An Act To Allow Transmission and Distribution Utilities To Generate and Sell Power
Maine Legislature, Session 123, LD 0743
Committee: Utilities and Energy
Sponsors: TUTTLE, JOY, SMITH, ADAMS, CLARK, FLETCHER, GIFFORD, RICHARDSON, THOMAS, VAUGHAN
Amends: 35-A MRSA §3204, 35-A MRSA §3205, 35-A MRSA §3206-A, 35-A MRSA §3206-B

Legislative Document 
No. 743 
H.P.564 
House of Representatives, February 13,2007 
An Act To Allow Transmission and Distribution Utilities To 
Generate and Sell Power 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative TUTTLE of Sanford. 
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MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representative JOY of Crystal, Senator SMITH of Piscataquis and 
Representatives: ADAMS of Portland, CLARK of Millinocket, FLETCHER of Winslow, 
GIFFORD of Lincoln, RICHARDSON of Carmel, THOMAS of Ripley, VAUGHAN of 
Durham. 
Printeu on re<.:yded paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRS A §3202, sub-§5, as enacted by PL 1999, c. 398, Pt. B, § 1, is 
amended to read: 
5. 
International transmission contracts. 
Nohvithstafldiflg seetiofl 3204, 
transmission Transmission and distribution utilities, including consumer-owned utilities, 
that operate or manage a portion of the grid connected to the New England grid by 
transmission lines that pass through Canada may enter into commercially reasonable 
contracts with Canadian electric utilities for the purchase of back-up services, tie-line 
interruption services, ancillary services, transmission services or any other service that 
promotes effective retail electric competition in northern Maine. The transmission and 
distribution utilities shall make all such contract services available to competitive 
electricity providers at cost, on an equitable basis. 
Commission approval of such 
contracts is not required. 
Nothing in this subsection exempts from commission 
jurisdiction utility operations or activities undertaken pursuant to such contracts. 
Sec. 2. 35-A MRSA §3204, as amended by PL 2003, c. 344, Pt. 0, §24, IS 
repealed. 
Sec. 3. 35-A MRSA §3205, as amended by PL 1999, c. 237, §2 and c. 398, Pt. G, 
§§ 1 to 3, is repealed. 
Sec. 4. 35-A MRS A §3206, as enacted by PL 1997, c. 316, §3, is repealed. 
Sec. 5. 35-A MRSA §3206-A, as amended by PL 2003, c. 505, §30, is repealed. 
Sec. 6. 35-A MRSA §3206-B is enacted to read: 
§3206-B. Generation and sale of electric energy; rules 
Subject to rules adopted by the commission, an investor-owned transmission and 
distribution utility may have a financial interest in or otherwise control generation or 
generation-related assets, may generate electricity and may sell electric energy to retail 
consumers. Rules adopted pursuant to this section are major substantive rules as defined 
in Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill removes the provisions in current law that prohibit investor-owned 
transmission and distribution utilities from owning and operating electric generation 
facilities and from selling electric energy to consumers at retail, including those 
provisions that require such utilities to divest generation assets and generation-related 
business activity. The bill requires the Public Utilities Commission to adopt rules to 
govern the ownership of generation assets, generation of electricity and retail sale of 
electricity by investor-owned transmission and distribution utilities.