An Act To
Maine Legislature, Session 125, LD 0772
Committee Amendment CA_A_H93 (House)

COMMITTEE AMENDMENT " 
to· H.P, 579, L.D. 772, Bill, "An Act To 
Amend the Auditing Requirements for Accounts of All Water Utilities" 
Amend the bill by striking out the title and substituting the following: 
'An Act 
Modify the Auditing Requirements for Certain Small Water Utilities' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inseliing the following: 
·Sec.1. 35-A MRS A §50S, as enacted by PL 1987, c. 141, Pt. A, §6, is amended 
to read: 
§SOS. Audit of accounts 
The commission shall provide for the examination and audit of all accounts and all 
items &hall must be allocated to the accounts in the manner presclibed by the commission, 
1. Consumer-owned water utilities. Except as provided in this subsection, the 
commission may not require under this section that a qualified small water utility cause to 
be conducted an annual audit of its accounts. For purposes of this subsection, "qualified 
small water utility" means a consumer-owned water utility with gross annual revenues 
that do not exceed $250,000, 
A. A qualified small water utility with gross annual revenues of $50,000 or less shall 
for any year used as a test year for rate-making purposes cause to be conducted, in 
accordance with generally accepted aUditing standards, an audit of its accounts by an 
independent certified public accountant licensed to practice in the State. 
B. A qualified small water utility with gross annLlal revenues greater than $50,000: 
(1) Shall cause to be conducted, in accordance with generally accepted auditing 
standards, an annual review of its accounts by an independent certified public 
accountant licensed to practice in the State; and 
GLNot less than once every 5 years and for any year used as a test year for 
rate-making purposes, shall cause to be conducted, in accordance with generally 
COM ITTEE AMENDMENT 
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COMMITTEE AMENDMENT "H" to H.P. 579, L.D. 772 
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accepted auditing stan8ards, an audit of its accounts by an independent certified 
public accountant licensed to practice in the State. 
Nothing in this subsection limits or affects any other reporting, review, aUditing or other 
requirement impose,d by a creditor of the qualified small water utility or by any other 
~able law or government authority.' 
SUMMARY 
This amendment replaces the bill. Under current rules and decisions of the Public 
Utilities Commission, water utilities with revenues under $50,000 are exempt from 
annual aUditing requirements otherwise required by the cOjumission pursuant to the 
Maine Revised Statutes, Title 35~A, section 505. This amendment codifies this existing 
exemption. 
The amendment also provides that consumer-owned water utilities with 
revenues greater than $50,000 but not exceeding $250,000 are exempt from commission's 
annual auditing requirements, but that such water utilities must cause to be conducted, in 
accordance with generally accepted auditing standards, an annual review of their 
accounts. Also, not less than once every 5 years and for any year used as a test year for 
rate-making purposes, such water utilities must cause to be conducted an audit of their 
accounts. The amendment does not limit or affect any other reporting, review, auditing 
or other requirement imposed by a creditor of the water utility or by any other applicable 
law or government authority. 
COMMITTEE AMENDMENT