An Act To Create Fair and Open Competition in Line Extension Construction
Maine Legislature, Session 125, LD 0935
Committee: Energy, Utilities and Technology
Sponsors: GUERIN, BICKFORD, CRAY, DUNPHY, EDGECOMB, ESPLING, JOHNSON, LIBBY, MAKER
Amends: 35-A MRSA §315

Legislative Document 
No. 935 
H.P. 695 
House of Representatives, March 8, 2011 
An Act To Create Fair and Open Competition in Line Extension 
Construction 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative GUERIN of Glenburn. 
Cosponsored by Representatives: BICKFORD of Auburn, CRAY of Palmyra, DUNPHY of 
Embden, EDGECOMB of Caribou, ESPLING of New Gloucester, JOHNSON of Eddington, 
LIBBY of Waterboro, MAKER of Calais. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §315 is enacted to read: 
§315.  Transmission and distribution utility line extension construction 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Line" has the same meaning as in section 314, subsection 1, paragraph A. 
B.  "Make-ready work" means work necessary to connect a line extension to existing 
utility infrastructure. 
2.  Standards for charges for line extension construction.  The commission shall 
establish by rule standards for charges by transmission and distribution utilities for line 
extensions.  The commission shall require that charges be based on actual costs, including 
but not limited to tree cutting, ledge drilling and other labor, materials and equipment 
costs, and must include an additional amount established by the commission as a 
reasonable rate of return.  The commission shall ensure that any contributions by a 
telephone utility to a transmission and distribution utility's line extension construction 
costs are not included in those charges.  The commission shall remove any subsidy 
concerning line extension construction costs from the telephone ratepayers, and any costs 
charged by a telephone company for line extension construction must be actual costs.  A 
transmission and distribution utility shall provide cost estimates and shall charge for line 
extensions in accordance with the standards established by the commission, shall 
annually update its charges to account for cost changes and shall report its charges to the 
commission for review for consistency with the standards. 
3.  Cost recovery.  Any cost associated with construction of a line extension that is 
not recovered by a transmission and distribution utility through its charges established in 
accordance with subsection 2 must be borne by the utility and may not be recovered from 
ratepayers. 
A.  Any undercollected cost associated with construction of a line extension 
constructed after 2000 that has been recovered by a transmission and distribution 
utility from ratepayers must be returned to ratepayers and borne by the utility in 
accordance with rules adopted by the commission. 
4.  Make-ready work.  In accordance with rules adopted by the commission, a 
transmission and distribution utility shall charge nonresidential customers the actual costs 
of all make-ready work.  A transmission and distribution utility may not charge a 
residential customer for make-ready work. 
5.  Customer service requirements.  The commission by rule shall establish 
customer service standards that a transmission and distribution utility must meet in 
undertaking line extensions.  The standards must include: 
A.  Information that must be provided to the customer on initial contact, including 
information about the customer's rights and options with respect to the construction 
of a line extension; and 
B.  Time frames for undertaking site visits, providing a cost estimate and undertaking 
construction, inspection and final connection of the line extension. 
The commission may assess penalties pursuant to section 1508-A for a violation of 
standards established under this subsection. 
6.  Contribution in aid of construction.  The commission shall by rule establish 
standards for a transmission and distribution utility's accounting of line extension 
construction costs, which must include all actual costs and the allowed rate of return 
under subsection 2.  To the extent allowable under federal law, the transmission and 
distribution utility shall use this accounting for purposes of calculating any contribution 
in aid of construction under 26 United States Code, Section 118. 
7.  Rules.  Rules adopted pursuant to this section are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill establishes standards governing transmission and distribution utility line 
extension practices, including standards for charges for line extensions, limits on cost 
recovery, standards for charges for make-ready work, customer service requirements and 
requirements for accounting of line extension construction costs.