An Act To Create a Smart Grid Policy in the State
Maine Legislature, Session 124, LD 1535
Committee Amendment CA_A_H695 (House)
Amends: 35-A MRSA §102, 35-A MRSA §3143

COMMITTEE AMENDMENT "A " 
to H.P. 1079, L.D. 1535, Bill, "An Act To 
Create a Smart Grid Policy in the State" 
Amend the bill in the emergency preamble in the 2nd whereas paragraph in the first 
line (page I, line 3 in L.D.) by 'striking out the following: "unified" and inserting the 
following: 'comprehensive' 
Amend the bill in the emergency preamble in the 2nd whereas paragraph in the last 
line (page I, line 5 in L.D.) by striking out the following: "unified" and inseliing the 
following: 'comprehensive' 
Amend the bill in the emergency preamble by inserting after the 5th whereas 
paragraph the following: 
'Whereas, smali grid functions hold great promise to reduce costs for consumers by 
improving efficiency and enhancing reliability for the benefit of ratepayers and the 
general public, and smart grid applications that are available now to serve the needs of 
customers in the State and other public interests should be implemented in a timely and 
responsible manner in consideration of all relevant factors; and' 
Amend the bill in the emergency preamble in the 6th whereas paragniph in the first 
line (page I, line 14 in L.D.) by striking out the following: "unified" and inserting the 
following: 'comprehensive' 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 35-A MRSA §102, sub-§13, as amended by PL 1999, c. 579, §3, is 
fUliher amended to read: 
13. Public utility. "Public utility" includes every gas utility, natural gas pipeline 
utility, transmission and distribution utility, telephone utility, water utility and ferry, as 
those terms are defined in this section, and each of those utilities is declared to be a public 
utility. "Public utility" does not include the operation of a radio paging service, as that 
term is defined in this section, or mobile telecommunications services unless only one 
Page I - 124LR2458(02)-1 
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COMMITTEE AMENDMENT "A" to H.P. 1079, L.D. 1535 
entity or an affiliated interest of that entity, as defined in section 707, subsection I, 
paragraph A, exclusively controls the use of the radio frequency spectrum assigned by the 
Federal Communications Commission to provide mobile. service to the service area. 
"Public utility" includes a smart grid coordinator as defined in section 3143, subsection l, 
paragraph B. 
Nothing in this subsection precludes: 
A. 
The jurisdiction, control and regulation by the commission pursuant to private 
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and special act of the Legislature; 
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B. 
The commission's jurisdiction and control over and regulation of a public utility 
that provides, in addition' to other services, 
radio paging service or mobile 
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telecommunications services; 
C. 
The commission's jurisdiction and control over and regulation of basic exchange 
telephone service offered by a provider of mobile telecommunications services if, 
after investigation and hearing, the commission determines that the provider is 
engaged in the provision of basic exchange telephone service; and 
D, 
Negotiations for, or negates agreements or arrangements existing on the 
effective date of this paragraph relating to, rates, terms and conditions for 
interconnection provided by a telephone utility to a company providing radio paging 
or mobile telecommunications services. 
Sec. 2. 35-A MRSA §3143 is enacted to read: 
§3143. Declaration of policy on smart grid infrastructure 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
"Smart grid" means the integration of infonnation and communications 
innovations and infrastructure with the electric system to enhance the efficiency, 
reliability and functioning of the system through smart grid functions. 
B, 
"Smart grid coordinator" means an entity, authorized by the commission in 
accordance with subsection 5, that manages access to smart grid functions and 
associated infrastructure, technology and applications within the service territory of a 
transmission and distribution utility. 
C. 
"Smart grid functions" means those functions that advance the policy of the 
United States as specified in the federal Energy Independence and Security Act of 
2007, Public Law 110-140, Section 1301, including functions that enable consumers 
to access information about and to manage and adjust their electricity consumption or 
to generate and store electricity and functions specified in Section 1306(d) of that 
Act. 
2. Legislative findings. The Legislature finds that: 
A. The cost of electricity to consumers in this State is high in comparison to costs in 
similar markets and impedes economic development; 
B. The State has recognized the consequences of climate change and has committed 
to policies to reduce emissions of greenhouse gases; 
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COMMITIEE AMENDMENT"A " to H.P: \079, L.D. 1535 
C. 
The State's electric grid and long-term infrastructure investment are vital to 
continued security and economic development, and smart grid functions will deliver 
electricity from suppliers to consumers using modern technology to increase 
reliability and reduce costs in a way that saves energy and to enable greater consumer 
choice; 
D. The State currently lacks a comprehensive smart grid policy but faces critical 
decisions regarding the implementation of smart grid functions and associated 
infrastructure, technology and applications, and the commission and the Legislature 
will play central roles in making those decisions; and 
E. 
It is vital that a smart grid policy be developed in order to ensure that all 
ratepayers and the State as a whole are afforded the benefits of smart grid functions 
and associated infrastructure, technology and applications. 
3. 
Smart grid policy;· goals. 
In order to improve the overall reliability and 
efficiency of the electric system, reduce ratepayers' costs in a way that improves the 
overal I efficiency of electric energy resources, reduce and better manage energy 
consumption and reduce greenhouse gas emissions, it is the policy of the State to promote 
in a timely and responsible manner, with consideration of all relevant factors, the 
development, implementation, availability and use of smart grid functions and associated 
infrastructure, technology and applications in the State through: 
A. 
Increased use of digital information and control technology to improve the 
reliability, security and efficiency of the electric system; 
B. 
Deployment and integration into the electric system of renewable capacity 
resources, as defined in section 3210-C, subsection I, paragraphE, that are 
interconnected to the electric grid at a voltage level less than 69 kilovolts; 
C. 
Deployment and integration into the electric system of demand response 
technologies, demand-side resources and energy-efficiency resources; 
D. 
Deployment of smart grid technologies, including real-time, automated, 
interactive technologies that optimize the physical operation of energy-consuming 
appliances and devices, for purposes of metering, communications concerning grid 
operation and status and distribution system operations; 
E. Deployment and integration into the electric system of advanced electric storage 
and peak-reduction technologies, incIud ing plug-in electric and hybrid electric 
vehicles; 
F. 
Provision to consumers of timely energy consumption information and control 
options; and 
. 
O. Identification and elimination of barriers to adoption of smart grid functions and 
associated infrastructure, technology and applications. 
It is the policy of the State to promote the development, implementation, availability and 
use of smart grid functions in accordance with this subsection in a manner that is 
consistent with applicable standards for reliability, safety, security and privacy and that 
takes into account the implementation of smart grid functions in other jurisdictions. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1079, L.D. 1535 
The commission may adopt rules regarding the implementation of smart grid functions in 
the State in accordance with this subsection, including, but not limited to, rules regarding 
cybersecurity and protection of consumer privacy, and access to smart grid infrastructure 
and information, including, but not limited to, open access issues, coordination between 
smart grid users and methods to address financial disincentives for transmission and 
distribution utilities to promote smart grid functions. 
Rules adopted pursuant to this 
subsection are routine technical rules as described in Title 5, chapter 375, subchapter 2-A. 
4. Resource assessment policy. In order to meet the goals of the smart grid policy 
as specified in subsection 3, it is the policy of the State that all available energy resources 
be assessed, including but not limited to the following types of resources: 
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A. Energy efficiency; 
B. Demand management, including but not limited to establishment of time-of-use 
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tariffs and performance-based rates; 
C. Renewable resources, as defined in section 3210, subsection 2,'paragraph C; 
D. Energy resources, other than those listed in paragraph C, that are located in the 
State and are interconnected to the electric grid at a voltage level of less than 69 
kilovolts; and 
E. Transmission lines for which a certificate of public convenience and necessity is 
required under section 3 132, subsection 2. 
5. Smart grid coordinator; authorization by the Public Utilities Commission; 
rules. Upon petition, the commission shall open an adjudicatory proceeding to determine 
whether it is in the public interest of the State to have one or more smart grid coordinators 
in order to achieve the pumoses of and implement the policies specified in this section. 
If, in an adjudicatory proceeding conducted pursuant to this subsection, the commission 
finds that it is in the public interest, the commission may adopt, by rule or as part of the 
adjudicatory proceeding, standards regarding smart grid coordinators, inCIuding but not 
limited to: 
A. Eligibility, qualification and selection criteria; 
B. Duties and functions; 
C. 
The application or exemption from any provisions of this Title otherwise 
applicable to public utilities; 
D. 
The relationship between a smart grid coordinator and a transmission and 
distribution utility; 
E. Access to information held by the smart grid coordinator by 2nd and 3rd parties; 
and 
F. Data collection and reporting. 
Pursuant to standards adopted by rule or in an adjudicatory proceeding pursuant to this 
subsection, the commission may authorize no more than one smart grid coordinator 
within each transmission and distribution utility service territory. 
A smart grid 
coordinator authorized under this subsection may' operate as a transmission and 
distribution utility, under a commission-approved contract with a transmission and 
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COMMIlTEE AMENDMENT" A" Lo H.P. 1079, L.D. 1535 
distribution utility or in some other manner approved by the commission. Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
6. 
Transition plan; displaced employees. 
If an investment in smart grid 
infrastructure by a transmission and distribution utility will lead to the displacement of20 
or more employees within a 3-year period, the transmission and distribution utility must 
file a transition plan for the displaced employees with the commission for approval and 
may not displace those employees unless the commission has approved a transition plan 
in accordance with this subsection. 
A. If a transition plan filed with the commission has been agreed to by a collective 
bargaining agent representing the employees to be displaced, the commission must 
approve the plan. If a transition plan filed with the commission has not been agreed to 
by a collective bargaining agent representing the employees to be displaced, the 
commission may approve that plan only if the plan: 
(I) 
Prioritizes the transition of the employees to employment within the 
transmission and distribution utility, to the extent feasible; 
(2) Provides funds for worker education, training and support, including but not 
limited to tuition, fees, 
books, supplies, tools, 
equipment, child care, 
transportation and other assistance needed to obtain relevant remedial or 
prerequisite education or training, and maximizes the extent to which such 
education and training can be pursued while employed rather than after 
termination of employment; 
(3) Demonstrates appropriate coordination with the Department of Labor; and 
(4) Prevents unnecessary retraining and public assistance costs to the State, to 
the extent feasible. 
B. In applying for federal or other grants for workforce training to support smart grid 
implementation, the commission, the Department of Labor, the Efficiency Maine 
Trust and any other agency or instrumentality of the State shall, to the extent 
permissible and feasible under the terms of the grant, give priority to assisting 
employees that are displaced as a result of the investment in smart grid infrastructure. 
C. The commission shall permit a transmission and distribution utility to adjust its 
rates to recover costs incurred pursuant to this subsection. 
For purposes of this subsection, "displaced employee" means an employee who is 
terminated from employment with a transmission and distribution utility; reduced to less 
than 75% of the hours traditionally required for the employee's position; involuntarily 
transferred to another position within the utility for less pay; or transferred to another 
position within the utility at a site more than 50 miles away from the employee's current 
site of employment. 
7. Compliance with safety, security and reliability standards. In implementing 
the policies specified in this' section, the commission and other agencies and 
instrumentalities of the State shall ensure that applicable regional, national and 
international grid safety, security and reliability standards are met. The commission and 
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COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"~" to H.P. 1079, L.D. 1535 
other agencies and instrumentalities of the State shaH seek to cause standards that 
promote cost-effective technologies and practices supporting smart grid functions to be 
integrated into national and international grid safety, security and reliability standards. 
8. Cost recovery. The commission shall, upon petition, permit a transmission and 
distribution utility to adjust its rates to recover the utility's prudently incurred incremental 
costs associated with implementing smart grid functions and associated infrastructure, 
technology and applications or otherwise taking reasonable actions consistent with the 
policies of this section, to the extent that the costs are not already reflected in the utility's 
rates and the adjustment does not result in rates that are unjust or unreasonable. A grant 
by a utility in an amount approved by the commission to the University of Maine System 
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for smart grid research and development is deemed to be a prudently incuned incremental 
cost associated with implementing smart grid functions. 
9. Report. 
The commissiori, as part of its annual report pursuant to section 120, 
shall include a report on the progress of the State in achieving the pumoses of this 
section. The commission may include in its report any recommendations for changes to 
law to promote the purposes of this section. 
10. Consumer education. A transmission and distribution utility that implements 
smart grid functions sha.IL to the extent thecomll1isslondetermines appropriate, provide 
information to customers about the purpose and goals of smart grid functions, the ways in 
which slTIaJi grid functions; including but not limited to time-of-use pricing, may involve 
customer interaction and how the implementation of smart grid functions can benefit 
customers. 
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11. 
Savings clause. 
Nothing in this section limits any other authority of the 
commission with respect to smart grid implementation. 
Sec. 3. Report. As part of the report regarding smart grid policy implementation 
that is due February I, 2011, pursuant to the Maine Revised Statutes, Title 35-A, section 
3143, subsection 9, the Public Utilities Commission shall report on the results or progress 
of any proceeding conducted pursuant to Title 35-A, section 3143, subsection 5 and any 
recommendations regarding smart grid policy to the joint standing committee of the 
Legislature having jurisdiction over utilities and energy matters. Following review of the 
commission's recommendations, the joint standing committee may submit a bill regarding 
smart grid policy to the First Regular Session of the 125th Legislature.' 
SUMMARY 
This amendment makes the following changes to the bill. 
I. It clarifies the definition of "smart grid," adds a definition of "smart. grid 
coordinator" and amends the definition of "public utility" to include a smart grid 
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coordinator. 
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2. It amends the bill regarding the State's smart grid policy to focus on the smart grid 
as a means of improving reliability and efficiency and reducing ratepayer costs. 
3. It authorizes the Public Utilities Commission to adopt rules regarding the 
implementation of smart grid functions in the State and specifies those rules as routine 
technical rules. 
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COMMITfEE AMENDMENT" A " 
to H.P. 1079, L.D. 1535 
4. It removes the provision of the bill that specifies a hierarchy of energy resources to 
be assessed in the implementation of smart grid policy in the State. It also removes the 
provision in the bill that requires the commission, in proceedings involving the review of 
a transmission and distribution utility's system investments or upgrades, to ensure that the 
utility has considered the deployment of technologies that support smart grid functions in 
accordance with the above-mentioned hierarchy of energy resources. 
5. It removes the provision of the bill that requires the commission to examine the 
need for and feasibility of creating or designating a smart grid company in each 
transmission and distribution utility service territory. Instead, the amendment includes a 
provision that requires the commission, upon petition, to open an adjudicatory proceeding 
to determine whether it is in the public interest of the State to authorize a smart grid 
coordinator to manage access to smart grid functions and associated infrastructure, 
technology and applications within a service telTitory of a utility. Upon a finding that it is 
in the public interest, the amendment authorizes the commission to adopt, by rule or as 
pali of the adjudicatory proceeding, standards regarding smart grid coordinators. Pursuant 
to sllch standards, the commission is permitted to authorize no more than one smart grid 
coordinator within each transmission and distribution utility service territory. 
6. It adds a provision to require a transmission and distribution utility to file and have 
approved by the commission a transition plan for displaced employees when an 
investment in smart grid infrastructure by a transmission and distribution lltility will lead 
to the displacement of20 or more employees within a 3-year period. 
7. It adds a provision requiring transmission and distribution utilities to provide 
customer education regarding smart grid functions and how they can benefit customers. 
8. It adds a provision to clarify that this law does not limit any other authority of the 
commission with respect to smali grid implementation. 
FISCAL .\OTE REQGlRED 
!§ee at.t~.~.~edL 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/03/10 Mac 
LD 1535 
LR 2458(02) 
An Act To Create a Smart Grid Policy in the State 
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 
Minor cost increase - General Fund 
Additional costs to the Public Utilities Commission to conduct adjudicatory proceedings on petitions regarding smart 
grid coordinators, to approve smart grid transition plans, to adjust rates of transmission and distribution utilities for 
reasonable smart grid costs and to report annually on related progress in acheiving the purposes of the bill can be 
absorbed within existing budgeted resources. 
Additional costs to the Department of Labor associated with coordinating with transmission and distribution utilities 
on certain transition plans can be absorbed within existing budgeted resources. 
LR24S8(02) - Fiscal Note - Page 1 of 1 
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