An Act Regarding the Long-term Contracting Authority of the Public Utilities Commission
Maine Legislature, Session 123, LD 0268
Committee: Utilities and Energy
Sponsors: BLISS, BARTLETT
Amends: 35-A MRSA §3210-C

Legislative Document 
No. 268 
H.P.224 
House of Representatives, January 18,2007 
An Act Regarding the Long-term Contracting Authority of the 
Public Utilities Commission 
(EMERGENCY) 
Submitted by the Public Utilities Commission pursuant to Joint Rule 204. 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative BLISS of South Portland. 
Cosponsored by Senator BARTLETT of Cumberland. 
Printed on recycled paper 
7r/~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Emergency preamble. Whereas, acts of the Legislature do not become effective 
until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the New England independent system operator and the Federal Energy 
Regulatory Commission are moving forward with regional capacity requirements that 
will add significant costs to Maine customers; and 
Whereas, long-term contracts for capacity resources may reduce the costs of the 
regional capacity requirements and enhance grid reliability; 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. 35-A MRSA §3210-C, sub-§l, as enacted by PL 2005, c. 677, Pt. C, §1, 
is amended to read: 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
"Capacity resource" means any renewable capacity resource, nonrenewable 
capacity resource or HeW interruptible, demand response or energy efficiency 
capacity resource. 
B. "Interruptible, demand response or energy efficiency capacity resource" means a 
resource that has demand response, interruptible or energy efficiency capacity 
recognized by the 6omfR:issioH New England independent system operator or 
successor organization. 
C. 
"New" as applied to any capacity resource means a capacity resource that: 
(1) Has an in-service date after September 1,2005; 
(2) Was added to an existing facility after September 1,2005; 
(3) For at least 2 years was not operated or was not recognized by the New 
England independent system operator as a capacity resource and, after September 
1,2005, resumed operation or was recognized by the New England independent 
system operator as a capacity resource; or 
(4) 
Was refurbished after September 1, 2005 and is operating beyond its 
previous useful life or is employing an alternate technology that significantly 
increases the efficiency of the generation process. 
D. 
"Nonrenewable capacity resource" means an electric generation resource other 
than a renewable capacity resource. 
Page I - 123LR0761(Ol)-1 
E. "Renewable capacity resource" means a renewable resource, as defined in section 
3210, subsection 2, paragraph C, except "renewable capacity resource" does not 
include: 
(1) A generator fueled by municipal solid waste in conjunction with recycling; or 
(2) A hydroelectric generator unless it meets all state and federal fish passage 
requirements applicable to the generator. 
Sec. 2. 35-A MRSA §3210-C, sub-§3, as enacted by PL 2005, c. 677, Pt. C, §1, 
is amended to read: 
3. 
Commission authority. 
The comrmSSlOn may direct large investor-owned 
transmission and distribution utilities to enter into long-term contracts for: 
A. Capacity resources; aHd 
B. 
Any available energy associated with capacity resources contracted under 
paragraph A: 
(1) To the extent necessary to fulfill the policy of subsection 2, paragraph A; or 
(2) 
If the commission determines appropriate for purposes of supplying or 
lowering the cost of standard-offer service pW'suaat to seetioa 3212. If eoafraets 
are eRtered iato Available energy contracted pursuant to this subparagraph.,.-the 
eoatraets fRl:Ist be treated as staHdard offer sepliee eoatraets pW'sl:lant to seetioa 
~ 
may be sold into the wholesale electricity market in conjunction with 
solicitations for standard-offer supply; and 
C. 
Any available ancillary services or renewable energy credits associated with 
capacity resources contracted under paragraph A to the extent the cost of the ancillary 
services or renewable energy credits is below market value or the purchase of the 
ancillary services or renewable energy credits adds value to the transaction. 
The commission may direct large investor-owned transmission and distribution utilities to 
enter into contracts under this subsection ealy on a wholesale basis or as agents for their 
customers and only in accordance with this section. To the greatest extent possible, the 
commission shall develop procedures having the same legal and financial effect as the 
procedures used for standard-offer service pursuant to section 3212 for large investor-
owned transmission and distribution utilities. 
The commission may enter into contracts for interruptible, demand response or energy 
efficiency capacity resources. These contracts are not subject to the rules of the State 
Purchasing Agent. 
Capacity resources contracted under this subsection may not exceed the amount 
necessary to ensure the reliability of the electric grid of this State or to lower customer 
costs as determined by the commission pursuant to rules adopted under subsection 10. 
Unless the commission determines the public interest requires otherwise, a capacity 
resource may not be contracted under this subsection unless the commission determines 
that the capacity resource is recognized as a capacity resource for purposes of any 
regional or federal capacity requirements. 
Sec. 3. 35-A MRS A §3210-C, sub-§4, ~A, as enacted by PL 2005, c. 677, Pt. C, 
§ 1, is amended to read: 
A. 
The commission shall select capacity resources that are competitive and the 
lowest price when compared to other available offers for capacity resources of the 
same or similar contract duration or terms. The eomm.issioa shall eoasider the eost of 
the eapaeity aad the eost of related eaergy. The eol1.'Hllissioa shall, by l1:11es adopted 
pHTs1:laat to s1:losectioa 10, establish a methodology for eale1:l1atiag aad eoasideriag 
the eost ofrelated eaergy for eapaeity oaly offers. 
Sec. 4. 35-A MRSA §3210-C, sub-§7, as enacted by PL 2005, c. 677, Pt. C, §1, 
lOis amended to read: 
7. Disposition of resources. A large investor-owned transmission and distribution 
utility shall sell capacity resources, energy, ancillary services or renewable energy credits 
purchased pursuant to subsection 3 or take other action relative to such capacity 
resources, energy, ancillary services or renewable energy credits as directed by the 
commission. 
Emergency clause. In view of the emergency cited in the preamble, this Act takes 
effect when approved. 
SUMMARY 
This bill facilitates the implementation of the Maine Revised Statutes, Title 35-A, 
section 321O-C by the Public Utilities Commission. Section 3210-C took effect in 2006 
and authorizes the Public Utilities Commission to direct large investor-owned 
transmission and distribution utilities to enter into certain long-term contracts. Section 
3210-C also directs the Public Utilities Commission to adopt rules to implement this 
directive.