An Act To Implement Recommendations To Provide Additional Flexibility for Funding Infrastructure Improvements for Water Utilities
Maine Legislature, Session 125, LD 1820
Committee Amendment CA_A_H852 (House)

COMMITTEE AMENDMENT" A" to H.P. 1342, L.D. 1820, Bill, "An Act To 
Implement Recommendations 
To 
Provide 
Additional 
Flexibility for 
Funding 
Infrastructure Improvements for Water Utilities" 
Amend the bill in section 4 in §6107-A by striking out all of the first paragraph (page 
1, lines 17 to 19 in L.D.) and inserting the following: 
'Notwithstanding chapter 3, a water utility may fund future infrastructure 
improvements through recovery in rates and fund completed infrastructure replacement or 
repairs through the establishment of a surcharge in accordance with this section and rules 
adopted by the commission. Nothing in this section may be construed to exempt any 
expenditure by a water utility from review by the commission in accordance with this 
Title.' 
Amend the bill in section 4 in §6107-A by striking out all of subsections 2 to 5 and 
inserting the following: 
'2. Commission review of capital reserve account. A water utility shall provide to 
the commission an annual accounting of all revenues deposited into and expenditures 
made from the water utility's capital reserve account. Money in the capital reserve 
account is not considered unappropriated retained earnings for the purpose of section 
6112, subsection 5. 
3. Infrastructure replacement surcharge. A water utility may establish and file, 
pursuant to section 307, a temporary surcharge to allow recovery of the costs of 
completed replacement or repairs of water system infrastructure. The temporary 
surcharge may continue until the water utility's next rate case under chapter 3 or rate 
filing pursuant to sections 6104 and 6104-A and in accordance with section 6105. 
If a water utility elects to institute an infrastructure replacement surcharge pursuant to this 
subsection, the water utility shall file the proposed surcharge with a justification for the 
implementation of the surcharge with the commission no less than 30 days before the 
effective date of the surcharge. The commission may investigate the surcharge in 
accordance with section 1303 to determine if the surcharge is just and reasonable. If the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" It" to H.P. 1342, L.D. 1820 
commission investigates the surcharge, the commission shall make its determination 
within 75 days of the filing and shall approve the surcharge if it is determined to be just 
and reasonable and deny the surcharge if it is determined not to be just and reasonable. 
4. 
Limitations. A water utility may not expend amounts collected pursuant to 
subsection 1 for any purpose other than infrastructure improvements in accordance with 
this section and rules adopted by the commission. 
S. Rules. The commission shall adopt rules to implement this section, including but 
not limited to rules governing the maximum amount of funds that may be recovered 
through rates or surcharges under this section, the authorized uses of those funds and 
reporting requirements and procedures to ensure that this section is being implemented in 
a manner that is consistent with just and reasonable rate-making principles, including a 
requirement that utilities submit an infrastructure needs assessment plan when 
establishing and using a capital reserve account. Rules adopted under this subsection are 
major substantive rules pursuant to Title 5, chapter 375, subchapter 2-A.' 
SUMMARY 
This amendment clarifies the Public Utilities Commission's review of a water utility's 
capital reserve account and requires that, if the commission investigates a water utility's 
temporary surcharge to detennine if it is just and reasonable, the determination must be 
made within 75 days. The amendment eliminates the requirement that the commission 
include in rulemaking the types of projects that are eligible for recovery. The amendment 
requires the commission to require by rule that a plan be submitted if a water utility is 
going to establish and use a capital reserve account. 
FISCAL ~OTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/21/12 fo?ac 
LD 1820 
LR 2765(02) 
An Act To Implement Recommendations To Provide Additional Flexibility for Funding Infrastructure 
Improvements for Water Utilities 
Fiscal Note for Bill as Amended by Committee Amendment "A" (H -~ 5~) 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
The bill provides for the implementation of recommendations made by the Public Utilities Commission to provide 
additional flexibility for funding infrastructure improvements for consumer-owned water utilities. It clarifies the 
commission's review of the capitol reserve account and requires that when the commission investigates a surcharge, 
its determination of the just and reasonableness of the surcharge be made within 75 days. Any additional costs to the 
commission can be absorbed within existing budgeted resources. 
LR2765(02) - Fiscal Note - Page 1 of 1