An Act To Provide for Fairness and Accuracy in Utility Rate Setting
Maine Legislature, Session 123, LD 2104
Committee Amendment CA_A_H732 (House)

COMMITTEE AMENDMENT" R" to H.P. 1490, L.D. 2104, Bill, "An Act To 
Provide for Fairness and Accuracy in Utility Rate Setting" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 35-A MRS A §9103, sub-§l, as enacted by PL 1993, c. 638, §2, is 
amended to read: 
1. 
Alternative regulation; period; starting point. 
For the The period of the 
alternative form of regulation, '""hich may not be less than 5 years nor exceed 1 0 years 
without affirmative reauthorization by the commission, ratepayers as a '",hole, and 
residential and small business ratepayers in particular, may not be required to pay more 
for local telephone services as a result of the implementation of an alternative form of 
regulation than they would under traditional rate base or rate of return regulation. Prior 
to the adoption of a new or replacement alternative form of regulation or renewal of any 
existing alternative form of regulation, when the alternative form of regulation includes a 
provision prohibiting the commission or the utility from initiating a rate case for a set 
period of time, the commission shall, in order to ensure that rates at the starting point of 
the alternative form of regulation are just and reasonable, conduct a revenue requirement 
and earnings review pursuant to the standards of section 301. In conducting such a review 
under this subsection, the commission, at its discretion, may conduct the review in a 
manner designed to minimize the cost of the review. 
Sec. 2. Application. 
In accordance with the Maine Revised Statutes, Title I, 
section 302, this Act does not apply to any proceeding relating to an alternative form of 
regulation pending before the Public Utilities Commission on the effective date of this 
Act.' 
SUMMARY 
This amendment is the majority report of the committee. The amendment removes 
the provision in the bill regarding penalties for utility misconduct and removes the 
COMMITTEE AMENDMENT 
I 
II 
COMMITTEE AMENDMENT "/J' to H.P. 1490, L.D. 2104 
provISIon in the bill regarding refunds to local telephone customers to remedy past 
excessive rates. The amendment adds a provision to the bill to repeal language in current 
law governing an alternative form of regulation that requires the Public Utilities 
Commission to ensure that, for the period of the alternative form of regulation, ratepayers 
may not be required to pay more for local phone service under the alternative form of 
regulation than they would have under traditional regulation. The amendment preserves 
the provision in the bill that requires the Public Utilities Commission to conduct a 
revenue requirement and earnings review of a telephone utility prior to the adoption or 
renewal of an alternative form of regulation and clarifies that this requirement applies 
when the alternative form of regulation includes a provision prohibiting a rate case for a 
set period of time. Finally, the amendment provides an application section to specify that 
the requirements established in this legislation do not apply to any alternative form of 
regulation proceeding that is pending on the effective date of this Act. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/08/08 Mac:.. 
LD 2104 
LR 3304(02) 
An Act To Provide for Fairness and Accuracy in Utility Rate Setting 
Fiscal Note for Bill as Amended by Committee Amendment ,,~ " 
Committee: Utilities and Energy 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
The additional costs associated with the requirements set forth in this bill can be absorbed by the Public Utilities 
Commission utilizing existing budgeted resources. 
LR3304(02) - Fiscal Note - Page 1 of 1