An Act To Ensure Electric Capacity To Serve Maine Consumers
Maine Legislature, Session 124, LD 1430
Committee: Utilities and Energy
Sponsors: BOWMAN
Amends: 35-A MRSA §3210-C

MAINE STATE LEGISLATURE 
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124th MAINE LEGISLATU 
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Legislative Document 
No. 1430 
S.P.514 
In Senate, April 7, 2009 
An Act To Ensure Electric Capacity To Serve Maine Consumers 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator BOWMAN of York. 
P""ll..'d 1"1 r~L·\.:k·d papL'! 
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JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRSA §3210-C, sUb..;§l, '1fA, as arriended by PL 2007, c. 293, § 1, 
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is further amended to read: 
A 
"Capacity resource" means any renewable' capacity resource, distributed 
generation resource, nonrenewable capacity resource or interruptible, demand 
response or energy efficiency capacity resource. 
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Sec. 2. 35-A MRSA §3210-C, sub-§l, 4flA-2 is enacted to read: 
A-2. "Capability responsibility" means the amount of electric generation capacity 
required to meet the needs of electricity users within the State, including amounts 
needed to serve as a reserve margin sufficient to satisfy the reliability criteria of a 
national electric reliability council and an organization that assesses electric 
reliability. 
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Sec. 3. 35-A MRSA §3210-C, sub-§l, 4flA-3 is enacted to read: 
A-3. "Distributed generation resource" means a generating unit or combination of 
generating units that are interconnected with the electric grid of a transniission. and 
distribution utility in this State at a voltage level ofless than 69 ldlovolts. 
Sec. 4. 35-A MRSA §3210-C, sub-§2, as enacted by PL 2005, C. 677, ·Pt. C, § 1, 
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is amended to read: 
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2. 
Policy; goals. 
It is the policy of this State that determinations relating to 
capability responsibility, 'reserved to the states by the Federal Power Act, 16 United 
States Code, Section791 a, et seq., must be exercised by the State and that the tyPes and 
amounts of various capacity resources considered appropriate to fulfill the capability 
responsibility of the State must be determined by the State. The following goals support 
the State's capability responsibi'lity policy: 
A. +Hat To increase by 10% by 2017 the share of new renewable capacity resources 
as a percentage of the total capacity resources in this State on December 31,2007 
increase by 10% by 2017 and tfiat, to the extent possible, to effectuate the increase 
eeetIf in uniform annual increments; 
B. 
To reduce electric prices and price volatility for the State's electricity consumers 
andto reduce greenhouse gas emissions from the electricity generation sector; aHfi 
C. 
To develop new capacity resources to reduce demand or increase capacity so as 
to mitigate the effects of any regional or federal capacity resourcemandates7; and 
D.' To support the integrated use of demand response programs and distributed 
generation resources to fulfill capability responsibility. 
Sec. 5. 35-A MRSA §3210-C, sub-§3, as amended by PL 2007, c. 575, §2 and c. 
656, Pt. B, §2, is repealed and the following enacted in its place: 
3. 
Commission authority. 
The comrrusslOn may direct investor-owned 
transmissIon and distribution utilities to enter into long-term contracts for: 
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A. Capacity resources; and 
B. Available energy associated with capacity resources contracted under paragraph 
A: 
( I) To the extent necessary to meet the goals in subsection 2, paragraph A; or 
(2) 
If the conmussion determines appropriate for purposes of supplying or 
lowering the cost of standard-offer service or otherwise lowering the cost of 
electricity forthe ratepayers in the State. Available energy contracted pursuant to 
this subparagraph may· be sold into the wholesale electricity market in 
conjunction with solicitations for standard-offer supply bids. 
The commission may direct investor-owned transmission and distribution utilities to enter 
into contracts under this subsection only as agents for their customers and only in 
accordance with this section. The commission may permit, but may not require, investor-
owned transmission and distribution utilities to enter into contracts for differences that are 
designed and intended to buffer ratepayers in the State from potential negative effects· 
from transmission development. To the greatest extent possible, the commission shall 
develop procedures for long-term contracts for investor-owned transmission and 
distribution utilities under this subsection having the same legal and financial effect as the 
. procedures used for standard-offer se~ice pursuant to section 3212 for investor-owned 
transmission and distribution utilities. 
The commission shall enter into contracts for interruptible, demand response or energy 
efficiency capaCity resources. These contracts are not subject to the rules of the State 
Purchasing Agent. In a competitive solicitation conducted pursuant to subsection 6, the 
commission shall allow. transmission and distribution utilities to submit bids for· 
interruptible, demand response or energy efficiency capacity resources. 
Capacity resources contracted under this subsection may not exceed the amount 
necessary to ensure the reliability of the electric grid of this State or to lower customer 
costs as determined by the commission pursuant to rules· adopted. under subsection 10. 
The commission may determine capability responsibility by reference to that developed 
by the Independent System Operator New England regional transmission organization, or 
its successor organization, for the period being considered. 
The commission shall ensure that any long-term contract authorized under this subsection 
is consistent with the State's goals for greenhouse· gas reduction under Title 38, section 
and the regional greenhouse gas initiative as described in the state climate action plan 
required in Title 38, section 577. 
Sec; 6. 35-A MRSA §3210-C, sub-§4, 1ijfB; as enacted by PL 2005, c. 677, Pt. C, 
§ 1, is amended to read: 
B. Among capacity resources meeting the standard in paragraph A, the commission 
shall choose among capacity resources in the following order of priority: 
(1) New i.nterruptible Interruptible, demand response or energy efficiency 
capacity resources located in this State; 
(2) New renewable capacity resources located in this State; 
(3) New capacity resources with no net emission of greenhouse gases; 
(4) New nonrenewable capacity resources located in this State. The commission 
shall give preference to new nonrenewable capacity resources with no net .. 
emission of greenhouse gases; . 
(5) Capacity resources that enhance the reliability of the electric grid of this 
State. The commission shall give preference to capacity resources with no net 
emission of greenhouse gases; and 
(6) Other capacity resources. 
SUMMARY 
. This bill: 
.1. 
Amends the laws governing public utilities to define "capacity resource" to 
include distributed generation resource; 
2. Specifies that deterininations relating to capability responsibility, which is defined 
as the amount of electrIc generation capacity required to meet the needs of electricity 
users within the State, must be made by the State; 
3. Establishes a goal of supporting the integrated use of demand response programs 
and distributed generation resources in order to fulfill capabili~y responsibility; and 
4. Amends the law to require, rather than permit, the Public Utilities Commission to 
contract for capacity resources consisting of interruptible, demand response or energy 
efficiency capacity. 
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