An Act To Revise Maine's Utility Reorganization Laws
Maine Legislature, Session 123, LD 1866
House Amendment HA_A_H629 (House)

HOUSE AMENDMENT "A" to S.P. 679, L.D. 1866, Bill, "An Act To Revise 
Maine's Utility Reorganization Laws" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 35-A MRS A §708, sub-§2, ~A, as enacted by PL 1987, c. 14 I, Pt. A, §6, 
is amended to read: 
A. Unless exempted by rule or order of the commission, He ~ reorganization may not 
take place without the approval of the commission. Ne 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 and, when a public utility that is a party to the proposed reorganization is a 
telephone utility with gross annual Maine revenues exceeding $50,000,000 and the 
proposed reorganization would result in a change of ownership and control of that 
public utility, unless it is established by the applicant for approval that the 
reorganization will advance the economic development and information access goals 
of the State as set forth in section 7101, subsections 2 and 4 and will result in net 
benefits to ratepayers after considering such factors as the impact of the 
reorganization on rates, service, employees, customer choice and access and 
deployment of high-speed information technologies. The commission shall rule upon 
all requests for approval ofa 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. In granting its approval, the commission shall impose such terms, 
conditions or requirements as, in its judgment, are necessary to protect the interests of 
ratepayers. 
These conditions sftaU must include provisions wAioA aSSlife tAe 
follewing that ensure: 
(1) 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 
Public Utilities 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; 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "If, to S.P. 679, L.D. 1866 
(2) That the commission has all reasonable powers to detect, identify, review and 
approve or disapprove all transactions between affiliated interests; 
(3) That the utility's ability to attract capital on reasonable terms, including the 
maintenance of a reasonable capital structure, is not impaired; 
(4) That the ability of the utility to provide safe, reasonable and adequate service 
is not impaired; 
(5) That the utility continues to be subject to applicable laws, principles and 
rules governing the regulation of public utilities; 
(6) That the utility's credit is not impaired or adversely affected; 
(7) That reasonable limitations be imposed upon the total level of investment in 
nonutility business, except that the commission may not approve or disapprove of 
the nature of the nonutility business; 
(8) 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 interest of the utility, ratepayers or investors. A divestiture order sftaU 
must provide a reasonable period within which the divestiture sflat.l must be 
completed; ilfKi 
(9) 
That neither ratepayers nor investors are adversely affected by the 
reorganization~; and 
(10) When a public utility that is a party to the proposed reorganization is a 
telephone utility with gross annual Maine revenues exceeding $50,000,000 and 
the proposed reorganization would result in a change of ownership and control of 
that public utility, that the reorganization will: 
(a) Advance the economic development and information access goals of the 
State as set forth in section 7101, subsections 2 and 4; 
(b) Result in net benefits to ratepayers after considering such factors as the 
impact of the reorganization on rates, service, employees, customer choice 
and access and deployment of high-speed information technologies; and 
(c) Be consistent with the interests of the utility's investors.' 
Amend the bill in section 2 in subsection 4 in the 5th line (page 2, line 20 in L.D.) by 
striking out the following: "any utility subject to subsection 2, paragraph A, subparagraph 
ill" and inserting the following: 'an applicant that is a telephone utility that has gross 
annual Maine revenues exceeding $50,000,000' 
Amend the bill in section 3 by striking out all of subsection I-A (page 2, lines 30 to 
in L.D.) and inserting the following: 
HOUSE AMENDMENT 
~~'O. 
HOUSE AMENDMENT .1}" to S.P. 679, L.D. 1866 
'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 is 
a telephone utility with gross annual Maine revenues exceeding $50,000,000 and the 
proposed transaction would result in a change of the ownership and control of that public 
utility, 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; 
B. Result in net benefits to ratepayers after considering such factors as the impact of 
the proposed transaction on rates, service, employees, customer choice and access 
and deployment of high-speed information technologies; and 
C. Be consistent with the interests of the utility's investors.' 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. Application. In accordance with the Maine Revised Statutes, Title 1, 
section 302, those sections of this Act that amend Title 35-A, section 708, subsection 2, 
paragraph A and Title 35-A, section 708, subsection 4 and enact Title 35-A, section 1101, 
subsection I-A do not apply to proceedings pending before the Public Utilities 
Commission prior to the effective date of this Act.' 
SUMMARY 
This amendment changes several provisions of the bill to: 
1. 
Limit the scope to a merger, consolidation, reorganization or sale involving a 
Maine telephone utility with annual revenues greater than $50,000,000; 
2. Require the applicant to establish that there will be a net benefit to ratepayers after 
considering such factors as the impact of reorganization on rates, service, employees, 
customer choice and access and deployment of high-speed information technologies; 
3. Add a provision authorizing the Public Utilities Commission to impose conditions 
on a reorganization that is subject to the additional standards to ensure that the transaction 
will satisfy those standards; and 
4. Specify that the changes proposed in the bill and amendment do not apply to 
proceedings pending before the Public Utilities Commission prior to the effective date of 
SPONSORED BY: ~ 
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the legislation. 
~. (i 
(Representative ~TRICK) ~ 
TOWN: Rumford 
FISCAL :\OTE REQUIRED 
(See attached) 
HOUSE AMENDMENT 
Fiscal Detail and Notes 
Approved: 06/20/07 hac 
LD 1866 
LR 93(08) 
An Act To Revise Maine's Utility Reorganization Laws 
Fiscal Note for House Amendment '{(II 
Sponsor: Rep. Patrick of Rumford 
Fiscal Note Required: Yes 
Fiscal Note 
Reduction of potential revenue increase - Other Special Revenue Funds 
This amendment eliminates any increase in filing fees that may have been generated from the Verizon New England, 
Inc. transfer to FairPoint Communications, Inc. and applies prospectively to proceedings that are initiated on or after 
the effective date of this act. 
LR0093(08) - Fiscal Note - Page I of I