An Act To Lower the Price of Electricity for Maine Consumers
Maine Legislature, Session 125, LD 1863
Committee: Energy, Utilities and Technology
Sponsors: THIBODEAU, LIBBY
Amends: 35-A MRSA §3210, 35-A MRSA §3210-C

Legislative Document 
No. 1863 
S.P. 648 
In Senate, March 12, 2012 
An Act To Lower the Price of Electricity for Maine Consumers 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator THIBODEAU of Waldo.  (GOVERNOR'S BILL) 
Cosponsored by Representative: LIBBY of Waterboro. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3210, sub-§2, ¶B-3, as enacted by PL 2009, c. 542, §3, is 
amended to read: 
B-3.  "Renewable capacity resource" means a source of electrical generation: 
(1)  Whose total power production capacity does not exceed 100 megawatts and 
relies on one or more of the following: 
(a)  Fuel cells; 
(b)  Tidal power; 
(c)  Solar arrays and installations; 
(d)  Geothermal installations; 
(e)  Hydroelectric generators that meet all state and federal fish passage 
requirements applicable to the generator; or  
(f)  Biomass generators that are fueled by wood or wood waste, landfill gas 
or anaerobic digestion of agricultural products, by-products or wastes; or 
(2)  That relies on wind power installations. 
Sec. 2.  35-A MRSA §3210, sub-§2, ¶C, as amended by PL 2009, c. 542, §5, is 
further amended to read: 
C.  "Renewable resource" means a source of electrical generation: 
(1)  That qualifies as a small power production facility under the Federal Energy 
Regulatory Commission rules, 18 Code of Federal Regulations, Part 292, Subpart 
B, as in effect on January 1, 1997; or 
(2)  Whose total power production capacity does not exceed 100 megawatts and 
that relies on one or more of the following: 
(a)  Fuel cells; 
(b)  Tidal power; 
(c)  Solar arrays and installations; 
(d)  Wind power installations; 
(e)  Geothermal installations; 
(f)  Hydroelectric generators; 
(g)  Biomass generators that are fueled by wood or wood waste, landfill gas 
or anaerobic digestion of agricultural products, by-products or wastes; or 
(h)  Generators fueled by municipal solid waste in conjunction with 
recycling. 
Sec. 3.  35-A MRSA §3210-C, sub-§2, as enacted by PL 2005, c. 677, Pt. C, §1, 
is amended to read: 
2.  Policy.  It is the policy of this State: 
A.  That the share of new renewable capacity resources as a percentage of the total 
capacity resources in this State on December 31, 2007 increase by 10% by 2017 and 
that, to the extent possible, the increase occur in uniform annual increments; 
B.  To reduce electric prices and price volatility for the State's electricity consumers 
and to reduce greenhouse gas emissions from the electricity generation sector; and 
B-1.  To reduce greenhouse gas emissions from the electricity generation sector; and 
C.  To develop new capacity resources to reduce demand or increase capacity so as to 
mitigate the effects of any regional or federal capacity resource mandates. 
Sec. 4.  35-A MRSA §3210-C, sub-§3, as amended by PL 2011, c. 273, §1 and 
affected by §3 and amended by c. 413, §2, is repealed and the following enacted in its 
place: 
3.  Commission authority.  The commission may direct investor-owned 
transmission and distribution utilities to enter into long-term contracts for: 
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.  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. 
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. 
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 10104, 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, as a primary consideration, anticipated to lower the price of electricity to ratepayers 
over the life of the contract.  The commission shall also consider whether the contract is 
consistent with the State's goals for greenhouse gas reduction under Title 38, section 576 
and the regional greenhouse gas initiative as described in the state climate action plan 
required in Title 38, section 577. 
Sec. 5.  35-A MRSA §3210-C, sub-§4, as amended by PL 2007, c. 293, §3, is 
further amended to read: 
4.  Priority of capacity resources.  In selecting capacity resources for contracting 
pursuant to subsection 3, the commission shall apply the following standards. 
A.  The commission shall select capacity resources that are competitive and the 
lowest price when compared to other available offers for capacity resources of the 
same or similar contract duration or terms and that are anticipated to lower the price 
of electricity to ratepayers. 
B.   Among capacity resources meeting the standard standards in paragraph A, the 
commission shall choose among capacity resources in the following order of priority: 
(1) New interruptible, demand response or energy efficiency capacity resources 
located in this State; 
(2) New renewable capacity Capacity resources located in this State; 
(3) New capacity Capacity resources with no net emission of greenhouse gases; 
(4)  New nonrenewable capacity resources located in this State. The commission 
shall give preference to new nonrenewable capacity resources with no net 
emission of greenhouse gases; 
(5)  Capacity resources that enhance the reliability of the electric grid of this 
State.  The commission shall give preference to capacity resources with no net 
emission of greenhouse gases; and 
(6)  Other capacity resources. 
Sec. 6.  35-A MRSA §3210-C, sub-§5, as enacted by PL 2005, c. 677, Pt. C, §1, 
is amended to read: 
5.  Contract term.  A contract entered into pursuant to subsection 3 may not be for 
more than 10 years, unless the commission finds a contract for a longer term to be 
prudent. 
The commission may not issue contracts that exceed 25% of total annual statewide 
electricity usage. 
A contract entered into pursuant to subsection 3 may not require a nonrenewable capacity 
resource to purchase carbon dioxide allowances under the regional greenhouse gas 
initiative, as defined in Title 38, section 580-A, subsection 19. 
A contract entered into pursuant to subsection 3 may not require a renewable capacity 
resource to purchase renewable energy credits, as defined in section 3210, subsection 2, 
paragraph B-2, and must provide that, by entering into such a contract, the renewable 
capacity resource satisfies the portfolio requirements for new renewable capacity 
resources under section 3210, subsections 3 and 3-A. 
SUMMARY 
This bill removes the 100-megawatt limit to qualify as a renewable resource for 
purposes of meeting the State's renewable resource portfolio requirement. 
This bill adjusts language providing for long-term contracts for capacity and energy 
in a manner that prioritizes and promotes lower costs of electricity to ratepayers over the 
life of such contracts. 
The bill also resolves a technical statutory conflict caused in 2011 by 2 laws 
amending the same paragraph.