affected; 
(g) That reasonable limitations be imposed upon the total level of investment 
in nonutility business, except that the commission may not approve or 
disapprove the nature of the nonutility business; 
(h) That the commission has reasonable remedial power, including, but not 
limited to, the power, after notice to the utility and all affiliated entities of the 
issues to be determined and the opportunity for an adjudicatory proceeding, 
to order divestiture of or by the utility in the event that divestiture is 
necessary to protect the interests of the utility, ratepayers or investors. A 
divestiture order must provide a reasonable period within which the 
divestiture must be completed; and 
(i) 
That neither ratepayers nor investors are adversely affected by the 
reorganization. 
Sec. 2. 35-A MRSA §708, sub-§4, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read: 
4. Filing fee. Within 30 days after the application for approval of a reorganization is 
filed pursuant to subsection 2, the commission may order the applicant to pay a filing fee 
not to exceed $50,000, if the commission determines that the application may involve 
issues wffleI:t that will necessitate significant additional costs to the commission, except 
that in the case of any utility subject to subsection 2, paragraph A, subparagraph (1), the 
commission may order the applicant to pay a filing fee not to exceed $100,000. The 
applicant may request the commission to waive all or a portion of the filing fee. The 
commission shall rule on the request for waiver within 30 days. Notwithstanding any 
other provision of law, filing fees paid as required in this subsection shall must be 
segregated, apportioned and expended by the commission for the purposes of processing 
the application. Any portion of the filing fee that is received from an applicant and is not 
expended by the commission to process the application shall must be returned to the 
applicant. 
Sec. 3. 35-A MRSA §1101, sub-§l-A is enacted to read: 
I-A. 
Standard of approval for sales, mergers and consolidations of large 
utilities. Before authorizing a merger, consolidation, sale or other disposition of property 
subject to subsection 1, when a public utility that is a party to the proposed transaction 
has gross annual Maine revenues exceeding $50,000,000, the commission must find that 
the proposal will: 
A. Advance the economic development and information access goals of the State as 
set forth in section 7101, subsections 2 and 4 to the extent applicable to the type of 
utility involved; 
B. Result in short-term and long-term economic benefits to ratepaye~s; and 
C. Be consistent with the interests of the utility's investors. 
Sec. 4. Application. Notwithstanding the Maine Revised Statutes, Title 1, section 
302, those sections of this Act that repeal and replace Title 35-A, section 708, subsection 
I 
2, paragraph A;- amend Title 35-A, section 708, subsection 4; and enact Title 35-A, 
section I 101, subsection I -A apply to any decision made by the Public Utilities 
Commission after the effective date of this Act, including decisions made involving 
proceedings pending before the commission prior to the effective date of this Act. 
SUMMARY 
This bill requires the Public Utilities Commission to approve a merger, consolidation, 
reorganization or sale involving a Maine public utility with revenues greater than 
$50,000,000 only if the commission is satisfied that the proposal will advance the 
economic development and information access goals of the State, result in economic 
benefits to ratepayers and be consistent with the interests of investors. In the case of a 
utility with annual revenues totaling $50,000,000 or less, the applicable standard for 
approval is the same standard as is currently applicable.