An Act To Enhance Maine's Clean Energy 0ppOItunities
Maine Legislature, Session 124, LD 1647
Committee Amendment CA_A_H675 (House)
Amends: 35-A MRSA §3210-C

COMMITTEE AMENDMENT" It" to H.P. 1175, L.D. 1647, Bill, "An Act To 
Enhance Maine's Clean Energy 0ppOItunities" 
Amend the bill by striking out all of sections 1 to 3 and inserting the following: 
'Sec. 1. 35-A MRSA §3210-C, sub~§l, W is enacted to read: 
F. "Renewable energy credit" means a tradable instrument that represents an amount 
of electricity generated from eligible resources as defined in section 3210, subsection 
2, paragraph B or renewable capacity resources. 
Sec. 2. 35-A MRSA §3210-C, sub-§l, ~G is enacted to read: 
G. "Triennial plan" has the same meaning as in section 10102, subsection 9. 
Sec. 3. 35-A MRSA §3210-C, sub-§3, as repealed and replaced by PL 2009, c. 
415, Pt. A, §21, is amended to read: 
3. 
Commission authol'ity. 
The commission may direct investor-owned 
transmission and distribution utilities to enter into long-term contracts for: 
A. Capacity resources; aH6 
B. 
Any available energy associated with capacity resources contracted under 
paragraph A: 
(1) To the extent necessary to fulfill the policy of subsection 2, paragraph A; or 
(2) 
If the commission determines appropriate for purposes of supplying or 
lowering the cost of standard-offer service or othelwise lowering the cost of 
electricity for the ratepayers in the State. Available energy contracted pursuant to 
this subparagraph may be sold into the wholesale electridty market in 
conjunction with solicitations for standard-offer supply bids7; and 
C. 
Any available renewable energy credits associated with capacity resources 
contracted under paragraph A to the extent the cost of the renewable energy credits is 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT" A" to H.P. 1175, L.D. 1647 
below market value or the purchase of renewable energy credits adds value to the 
transaction. 
If at any time after July 1, 2011 the commission determines that the assessments on 
transmission and distribution utilities under section 10 11 0, subsections 4 and 5 will not 
provide sufficient funds to nieet the energy efficiency program budget allocations 
articulated in the triennial plan approved by the commission pursuant to section 10104, 
subsection 4 or any annual update plan approved by the commission pursuant to section 
10104, subsection 6, the commission may, after providing notification to the, joint 
standing committee of the Legislature having jurisdiction over utilities and energy 
matters, direct investor-owned transmission and distribution utilities to enter into long-
tenn contracts for energy efficiency capacity resources and any available energy 
associated with such resources to the extent necessary to meet the energy efficiency 
program budget allocations articulated in the triennial plan or annual update plan. 
The commission may direct investor-owned transmission and distribution utilities to enter 
into contracts under this subsection only as agents for their customers, only when such 
contracts are in the best interest of 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 impacts 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 service pursuant to section 3212 for investor-owned transmission and 
distribution utilities. 
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The commission may enter into contracts for interruptible, demand response or energy') 
efficiency capacity resources. These contracts are not subject to the rules of the State 
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Purchasing Agent. In a competitive solicitation conducted pursuant to subsection 6, the 
commission shall allow transmission and distribution utilities to submit bids for 
interruptible, or 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, to meet the energy 
efficiency program budget allocations articulated in the triennial plan as approved by the 
commission pursuant to section 10104, subsection 4 or any annual update plan approved 
by the commission pursuant to section 10104, subsection 6 or to lower. customer costs as 
determined by the commission pursuant to rules adopted under subsection 10. 
Unless the commission determines the public interest requires otherwise, a capacity 
resource may not be contracted under this subsection unless the commission determines 
that the capacity resource is recognized as a capacity resource for purposes of any 
regional or federal capacity requirements. 
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. 
COMMITTEE AMENDMENT 
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COMMIITEE AMENDMENT "n "to H.P. 1175, L.D. 1647 
Sec. 4. 35-A MRSA §3210-C, sub-§6, as enacted by PL 2005, c. 677, Pt. C, § 1, 
is amended to read: 
6. 
Competitive solicitation process and contract negotiation. Fe!' Except as 
provided in paragraph A, for purposes of selecting potential capacity resources for 
contracting pursuant to subsection 3, the commission shall conduct a competitive 
solicitation no less often than every 3 years if the commission determines that the likely 
benefits to ratepayers resulting from any contracts entered into as a result of the 
solicitation process will exceed the likely' costs. 
Following review of bids, the 
commission may negotiate with one or more potential suppliers. When only one bid has 
been offered, the commission shall ensure that negotiations are based on full project cost 
disclosure by the potential supplier. The commission shall negotiate contracts that are 
commercially reasonable and that commit all parties to commercially reasonable 
behavior. 
A. 
The commission shall, for purposes of selecting energy efficiency capacity 
resources and available energy associated with such' resources for contracting 
pursuant to subsection 3, conduct a competitive solicitation in accordance with this 
subsection or contract with the Efficiency Maine Trust established in section 10103 
to deliver those resources through a competitive solicitation process administered by 
the trust. 
Sec. 5; 35-A MRSA §3210-C, sub-§7, as repealed and replaced by PL 2009, c. 
415, Pt. A, §22, is amended to read: 
7. Disposition of resources. An investor-owned transmission and distribtition utility 
shall sell capacity resources aOO~ energy or renewable energy credits purchased pursuant 
to subsection 3 or take other action relative to such capacity resources aOO~ energy or 
renewable energy credits as directed by the commission. 
Sec. 6. 35-A MRS A §3210-C, sub-§9, as enacted by PL 2005, c. 677, Pt. C, § 1, 
is amended to read: 
9. 
Contract payments. Contracts Except as provided in paragraphs A and B, 
contracts for capacity aae resources, related energy or renewable energy credits entered 
into pursuant to this section must provide that payments will be made only after 
contracted amounts of capacity aOO resources, related energy or renewable energy credits 
have been provided. 
A. Contracts with the Efficiency Maine Trust established in section 10103 for energy 
efficiency capacity resources and related energy entered into pursuant to this section 
may provide that up to 20% of the total payment be made at the stmi of the contract. 
Such contnicts must provide that the remaining payments will be made only after the 
supplier has demonstrated, according to measurement and verification protocols 
specified in rules adopted by the Efficiency Maine Trust Board pursuant to section 
10105, subsection 5, that physical installations have been completed and contracted 
amounts of capacity resources and related energy have been substantiated. 
B. Contracts with any entity other than the Efficiency Maine Trust established in 
section 10103 for energy efficiency capacity resources and related energy must 
provide that payments will be made only after the supplier has demonstrated, 
according to measurement and verification protocols specified in rules adopted by the 
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COMMITIEE AMENDMENT "A" to H.P. 1175, L.D. 1647 
Efficiency Maine Trust Board pursuant to section 10105, subsection 5, that physical 
installations have been completed and contracted amounts of capacity resources and) 
related energy have been substantiated.' 
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Amend the bill in section 5 in subsection 4 in the first paragraph by striking out all of 
the 2nd sentence from the end (page 3, lines 21 to 23 in L.D.) and inserting the following: 
'Beginning January 1, 2011, the triennial plan must specify the appropriate participation 
of the State in national and regional carbon markets.' 
Amend the bill in section 5 in subsection 4 in paragraph F by striking out all of 
subparagraph (6) (page 5, lines 1 to 3 in L.D.) and inserting the following: 
'(6) Saving residential and commercial heating consumers not less than $3 for 
every $1 of program funds invested by 2020 in cost-effective heating and cooling 
measures that cost less than conventional energy supply;' 
Amend the bill by striking out all of section 6. 
Amend the bill in section 8 in subsection 5 by striking out all of the last blocked 
paragraph (page 6, lines 13 to 30 in L.D.) and inserting the following: 
'For the purposes of this subsection, "gross operating revenue" means revenue derived 
from filed rates, except from sales for resale. The commission may correct any errors in 
the assessments under this subsection by means of a credit or debit to the following year's 
assessment rather than reassessing all utilities in the current year. The commission shall 
determine the assessments under this subsection annually prior to May June 1st and 
assess each utility for its pro rata share for expenditure, including funds for energy 
conservation programs, during the fiscal year beginning July 1st. The commission may 
not shaFge increase any assessment under this subsection until the Legislature has 
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approved the commission's Efficiency Maine Trust's budget in accordance with section, 
++6. +he Following the commission's approval of the triennial plan pursuant to section 
10104, subsection 4 or any update plan pursuant to section 10104, subsection 6, the 
commission shall separately identify present any recommended increase in the 
assessment under this subsection in its presentation of budget recommendations contained 
in any current services budget legislation and any supplemental budget legislation to the 
joint standing committee of the Legislature having jurisdiction over public utilities 
matters pursuant to section 116. Each utility shall pay the assessment charged to that 
utility under this subsection on the same schedule that payment of assessments under 
subsection 4 is required.' 
Amend the bill by striking out all of section 9. 
Amend the bill by inselting after section 10 the following: 
'Sec. 11. Review of long-term contracting. By January 15, 2012, the Public 
Utilities Commission shall report to the joint standing committee of the Legislature 
having jurisdiction over utilities anq energy matters regarding long-term contracts 
implemented pursuant to the Maine Revised Statutes, Title 35-A, section 3210-C, 
including the number, types and lengths of contracts. After review of the commission's 
report, the joinfstanding committee of the Legislature having jurisdiction over utilities 
and energy matters may submit a bill regarding long-term contracts to the Second 
Regular Session of the 125th Legislature. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"A" to H.P. 1175, L.D. 1647 
Sec. 12. 
Transmission and subtransmission voltage level electricity 
customers; participation in energy efficiency programs. The Efficiency Maine 
Trust established in the Maine Revised Statutes, Title 35-A, section 10 103 shall convene 
a working group t~ examine options regarding the participation of electricity customers 
receiving. service at transmission and subtransmission voltage levels in the energy 
efficiency programs of the trust, particularly those programs funded by assessments on 
transmission and distribution utilities. The working group shall,at a minimum, consider 
the opportunity for these customers to self-direct funding and other strategies. The 
Efficiency Maine Trust shaq, at a minimum, invite the Office of the Public Advocate, the 
Public Utilities Commission, representatives of transmission and distribution utilities, 
representatives of industrial energy consumers and representatives of environmental 
interests to participate in the working group. No later than January 31, 2011, the 
Efficiency Maine Trust shall submit a report to the joint standing committee of the 
Legislature having jurisdiction over utilities and energy matters regarding the findings 
and recommendations of the working group. Following receipt and review of the report, 
the committee may submit a bill related to the report to the First Regular Session of the 
125th Legislature.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment makes the following changes to the bill: 
1. It adds a provision to the bill to allow long-term contracts for renewable energy 
credits associated with capacity resources. 
2. It removes the requirement contained in the bill that the Public Utilities 
Commission direct investor-owned transmission and distribution utilities to enter into 
long-term contracts for capacity resources and associated energy. It replaces it with 
permissive language that .authorizes the commission to direct utilities to enter into long-
term contracts for energy efficiency capacity resources and associated energy if the 
commission determines that the assessments on transmission and distribution utilities for 
conservation and energy efficiency will not provide sufficient funds to meet the energy 
efficiency program budget allocations in the triennial plan of the Efficiency Maine Trust 
or an annual update to the triennial plan. It also clarifies that energy efficiency capacity 
resources contracted under this provision may not exceed what is necessary to implement 
the energy efficiency program budget allocations in the triennial plan. The amendment 
also adds language to clarifY that the commission may direct utilities to enter into long-
term contracts only when such contracts are in the best interest of customers. 
3. It changes the provision of the bill regarding competitive solicitation for contracts 
for energy efficiency capacity resources to require the commission to either conduct a 
competitive solicitation for energy efficiency capacity resources and related energy or 
c;ontract with the Efficiency Maine Trust to deliver those resources through a competitive 
solicitation process. 
4. It changes the provision of the bill that exempts contracts for energy efficiency 
capacity resources from the requirement that payment be made only after contracted 
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COMMITIEE AMENDMENT "~,, to H.P. 1175, L.D. 1647 
amounts of capacity and energy are provided. The amendment allows contracts with the 
Efficiency Maine Trust for energy efficiency capacity resources and related energy to 
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provide a 20% up-front payment at the start of the contract, but otherwise requires-
payments only after contracted amounts of capacity and energy have been substantiated. 
5. It removes the requirement in the bill thatthe triennial plan include an examination 
of national and regional carbon markets and instead requires that the plan specify the 
appropriate participation ofthe State in those carbon markets. 
6: It removes the provision of the bill that eliminated the $3 to $1 savings target for 
cost-effective heating and cooling measures in the triennial plan of the Efficiency Maine 
Trust. 
7. It removes the provision of the ,bill that authorizes the Efficiency Maine Trust to 
consult with or retain independent legal counsel. 
8. It amends the provision of the bill regarding the imposition and review of 
additional assessments on transmission and distribution utilities to realize energy' 
efficiency and demand response resources. The amendment specifies that the commission 
may not increase these assessments until the Legislature has approved the budget of the 
Efficiency Maine Trust and requires the commission to present any recommended 
increases in the assessment after its approval of the triennial plan or any annual update 
plan. 
9. It replaces the provision of the bill regarding participation of electricity customers 
receiving service at transmission and subtransmission voltage levels in new conservation 
programs with a directive to the Efficiency Maine Trust to convene a working group to 
examine options regarding the participation of such customers in conservation programs 
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and to submit a report to the joint standing committee of the' Legislature having 
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jurisdiction over utilities and energy matters by January 31, 2011 on this subject. The 
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committee is authorized to submit a bill. 
10. It adds a provision that requires the Public Utilities Commission to report, by 
January 15, 2012, on long-term contracts for capacity resources, including the number, 
types and lengths of contracts. 
FISCAL z.;OH. 1{I:.t,lL1RED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 02/261l0 frac 
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LD 1647 
LR 2478(02) 
An Act To Enhance Maine's Clean Energy Opportunities 
Fiscal Note for Bill as Amended by Committee Amendment "I)" 
Committee: Utilities and Energy 
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Fisca! Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Requiring the Public Utilities Commission (PUC) to report on long-term contracts for capacity resources, to 
participate in a working group, and solicit competitive bids for energy efficiency capacity resources or contract with 
the Efficiency Maine Trust to deliver those resources, as well as potentially requiring the PUC to direct transmission 
and distribution utilities to enter into certain long-term contracts for energy efficiency capacity resources, will result in 
minor cos,ts which can be absorbed within existing budgeted resources. The Efficiency Maine Trust and the Office of 
the Public Advocate can participate in the working group and otherwise meet their commitments under this bill within 
existing budgeted resources. 
LR2478(02) - Fiscal Note - Page I of I