An Act To Reduce Energy Prices for Maine Consumers
Maine Legislature, Session 125, LD 1570
Committee Amendment CA_A_S272 (Senate)
Amends: 35-A MRSA §3210, 35-A MRSA §3210-C

COMMITTEE AMENDMENT" It', to S.P. 501, L.D. 1570, Bill, "An Act To 
Reduce Energy Prices for Maine Consumers" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 35-A MRSA §3210, sub-§2, fB-4, as enacted by PL 2009, c. 542, §4; is 
amended to read: 
B-4. 
"New" as applied to any renewable capacity resource means a renewable 
capacity resource that: 
(1) Has an in-service date after September 1,2005; 
(2) Was added to an existing facility after September 1, 2005; 
(3) For at least 2 years was not operated or was not recognized by the New 
England independent system operator as a capacity resource and, after September 
1, 2005, resumed operation or was recognized by the New England independent 
system operator as a capacity resource; or 
(4) 
Was refurbished after September 1, 2005 and is operating beyond its 
previous useful life or is employing an alternate technology that significantly 
increases the efficiency of the generation process. 
For the purposes of this paragraph, "capacity resource" has the same meaning as in 
section 3210-C, subsection 1, paragraph A. For the purposes of this paragraph, "to 
refurbish" means to make an investment in equipment or facilities, other than for 
routine maintenance and repair, to renovate, reequip or restore the renewable capacity 
resource. 
Sec. 2. 35-A MRSA §3210-C, sub-§3, as amended by PL 2009, c. 518, §3, is 
further amended to read: 
3. 
Commission authority. 
The commission may direct investor-owned 
transmission and distribution utilities to enter into long-term contracts for: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" f't "to S.P. 501, L.D. 1570 
A. Capacity resources; 
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 otherwise lowering the cost of 
electricity for the 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; and 
C. 
Any available renewable energy credits associated with capacity resources 
contracted under paragraph A to the 6*tent the cost of the ren6't¥able energy credits is 
below market value or the pllfchase of renev{aale energy credits adds valee to the 
transaction. The price paid by the investor-owned transmission and distribution 
utility for the renewable energy credits must be lower than the price received for 
those renewable energy credits at the time they are sold by the investor-owned 
transmission and distribution utility. 
If at any time after July 1, 2011 the cOl1H11ission detennines that the assessments on 
transmission and distribution utilities under section 10110, sllbsections 4 and 5 will not 
provide sufficient funds to meet the energy efficiency program budget allocations 
articlliated in the triennial plan approved by thE} cOl1H11ission pmsuaRt to section 10104, 
sllbsection 4 or any anRllalepdate plan approved by the commission PllfSUaRt to section 
10104, Sllbsection 6, the commission may, after providing notification to the joint 
standffig committee of the LegislatW'e havffig jllfisdiction over utilities and energy 
matters, direct investor owned traRsmission and distribution utilities to enter into long 
term contracts for energy efficiency capacity resources and any available energy 
associated with such resources to the 6*tent necess8i)' to meet the energy efficieRcy 
program budget allocations articulated in the triermial plan or aBflualupdate plan. 
The commission may direct investor owned transmission and distribution utilities to enter 
ffito contrasts unSer this subsestion only as agents for their customers, only ",'hen SliGh 
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. 
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 
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 capacity resources. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "Ii "to S.P. 501, L.D. 1570 
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 10 104, 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. 
Sec. 3. 35-A MRS A §3210-C, sub-§§l1 and 12 are enacted to read: 
11. Customer benefits. The commission may direct investor-owned transmission 
and distribution utilities to enter into contracts under this section only as agents for their 
customers and only when such contracts are in the best interest of customers and in 
accordance with this subsection. The commission shall adopt rules to ensure that: 
A. To the extent the benefits to ratepayers of a long-term contract are projected to 
occur in the later years of the contract tenn, the commission shall ensure that 
adequate financial security is in place so that it is reasonably likely ratepayers will 
obtain the projected benefits of the long-tenn contract; and 
B. To the extent practicable, ratepayers obtain the benefit of lower cost capacity 
resources of energy associated with those resources or of any renewable energy 
credits that may exist after the term of primary financing or subsequent replacement 
financing necessary for the development and construction of a generation project is 
completed. 
12. Triennial plan energy efficiency contracts. The commission, in accordance 
with this subsection, may direct transmission and distribution utilities to enter into 
long-term contracts with the trust to meet the energy efficiency program budget 
allocations articulated in the triennial plan approved by the commission pursuant to 
section 10104, subsection 4. 
A. 
If the commission determines that the assessments on transmission and 
distribution utilities under section 10110, subsections 4 and 5 will not provide 
sufficient funds to meet the energy efficiency program budget allocations articulated 
in the triennial plan or any annual update plan approved by the commission pursuant 
to section 10104, subsection 6, the commission may direct investor-owned 
transmission and distribution utilities to enter into long-term contracts for energy 
efficiency capacity resources and any available energy associated with those 
resources to the extent necessary to meet the energy efficiency program budget 
allocations articulated in the triennial plan or annual update plan. If those contracts 
result in a fee or assessment on ratepayers, the commission may only direct an 
investor-owned transmission and distribution utility to enter into those contracts if: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 501, L.D. 1570 
(1) The commission provides notification to the joint standing committee of the 
Legislature having jurisdiction over utilities and energy matters of the proposed 
contract or contracts; and 
(2) The Legislature: 
(a) Specifically authorizes the contract or contracts; or 
(b) 
Allocates an amount of funds from the account established under 
paragraph B that is no less than the total funds that will be deposited in the 
account under all proposed contracts over the full terms of those contracts. 
B. The Energy Efficiency Capacity Contract Account, referred to in this paragraph as 
"the account," is established in the Efficiency Maine Trust. 
The account is a 
nonlapsing account. Except as .otherwise expressly directed by legislation approving 
the contract or contracts pursuant to paragraph A, subparagraph (2), division (at all 
payments from contracts entered into pursuant to this subsection must be deposited in 
the account. Notwithstanding Title 5, section 1667-B, the State Budget Officer may 
not allot an amount in any fiscal year that is greater than the allocation pursuant to 
paragraph A, subparagraph (2), division (b). 
Sec. 4. Prohibition. Except for long-term contracts entered into pursuant to Public 
Law 2009, chapter 615, Part A, section 6, the Public Utilities Commission may not direct 
transmission and distribution utilities to enter into long-tenn contracts pursuant to the 
Maine Revised Statutes, Title 35-A, section 321O-C after the effective date of this Act 
until the major substantive rules required under Title 35-A, section 321O-C, subsection 11 
are finally adopted. 
Sec. 5. 
Report. 
The Public Utilities Commission shall study the portfolio 
requirements established under the Maine Revised Statutes, Title 35-A, section 3210, 
subsection 3-A. The study must include an analysis of: 
1. The source and cost of renewable energy credits used to satisfy the portfolio 
requirements; 
2. The impact of renewable energy credits generated in this State on the regional 
renewable energy credit market; 
3. The impact of the portfolio requirements on the viability of electricity generating 
facilities in this State that are eligible to meet the portfolio requirements; 
4. The impact of the portfolio requirements on electricity costs; 
5. If the portfolio requirements result in an increase in electricity costs, to the extent 
possible, the impact of that increase on economic development in this State; 
6. The cost of the use of the alternative compliance payment mechanism under Title 
35-A, section 3210, subsection 9 for electricity consumers in this State and, to the extent 
information is available, the reasons competitive electricity providers use the alternative 
compliance payment mechanism; 
7. The best practices for setting the alternative compliance payment rate; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 501, L.D. 1570 
8. To the extent possible, the benefits resulting from the portfolio requirements, 
including, but not limited to, tangible benefits and community benefits pursuant to Title 
35-A, section 3454, economic benefits due to the creation of jobs or investments in this 
State including multiplier effects, research and development investment in this State, the 
impact on electricity rates and benefits due to diversifying this State's energy generation 
portfolio. 
The commission may consult with the Department of Economic and Community 
Development and the Department of Environmental Protection to complete this report. 
The commission may contract with one or more qualified entities to complete the report 
in whole or in part. 
To the extent possible, the commission shall complete the study within existing 
resources. If additional resources are needed, the commission may confer with the Office 
of the Public Advocate to identify the necessary funding and may accept funds from the 
Office of the Public Advocate for the purposes of this section. 
The commission shall submit a report of its findings and recommendations to the 
Joint Standing Committee on Energy, Utilities and Technology by January 31, 2012. 
After reviewing the report, the committee may submit a bill related to the findings in the 
report to the Second Regular Session of the 125th Legislature. 
Sec. 6. Application to long-term contracts for offshore wind and tidal 
energy. Notwithstanding Public Law 2009, chapter 615, Part A, section 6, the portions 
of this Act that amend the Maine Revised Statutes, Title 35-A, section 3210-C do not 
apply to contracts entered into pursuant to Public Law 2009, chapter 615, Part A, section 
6.' 
SUMMARY 
This amendment is the majority report of the committee. It strikes the bill and 
replaces it. It provides a definition of "to refurbish" as it applies to new renewable 
capacity resources. It requires the Public Utilities Commission to conduct rulemaking to 
ensure that consumers will benefit from long-term contracts. It requires legislative 
approval for long-term contracts for energy efficiency capacity resources that result in a 
fee or an assessment on ratepayers. Finally, this amendment directs the Public Utilities 
Commission to conduct an in-depth analysis of the new renewable capacity resources 
portfolio requirements. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 06/04111 
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LD 1570 
LR2168(02) 
An Act To Reduce Energy Prices for Maine Consumers 
Fiscal Note for Bill as Amended by Committee Amendment "A" S .. 21"2-
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor cost increase - Other Special Revenue Funds 
Amending the definition of "refurbishment" as applied to natural resources, requiring the Public Utilities Commissior. 
(fUC) to make rules to ensure consumers will benefit from long-term contracts, directing the PUC to analyze and 
report on the new renewable portfolio standard and directing the Efficiency Maine Trust (EMT) to meet PUC requests 
to enter into long-term contracts with transmission and distribution utilities in order to meet Triennial Plan goals will 
result in minor costs to the PUC and the EMT which can be absorbed within existing budgeted resources. 
Requiring the Office of Public Advocate, the Department of Economic and Community Development and the 
Department of Environmental Protection to consult as needed with the PUC to develop the portfolio standard report 
may result in minor costs that can be absorbed within existing budgeted resources. 
LR2168(02) - Fiscal Note - Page 1 of 1