An Act To Provide Additional Flexibility for the Funding of Infrastructure Improvements by Consumer-owned Water Utilities
Maine Legislature, Session 125, LD 0909
Committee Amendment CA_A_H126 (House)

COMMITTEE AMENDMENT 41" to H.P. 668, L.D. 909, Bill, "An Act To 
Provide Additional Flexibility for the Funding of Infrastructure Improvements by 
Consumer-owned Water Utilities" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 35-A MRS A §6104-A, sub-§§2, 3 and 5, as enacted by PL 2009, c. 
237, §2, are amended to read: 
2. 
Application 
of this 
section; 
qualification; 
supporting materials. 
Notwithstanding section 310 or section 6104, any consumer-owned water utility that 
meets the requirements of this subsection may elect to increase rates pursuant to this 
section. To qualify for a rate increase under this section, a consumer owned water utility 
must have negative net income in the :6 consecutive fiscal years immediately preceding 
the year in which the rate increase is proposed. The consumer owned water utility must 
file 'llith the commission supporting documentation demonstrating-the-2 years of negative 
net income as provided in this subsection. 
A. A consumer oVllled water utility that is (equired to file balance sheets under 
section 504, shall file copies for the 3 most recent years of the balance sheet together 
'lAth other annual financial information the commission may prescribe to be filed 
pursuant to section 504, subsection 2, including the operating statement or other 
statements shovling annual operating income and expenses. 
B. l\ consumer ovmed ',yater utility that is excused from filing balance sheets 
pursuant to section 504, subsection 3 shall file copies for the 3 most recent years of 
financial statements from financial audits or reviev/s of the utility or other 
information documenting the operating income and expenses of the utility considered 
acceptable by the commission. 
The consumer-owned water utility shall file its proposed rate increase, in accordance with 
the limits established in subsection 3, along with a copy of the required documentation all 
materials required to be submitted under section 6104, subsection 4-A supporting the 
COMMITTEE AMENDMENT 
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... , 
~%' 
COMMITTEE AMENDMENT "A" to H.P. 668, L.D. 909 
proposed rate increase with the commission and the Public Advocate at least 30 days 
prior to the public meeting required under subsection 4. 
A copy of the required 
documentation materials supporting the proposed rate increase must be made available to 
customers for examination at the offices of the utility for at least 30 days prior to the 
public meeting. 
The utility shall promptly provide any readily available relevant 
additional material or information requested by a customer, the commission or the Public 
Advocate. 
3. Maximum· rate increase. The maximum rate increase that a consumer-owned 
water utility may propose under this section: 
A. Is ~ 
3% of current rates if the utility is a large consumer-owned water utility~ 
The cumulative total of rate increases under this paragraph may not exceed 10% over 
years; 
B. Is B-% 5% of current rates if the utility is a medium consumer-owned water 
utility. The cumulative total of rate increases under this paragraph may not exceed 
15% over 5 years; and 
C. Is ~ 
7.5% of current rates if the utility is a small consumer-owned water utility. 
The cumulative total of rate increases under this paragraph may not exceed 20% over 
years. 
The cumulative total of rate increases under this section may not exceed 10% over 5 
~ 
5. Notice of proposed rate increase and public meeting. The consumer-owned 
water utility shall, at least 14 days prior to the public meeting required under subsection 
4, publish a notice of the proposed rate increase and the meeting, including the date, time, 
place and purpose of the meeting, in a newspaper of general circulation in the area 
encompassed by the consumer-owned water utility and give one notice of the proposed 
rate change and the date, time, place and purpose of the meeting to each of its customers. 
The published and individual notices must include a statement describing the amount of 
the rate increase and the percentage change for each customer class, the customer's right 
to request information relating to the present and proposed rates and the availability of 
assistance from the Public Advocate. The published and individual notices must inform 
customers of the 10 person complaint process under section 1302. Copies of the notice 
must be sent to the commission and the Public Advocate at least 14 days prior to the 
meeting. 
Sec. 2. Review and report. The Public Utilities Commission shall convene a 
work group that includes representatives of small consumer-owned water utilities and the 
Public Advocate to examine ways of ensuring that the capital requirements of these water 
utilities are provided for in an adequate and appropriate manner. The commission shall 
report the results of the examination and any recommendations for changes to laws to the 
Joint Standing Committee on Energy, Utilities and Technology by January 15,2012. The 
Joint Standing Committee on Energy, Utilities and Technology may report out a bill to 
the Second Regular Session of the 125th Legislature relating to the subJect matter of the 
report.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A 
"to H.P. 668, L.D. 909 
SUMMARY 
This amendment replaces the concept draft. It modifies the streamlined rate-making 
process available to consumer-owned water utilities by: 
1. Repealing the requirement that to qualify for a rate increase under the streamlined 
rate-making process, a consumer-owned water utility must have negative net income in 
the 2 consecutive fiscal years immediately preceding the year in which the rate increase is 
proposed; 
2. Repealing the requirement that a consumer-owned water utility proposing to use 
the streamlined rate-making process file with the Public Utilities Commission balance 
sheets or financial statements for the 3 most recent years together with other annual 
financial information the commission may prescribe; 
3. Clarifying that the consumer-owned water utility must file with the Public Utilities 
Commission and the Public Advocate all materials supporting the rate increase that are 
required to be filed under the Maine Revised Statutes, Title 35-A, section 6104, 
subsection 4-A; 
4. Repealing the requirement that when the consumer-owned water utility advertises 
the public meeting on its rate increase the notices must inform customers of the 10-person 
complaint process under Title 35-A, section 1302; and 
5. Increasing the amount of rate increases that may be accomplished through the 
streamlined rate-making process. Under the amendment: 
A. A consumer-owned water utility that has total revenues of at least $750,000 may 
increase its rates up to 3% in any single ratemaking and up to 10% over 5 years; 
B. A consumer-owned water utility that has total revenues less than $750,000 but at 
least $250,000 may increase its rates up to 5% in any single ratemaking and up to 
15% over 5 years; and 
C. A consumer-owned water utility that has total revenues of less than $250,000 may 
increase its rates up to 7.5% in any single ratemaking and up to 20% over 5 years. 
The bill also directs the Public Utilities Commission to convene a work group to 
examine ways of ensuring that the capital requirements of these water utilities are 
provided for in an adequate and appropriate manner. The commission shall report the 
results of the examination and any recommendations for changes to laws to the Joint 
Standing Committee on Energy, Utilities and Technology by January 15,2012. The Joint 
Standing Committee on Energy, Utilities and Technology may report out a bill to the 
report. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/19111 frac 
LD909 
LR 1162(02) 
An Act To Provide Additional Flexibility for the Funding of Infrastructure Improvements by 
Consumer-owned Water Utilities 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment ,~" 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Any additional costs to the Public Utilities Commission (PUC) and the Office of Public Advocate for participation in a 
work group to examine ways of ensuring that capital requirements for certain water utilities are met in an appropriat~ 
manner can be absorbed within existing budgeted resources. 
LRI162(02) - Fiscal Note - Page 1 of I