Maine Legislature, Session 123, LD 2050
Committee: Utilities and Energy
Sponsors: PINGREE, BARTLETI, BERRY, BRAUTIGAM, CUMMINGS, HINCK, MILLS, EDMONDS, HOBBINS, MARTIN
Amends: 35-A MRSA §302, 35-A MRSA §312, 35-A MRSA §2102, 35-A MRSA §2103, 35-A MRSA §2105, 35-A MRSA §2110, 35-A MRSA §2365-B, 35-A MRSA §2306, 35-A MRSA §3132, 35-A MRSA §3136, 35-A MRSA §3154, 35-A MRSA §3195

Legislative Document 
No. 2050 
H.P.1434 
House of Representatives, December 21. 2007 
AD Ad To Protect Maine Consumers of Electricity 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Oerk of the House on December 19, 2007. Referred to the Committee on 
Utilities and Energy pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 
401. 
Presented by Representative PINGREE of North Haven. 
Cosponsored by Senator BARTLETI of Cumberland and 
1r/~/J7.~ 
Mll..LICENT M. MacFARLAND 
Clerk 
Representatives: BERRY of Bowdoinham, BRAUTIGAM of Falmouth, Speaker CUMMINGS 
of Portland, HINCK of Portland, MILLS of Farmington, Senators: President EDMONDS of 
Cumberland, HOBBINS of York, MARTIN of Aroostook. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §l02, sub-§2-B is enacted to read: 
2-B. Compliant transmission and distribution utility. "Compliant transmission 
and distribution utility" means a transmission and distribution utility that has been found 
to be compliant with all directives of the commission 16 the extent that it has taken all 
reasonable and necessary steps within its control to achieve compliance. 
A transmission and distribution utility is compliant with regard to discontinuing 
participation in ISO New England if it has made a filing with the Federal Energy 
Regulatory Commission reql:lesting termination of membership in ISO New England. 
Sec. 2. 35-A MRSA §l02, sub-§lO-A is enacted to read: 
to-A. . Noncompliant transmission and distribution utility. 
"Noncompliant 
transmission and distribution utility" means a transmission and distribution utility that has 
not been found to be compliant with all directives of the commission to the extent that it 
has taken all reasonable and necessary steps within its control to achieve compliance. 
Sec. 3. 35-A MRSA §302, :sub-§2 is enacted to read: 
2. Costs of noncompliance. All costs incurred by a noncompliant transmission and 
distribution utility for participation in ISO New England, including, but not limited to, 
travel expenses, prorated salaries and ISO New England fees. 
Sec. 4. 35-A MRSA §312, first ~, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read: 
During any proceeding initiated by a public utility by a filing pursuant to section 307 
or 1302, the commission may temporarily approve any undisputed amounts of a 
requested rate increase or me decrease. 
If the parties are unable to agree on an 
undisputed amount, any party, at any time after the cross-examination of the utility's 
direct case has been conducted and all parties have filed their direct cases, may request 
the commission to require the parties to provide a written statement of those issues that 
are being contested and an estimated dollar value of the extent of the disagreement 
between the utility and the other party on that issue. The commission, after examining 
the statements of issues presented, may determine an amount wfl.i.efl that is undisputed. 
The commission may include in the undisputed amount the amount put in question by any 
party other than the utility, if the commission determines that that party has no possibility 
of ultimately prevailing on that issue. The amounts temporarily approved WU must be 
filed by the utility as a temporary schedule WHich shall be that is effective from the date 
... 
of approval of the temporary schedule until the issuance of the final order in.!! section 307 
35' 
proceeding. 
Temporary rates may not be granted under any circumstances to a 
noncompliant transmission and distribution utility. 
Sec. 5. 35-A MRSA §2102, 'Sub-§2, as amended by PL 1999, c. 398, Pt. A, §30 
and affected by § § I 04 and J 05, is further amended to read: 
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2. Approval not required. Except as provided in section 2104, the commission's 
approval is not required for a public utility to furnish service in any municipality in which 
that public utility is furnishing service on October 8, 1967. Approval is not required for 
the operation of a radio paging service or mobile telecommunications services. Approval 
is not required for a transmission and distribution utility to distribute electricity to any 
other transmission and distribution utility. Approval is not required for a person seeking 
to provide service within the service territory of a noncompliant transmission and 
distribution utility. The commission shall develop an expedited process for ensuring that 
such a person's new service meets the commission's guidelines and requirements. 
Sec. 6. 35-A MRSA §2103, sub-§2, ~s enacted by PL 1987, c. 141, Pt. A, §6, is 
I I 
amended to read: 
2. Filing objections. If, after notice, the other cooperative or utility opposes the 
bringing of electrical service to the new service location, within 7 days of receipt of the 
notice of proposed service, it shall: 
A. 
File objections to the bringing of the electrical service with the commission; and 
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B. 
Send a copy of its objections to the utility or cooperative and to the party 
requesting electrical service. 
A noncompliant transmission and distribution utility may not object to any extension of 
service within its service territory. The commission shall consider only the objections of 
a compliant transmission and distribution utility. With regard to any proposed extension 
of service by a noncompliant transmission and distribution utility. the commission shall 
assume that the extension is adverse to the interests of the State's ratepayers. 
Sec. 1. 35-A MRSA §2105, sub-§2, as enacted by PL 1987, c. 141, Pt. A., §6, is 
amended to read: 
2. Declaration without hearing. The commission, may make a declaration without 
public hearing, if it appears that the utility serving or authorized to serve, the utility 
seeking approval from the commission to provide service and any customer or customers 
to receive service agree that the utility seeking approval to serve should provide service. 
When the utility serving or authorized to serve is a noncompliant transmission and 
distribution utility, the commission shall make a declaration without public hearing 
whc_never the customer or customers to receive service and the utility seeking approval 
from the commission to provide service agree that the utility seeking approval to serve 
should provide service. 
Sec. 8. 35-A MRSA §2110, sub-§l, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read: 
1. 
Commission authorization. The commission may authorize a public utility 
organized by private and special act of the Legislature to furnish or extend its service in, 
to or through a city or town notwithstanding any territorial limitations, express or 
implied, in the private and special act of the Legislature by which it was organized or 
under which it is enfranchised. The commission may not authorize any extension of 
service by a noncompliant transmission and distribution utility. Within 20 days after the 
I 
commission's final authorization, the public utility shall file a certificate that shows the 
authorization with and pay $20 to the Secretary of State. When the certificate is filed, the 
public utility's power to extend its service become~ effective. 
Sec. 9. 35-A MRSA §2365-B, sub-§2,~, as enacted by PL 2001, c. 110, §2, is 
amended to read: 
D. 
If a public utility objects to the line on the basis that it may constitute a 
duplication of existing transmission or distribution facilities or may interfere with the 
adequate and safe delivery of electricity to others, the commission issues a finding 
that the line is not a duplication of existing transmission or distribution facilities and 
does not interfere with the adequate and safe delivery of electricity to others. A 
finding is not required under this paragraph unless a public utility has objected in 
writing to the applicable licensing authority. 
A noncompliant transmission and 
distribution utility may not make such an objection. A noncompliant transmission 
and distribution utility does not have standing to intervene in any proceeding under 
this section. 
Sec. 10. 35-A MRSA §2306, as amended by PL 1999, c. 398, Pt. A, §36 and 
affected by §§ 1 04 and 105, is further amended to read: 
§2306. No taking property without consent 
A public utility organized under section 2101 and former section 2109 may not take, 
appropriate or use the location, pipes, lines, land or other property of any other person 
doing or authorized to do a similar business, without consent of the other person, except 
by Private and Special Act of the Legislature. The commission may authorize a public 
utility to use the property of a noncompliant transmission and distribution utilitv after 
providing the noncompliant transmission and distribution utility with an opportunity for 
comment and a hearing, if requested, to determine the appropriate terms and conditions of 
such authorized use. 
Sec. 11. 35-A MRSA §3132, sub-§5, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read: 
5. Commission .approval of a proposed line. The commission may approve or 
disapprove all or portions of a proposed transmission line and shall make such order'> 
regarding its character, size, installation and maintenance as are necessary. having regard 
for any increased costs .caused by the orders. The commission mav not approve am 
project that causes an increase in the prices paid bv ratepayers for capacity and energy 
unless the commission finds that the project is necessary to Rreserve the reliability of 
service to the ratepayers of the public utility. 
36. 
Sec. 12. 35-A MRSA §3132, sub-§9, as amended by PL 2007, c. 148, §8, IS 
further amended to read: 
9. Filing fee; w.aiver of fee. When a petition is filed under this section, the person or 
persons involved shall pay to the commission an amount equal to 211 00 of 1 % of the 
estimated cost to erect, rebuild or relocate the transmission line provided except that, in 
I 
the case of a petition flied under subsection 2, the fee is 411 00 of I %. The person may, at 
the time of the filing of notice of its intent to file the petition, or, in the case of lines 
subject to subsection 2, at the time of the filing of the petition, 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. The fee for a petition filed by a noncompliant transmission and 
distribution utility is 1/20 of 1% of the estimated cost. No fee waivers may be granted to 
a noncompliant transmission and distribution utility. 
Filing fees paid as required under this subsection must be segregated, apportioned and 
expended by the commission for the purposes of this section. Any portion of the filing fee 
that is received from any person and is not expended by the commission to process the 
II 
petition for a certificate of public convenience and necessity must be returned to the 
person. 
Sec. 13. 35-A MRSA §3136, sub-§l, as amended by PL 2007, c. 148, §12, is 
further amended to read: 
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1. 
Land necessary for location of transmission lines carrying 5,000 volts. 
Subject to approval by the commission under subsection 4, a transmission and 
distribution utility may take and hold by right of eminent domain lands and easements 
necessary for the proper location of its transmission lines that are designed to carry 
voltages of 5,000 volts or more and of necessary appurtenances, located within the 
territory in which the utility is authorized to do public utility business, in the same 
manner and under the same conditions as set forth in chapter 65. 
A noncompliant 
transmission and distribution utility is not granted the power of eminent domain. Once a 
noncompliant transmission and distribution utility has been determined to be a compliant 
transmission and distribution utility, it may exercise the power of eminent domain 
pursuant to this subsection. 
Sec. 14. 35-A MRSA §3136, sub-§3, as amended by PL 2007, c. 148, §13, is 
further amended to read: 
3, Prior right to locate distribution lines and appurtenances in right-of-way 
limits of public way. 
Subject to approval by the commission under subsection 4, 
transmission and distribution utilities may take and hold by right of eminent domain land 
3] 
or easements necessary for the proper location of their distribution lines and the necessary 
Jppurtcnances. but only where the transmission and distribution utilities had a prior right 
lu locate their distribution lines and necessary appurtt:nances in the right-of-\vay limits of 
3.+ 
a public way and the body having jurisdiction over the public way has caused the utility 
3:; 
io remove its distribution lines and appurtenant structures outside the right-of-way limits 
of the public way. 
This right does not apply to lands or easements as specified in 
subsection 2, paragraphs B, C, 0 and E. A noncompliant transmission and distribution 
utility is not granted the power of eminent domain. Once a noncompliant transmission 
and distribution utility has been determined to be a compliant transmission and 
distribution utility, it may exercise the power of eminent domain pursuant to this 
subsection. 
Sec. 15. 35-A MRSA §3154, sub-§9 is enacted to read: 
9. Demand-side management program. The commission shall use the full extent 
of the powers and authority granted under this Title, including the right to participate in 
proceedings and activities before a federal agency, including but not limited to the 
Federal Energy Regulatory Commission and the United States Department of Energy, a 
regional transmission organization or independent system operator in which a 
transmission and distribution utility subject to its jurisdiction is a member and a state 
regulatory agency or organization, to advocate for and, if possible, to require the 
development, adoption and implementation of a demand-side management program that 
compensates participants for reductions in local or increased output of on-site generation 
coincident with annual or monthly system peak load on the transmission and distribution 
system. 
Sec. 16. 35-A MRSA §3195, sub-§I, as amended by PL 1999, c. 39S, Pt. A, §71 
and affected by §§ 104 and 105, is further amended to read: 
1. Rate-adjustment mechanisms. This Title may not be construed to prohibit the 
commission from or to restrict the commission in establishing or authorizing any 
reasonable rate-adjustment mechanisms to promote efficiency in transmission and 
distribution utility operations and least-cost planning. Rate-adjustment mechanisms for a 
compliant transmission and distribution utility may include, but are not limited to: 
A. 
Decoupling of utility profits from utility sales through revenue reconciliation; 
B. 
Reconciliation of actual revenues or costs with projected revenues or costs, either 
on a total or per customer basis; 
C. Adjustment of revenues based on reconciled, indexed or forecasted costs; and 
D. Positive or negative financial incentives for efficient operations. 
Sec. 17. 35-A MRSA §3195, sub-§7 is enacted to read: 
7. Noncompliant transmission and distribution utility. Notwithstanding any other 
provision of law, the commission may not establish a rate-adjustment mechanism for a 
noncompliant transmission and distribution utility. The commission shall immediately 
remove any rate-adjustment mechanism in place for a transmission and distribution utility 
that is found to be a noncompliant transmission and distribution utility on or after the 
effective date of this subsection. 
Once a noncompliant transmission and distribution 
I 
utility has submitted proof of its being a compliant transmission and distribution utility, 
the commission may grant or authorize a rate-adjustment mechanism as the commission 
finds appropriate under this section. 
« 
Sec. 18. Time-of-use metering program for new construction. The Public 
Utilities Commission shall develop a proposal for a program requiring all new 
commercial and residential construction to have time-of-use electric meters installed. 
The commission shall submit the proposal together with a recommendation concerning its 
implementation to the joint standing committee of the Legislature having jurisdiction 
over utilities and energy matters by March 15,2009. The joint standing committee of the 
Legislature having jurisdiction over utilities and energy matters may submit legislation 
concerning time-of-use metering and the proposed program to the First Regular Session 
of the I 24th Legislature. 
Sec. 19. Working group. The Governor's Office of Energy Independence and 
Security shall convene a working group to examine barriers to and the creation of 
incentives for installation of systems in residential, commercial and industrial buildings 
that conserve energy through reuse of waste heat. The working group must consist of 
both public and private energy efficiency experts representing design, construction, 
installation and operations expertise. The working group shall examine technical and 
policy issues in its work, including but not limited to the creation of tax incentives or 
other programs to encourage such systems. 
The office shall also work with the 
Department of Administrative and Financial Services to develop a plan that decreases 
wasteful peak load energy consumption in existing and new state buildings. The office 
shall provide a report of the working group and the state building plan to the joint 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters by December I, 2009. The joint standing committee of the Legislature having 
jurisdiction over utilities and energy matters is authorized to subPlit legislation on the 
reuse of waste heat during the Second Regular Session of the I 24th Legislature. 
SUMMARY 
This bill defines "compliant transmission and distribution utility" and "noncompliant 
transmission and distribution utility." 
h clarifies that the Public Utilities Commission is not allowed to grant temporary 
rates to a noncompliant tran5lTlission and distribution utility. 
It requires the Public Utilities Commission to develop an expedited process to ensure 
that the nev. service of 11 person seeking to provide service within the service territory of 11 
nOllCOll1plimlt transmrssion mid distrioution utility meets the commission's guidelines and 
requirements. 
It describes what a noncompliant transmission and distribution utility must do to 
regain certain powers lost due to the utility'S being a noncompliant transmission and 
distribution utility. It also clarifies what a noncompliant transmission and distribution 
utility may not do . 
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