An Act To Protect Electricity Consumers of North em Maine
Maine Legislature, Session 123, LD 2002
Committee: Utilities and Energy
Sponsors: MARTIN, JACKSON, THERIAULT
Amends: 35-A MRSA §3132, 35-A MRSA §3136

Legislative Document 
No. 2002 
S.P.796 
December 18, 2007 
An Act To Protect Electricity Consumers of North em Maine 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 18, 2007. Referred to the Committee 
on Utilities and Energy pursuant to Joint Rule 308.2 and ordered printed... 
Presented by Senator MARTIN of Aroostook. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative JACKSON of Allagash and Representative: THERIAULT of 
Madawaska. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3132, sub-§2, as amended by PL 2007, c. 148, §3, is 
further amended to read: 
2. Construction of transmission line. Except as otherwise provided in subsection 
53-A, whenever any person proposes to erect within this State a transmission line capable 
of operating at 100 kilovolts, or more, or a transmission line capable of operating at 69 
kilovolts or more that is proposed to se financed, permitted, constructed, owned in whole 
or in part or operated by the }>Jorthern Maine Transmission CorporfttioA pursuant to Title 
10, chapter 1003 or fiRaROed by the FinaRoe Authorit), of MaiRe pursuant to Title 10, 
seotioR 1053, subsectioR e, para-graph F, that person shall file a petition for the approval 
II 
of the proposed line. The petition for approval of the proposed transmission line must 
contain such information.as the commission by rule prescribes. The petition for approval 
must be set down for public hearing. The commission shall issue its order within 6 
months after the petition is filed unless this period is extended either by agreement of all 
the parties or by the commission upon its determination that the party seeking the 
extension would, because Df circumstances beyond that party's control, be unreasonably 
disadvantaged unless the extension were granted, provided that the party t" that time had 
prosecuted its case in good faith and with due diligence. 
At the time of filing of a petition for approval of a proposed line under this section, the 
person filing the petition shall send a copy of the petition by certified mail to the 
municipal officers of the municipality or municipalities in which the line is to be located. 
Sec.2. 35-A MRSA §3132, sub-§2-A, as enacted by PL 2003, c. 506, § 13, is 
amended to read: 
2-A. 0daeT projects requiring approval. The commission shall by rule or order 
adopt standards and procedures for processing an application from an applicant that is not 
a transmission and distribution utility for a certificate of public convenience and necessity 
under this section for a transmission line capable of operating at 69 kilovolts or more that 
is proposed to be fiRMeed, permitted, cORstructed, O .... fled iR whole or if! part or operated 
b)' the Northem MaiRe TraRsmission CorporatioR pursuaRt to Title 10, chapter 1003 or 
finaRced by the FiRRflee AHthority of Maine pursuaRHo Title I 0, se~oR 1053, suasectioR 
6, paragraph F. 
Except as the commission determines otherwise appropriate, the 
standards and procedures must conform as far as possible with those that would apply to 
an application from a transmission and distribution utility. Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 3. 35-A MRSA §3132, sub-§2-B, as enacted by PL 2003, c. 506, § 13, is 
amended to read: 
2-B. Standards for certain projects. The commission may shall deny a certificate 
of public convenience and necessity for a transmission line capable of operating at@ ill 
kilovolts or more that is proposed to be financed, permitted, constructed, owned in whole 
or in part or operated by the }>Jorthern MaiRe TraRsmissioR COrporatiOR pursuant to Title 
10, chapter 1003 or finaRced by the FinaRoe Authority of MaiRe pUrSl:laAt to Title 10, 
seotioR 1053, subsectioR 6, paragraph F a person or involves the purchase of transmission 
Page I - 123LR3364(OI)-1 
.. 
I 
capacity or the execution of any significant agreement or contract as defined in section 
3133-A, subsection 2 upon a finding that the line is reasonably likely to adversely affect 
any transmission and distribution utility or its customers. 
Sec. 4. 35-A MRSA §3132, sub-§6, as amended by PL 2007, c. 148, §5, is 
further amended to read: 
6. 
Commission ordet;; certificate of public convenience. 
In its order, the 
commission shall make specific findings with regard to the need for the proposed 
transmission line. If the commission finds that a need exists, it shall issue a certiflCate of 
public convenience and necessity for the transmission line. If the commission finds that 
rates of consumers in a utility service territory will increase as a foreseeable direct 
I I 
consequence of the operation of the transmission line, the commission may not issue a 
certificate. If the commission orders or allows the erection of the transmission line, the 
order is subject to all other provisions of law and the right of any other agency to approve 
the transmission line. 
A person may submit a petition for and obtain approval of a 
IS 
proposed transmission line under this section before applying for approval under 
municipal ordinances adopted pursuant to Title 3D-A, Part 2, Subpart 6-A; and Title 38, 
section 438-A and, except as provided in subsection 4, before identifying a specific route 
or route options for the proposed transmission line. Except as provided in subsection 4, 
the commission may not consider the petition insufficient for failure to provide 
identification of a route or route options for the proposed transmission line. The issuance 
of a certificate of public convenience and necessity establishes that, as of the date of 
issuance of the certificate, the decision by the person to erect or construct was prudent. 
At the time of its issuance of a certificate of public convenience and necessity, the 
commission shall send to each municipality through which a proposed corridor or 
corridors for a transmission line extends a separate notice that the issuance of the 
certificate does not override, supersede or otherwise affect municipal authority to regulate 
the siting of the proposed transmission line. 
Sec. 5. 35-A MRSA §3136, sub-§2, as amended by PL 2001, c. 608, §2. is 
further amended to read: 
2. Right of eminent domain not applicable. The right of eminent domain granted 
I 
in subsection I does not apply to: 
A. 
Lands or easements located within 300 feet of an inhabited dwellin~ 
B. 
Lands or easements on or adjacent to any developed or undeveloped water 
power; 
C. 
Lands or easements so closely paralleling existing wire lines of other utilities 
that the proposed transmission lines would substantially interfere with service 
rendered over the existing lines, except with the consent of the owners; 
D. 
Lands or easements owned or used by railroad corporations, except as 
authorized pursuant to section 2311; afltl 
E. 
Lands or easements owned by the State:; and 
I 
F. 
Lands or easements associated with the siting, permlttmg, construction or 
operation of any transmission infrastructure that would adversely affect the 
transmission and distribution utility's ratepayers. 
Sec. 6. 3S-A MRSA §3137, sub-§l, as amended by PL 1999, c. 398, Pt. A, §52 
and affected by §§ I 04 and 105, is repealed and the following enacted in its place: 
1. Domestic transmission and distribution utility may transmit electricity inside 
or outside this State. Notwithstanding any limitation imposed by its charter, each 
domestic transmission and distribution utility may transmit electricity and acquire and 
operate anywhere inside or outside this State utility facilities or interests in utility 
facilities of any nature or form used or required to be used in its service to the public, 
II 
except that nothing in this section authorizes a utility to distribute electricity in this State: 
A. In a way that adversely affects the util ity' s ratepayers; or 
B. To any person or within any area, except as otherwise authorized by its charter or 
the laws of this State. 
Sec. 7. Northern Maine Long-term Standard Offer. 
1. 
Creation of Northern Maine Long-term Standard Offer. 
To ensure 
achievement of improved reliability and wholesale and retail competition for northern 
Maine, the Public Utilities Commission, referred to in this section as "the commission," 
shall facilitate the enhancement and reliability of the energy generation infrastructure of 
northern Maine. The commission shall solicit long-term proposals in connection with the 
Maine Public Service Company's long-term standard offer for the years 2009 to 2019, to 
be known as the Northern Maine Long-term Standard Offer, referred to in this section as 
"the standard offer." 
2. Bids. The commission shall solicit long-term standard offer bids in an effort to 
mitigate high energy prices, improve wholesale competition, improve retail competition 
and improve reliability. A person who bids for any part of the standard offer shall 
demonstrate that its proposal addresses the following aspects of energy security in 
northern Maine: 
A. The mitigation of high prices, including a demonstration that the performance of 
its long-term standard offer proposal is likely to be more advantageous to consumers 
than reasonable alternatives, such as a series of shorter standard offers; 
B. The lack of competition, including a demonstration that the performance of its 
long-term standard offer proposal is likely to improve wholesale and retail 
competition in northern Maine; 
C. 
Grid and energy supply reliability, including a demonstration that the 
performance of its long-term standard offer proposal would add to the Northern 
Maine Independent System Administrator, Inc.'s system reliability and mitigate any 
known or anticipated reliability issues in northern Maine; and 
D. 
Regional market development, including the maintenance of existing energy 
generation as well as the incitement of investment in new in-region generation. 
Seventy percent of the energy to be provided by any bidder in supplying standard 
I 
offer load must be supplied by in-region generation to ensure generation remains in 
the Northern Maine Independent System Administrator, Inc. region for long-term 
reliability. 
3. Procedure. The commission shall employ the following procedure with regard to 
soliciting proposals for the standard offer. 
A. In addition to the other standard offer bid options that the commission elects to 
solicit, the commission shall solicit long-term standard offers for northern Maine in 3 
separate parts. 
(I) Part one must be conducted no later than January 1, 2009 and must 
secure energy and capacity in the amounts specified in paragraph B for 
II 
the period March 1,2009 to February 28,2019. 
(2) Part two must be conducted no later than January I, 2009 and must 
secure additional capacity and energy for the period March I, 2009 to 
February 28, 2014 in amounts as specified in paragraph C. 
(3) Part three must be conducted in 2012 and must secure additional 
energy and capacity for the period March 1,2014 to February 28,2019 in 
amounts as specified in paragraph C. 
B. Currently, the standard offer load has a base load requirement of approximately 
megawatts, an intermediate or dispatchable requirement of approximately 22 
megawatts and a load-following requirement of approximately 16 megawatts. Part 
one seeks bids for 2/3 of these 3 separate trenches of energy and capacity as: 
(1) A 20 megawatts ba~ load requirement, 8,7{)0 hOUTS; 
(2) A dispatchable load requirement of aU loads above 20 megawatts md 
below 40 megawatts; and 
(3) A load-following requirement of all load at or above 40 megawatts. 
C. Part 2 and part 3 bidders must bid on the remaining 113 of the standard offer load 
identified in paragraph B. Part two and part three bidders must address the same 
criteria. which may be modified by the commission 10 meet additional public needs. 
Subject to the exception for utility bids in subsection 4, paragraph A, bidders must 
have the qualifications required by state law that are in effect at the time the bid is 
submitted. 
D. The same person may bid on parts one, two and three and trenches 1, 2 and 3 
within each part, but the commission may elect to choose only one or 2 of the parts 
and one or 2 of the trenches within each of the 3 parts. Bidders may condition a bid 
on one part upon acceptance of their bid on one or more other parts or trenches. 
E. 
A bidder must demonstrate that the project sponsor of any new generating 
capacity relied upon to supply the part one, two or three load has the relevant 
property rights, permits and authorizations and construction capability and may 
reasonably obtain financial arrangements to be able to produce electrical energy and 
capacity when needed to supply the products required for part one, two or three. 
I 
F. The commission shall favor proposals that maintain and enhance the reliability of 
existing generation while directly or indirectly enhancing the development of new 
reliable in-region generating capacity. In evaluating standard offer bids and other 
proposals and in comparing such bids to other standard offer bids, the commission 
shall also consider the extent to which standard offer proposals will directly or 
indirectly enhance the development of new transmission capacity interconnecting 
northern Maine with the Independent System Operation-New England grid. 
4. Requirement for bidders for standard offer. The commission shall ensure that 
a bidder for the standard offer: 
II 
IS 
IS 
A. Be an entity, including a utility affiliate, authorized under Maine law to supply 
standard offer service, except that a transmission and distribution utility may submit 
bids in its own name, contingent on the contract and performance becoming the 
obligation of its competitive energy provider affiliate in the event that the utility wins 
one or more of the bids. All costs incurred by a transmission and distribution utility 
in preparing and submitting long-term standard offer bids must be borne by the utility 
and not its ratepayers. The commission shall reject as nonconforming any bid that 
contemplates imposing any generation-related obligation on the utility; 
B. Assume full migration risk; 
C. Bid for any trench and any of parts one, two and three under section 3. Any such 
bid may be provided on the basis of either: 
I 
(I) Fixed cost $/K w-month, plus a $/MWh adder for marginal priced 
energy; 
(2) Fixed cost $/Kw-month, plus a $/MWh adder for energy deliveries 
priced at a generally recognized market index, fuel price index or spot 
market price; or 
(3) Fixed cost $/Kw-month, plus a floor and ceiling price for energy 
priced at a generally recognized market index. Any pricing mechanism, 
including marginal, unit specific or index, used in the proposal must be 
21} 
acceptable to the commission in its sole discretion. To the extent that a 
bidder for part two and three provides a proposal on the basis of any 
I 
option, the part two and three bidder must also provide a fixed price bid 
and the commission may select either bid; and 
D. Satisfy state laws and rules. 
Sec. 8. P&SL 1911, c. 288, §8 is enacted to read: 
Sec. 8. Transmission infrastructure. Notwithstanding any provisions of this 
charter, Central Maine Power Company may not: 
A. Affiliate with any person who owns or operates any transmission infrastructure 
that adversely affects the interests of Central Maine Power Company's ratepayers; 
B. 
Participate in the planning, permitting, construction or operation of any 
transmission infrastructure that adversely affects the interests of the Central Maine 
Power Company's ratepayers; or 
., 
I 
• 
II 
C. 
Participate or maintain membership in any organization whose practices, 
procedures or rules adversely affect the interests of Central Maine Power Company's 
ratepayers. 
Sec. 9. P&SL 1917, c. 203, §10 is enacted to read: 
Sec. 10. Transmission infrastructure. Notwithstanding any provisions of this 
charter, Maine Public Service Company may not: 
A. Affiliate with any person who owns or operates any transmission infrastructure 
that adversely affects the interests of Maine Public Service Company's ratepayers; 
B. 
Participate in the planning, permitting, construction or operation of any 
transmission infrastructure that adversely affects the interests of Maine Public 
Service Company's ratepayers; or 
C. 
Participate or maintain membership in any organization whose practices, 
procedures or rules adversely affect the interests of Maine Public Service Company's 
ratepayers. 
Sec. 10. P&SL 1959, c. 222, §5 is enacted to read: 
Sec. 5. Transmission infrastructure. Notwithstanding any provisions of this 
charter, Bangor Hydro-Electric Company may not: 
A. Affiliate with any person who owns or operates any transmission infrastructure 
that adversely affects the interests of Bangor Hydro-Electric Company's ratepayers; 
B. 
Participate in the planning, permitting, construction or operation of any 
transmission infrastructure that adversely affects the interests of Bangor Hydro-
Electric Company's ratepayers; or 
C. 
Participate or maintain membership in any organization whose practices, 
procedures or rules adversely affect the interests of Bangor Hydro-Electric 
Company's ratepayers. 
SUMMARY 
This bill changes Maine law to clarify and add requirements for approval of siting 
transmission lines in order to protect ratepayers. It removes the state-granted right of 
eminent domain for transmission lines that adversely affect the interests of utility 
ratepayers. It amends private and special laws of the State to make clear that transmission 
and distribution utilities chartered in the State may not engage in activities that are 
adverse to the interests of ratepayers. The bill also attempts to restore the competitive 
market in northern Maine by granting authority and establishing procedures for a northern 
Maine long-term standard offer.