An Act To Revise Maine's Utility Reorganization Laws
Maine Legislature, Session 123, LD 1866
Committee Amendment CA_A_S191 (Senate)
Amends: 35-A MRSA §708

Majority 
COMMITTEE 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 MRSA §708, sub-§2, ~A, as enacted by PL 1987, c. 141, Pt. A, §6, 
is amended to read: 
A. Unless exempted by rule or order of the commission, fl6 ~ 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 has 
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 to the extent applicable to the type of utility 
involved and will result in net benefits to ratepayers. 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. 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 skaU must include provisions wkiek aSSl:lfe tke 
follo:rt'ling 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; 
COMMITTEE AMENDMENT 
tpee, 
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COMMITTEE AMENDMENT" A" 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 shaH 
must provide a reasonable period within which the divestiture shall must be 
completed; aBEl 
(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 has 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 to the extent applicable 
to the type of utility involved: 
(b) Result in net benefits to ratepayers; 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 has gross annual Maine revenues 
exceeding $50,000,000' 
Amend the bill in section 3 in subsection I-A in the 4th line (page 2, line 33 in L.D.) 
by inserting after the following "$50,000,000" the following: 'and the proposed 
transaction would result in a change of the ownership and control of that public utility' 
Amend the bill in section 3 in subsection I-A by striking out all of paragraph Band 
inserting the following: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 679, L.D. 1866 
~ 
'B. Result in net benefits to ratepayers; and' 
Amend the bill in section 4 in the 2nd line (page 2, line 41 in L.D.) by striking out the 
following: "repeal and replace" and inserting the following: 'amend' 
SUMMARY 
This amendment is the majority report of the committee. The amendment changes 
several provisions of the bill relating to the additional criteria for approval required for a 
merger, consolidation, reorganization or sale involving a Maine public utility with annual 
revenues greater than $50,000,000. Specifically, the amendment: 
1. Limits the application of these additional criteria for approval to transactions that 
would result in a change of ownership and control of the public utility; 
2. Changes the criteria for approval relating to benefits to ratepayers from a standard 
of "short-term and long-term economic benefits" to a standard of "net benefits"; and 
3. Adds 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. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05129107 ;!!'vae 
LD 1866 
LR 93(02) 
An Act To Revise Maine's Utility Reorganization Laws 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
This legislation will modify the standard the Public Utilities Commission will apply in reviewing and approving 
reorganizations and mergers involving Maine's largest utilities. It will increase from $50,000 to $100,000 the amr 
,t 
of funding that the commission may obtain from reorganization applicants with gross annual Maine revenues 
exceeding $50,000,000 to contribute toward the Commission's additional costs of processing a reorganization 
proceeding. When and how often the additional revenue will be received cannot be estimated at this time. 
LR0093(02) - Fiscal Note - Page 1 of 1