An Act To Lower the Price of Electricity for Maine Consumers
Maine Legislature, Session 125, LD 1863
Committee Amendment CA_B_S495 (Senate)
Amends: 35-A MRSA §3210, 35-A MRSA §3210-C

COMMITTEE AMENDMENT" B" to S.P. 648, L.D. 1863, Bill, "An Act To 
Lower the Price of Electricity 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, ~-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; 9f 
(2) That relies on wind power installations7~ 
(3) Whose total power production capacity exceeds 100 megawatts and that is 
subject to a contract entered into under section 3210-C, subsection 13, but only 
during the term of the contract and only that portion that is governed by the 
contract, as determined by the commission by rule pursuant to section 321O-C, 
subsection 13, and only if the source of electric generation relies on one or more 
of the following: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" B" to S.P. 648, L.D. 1863 
Ca) Fuel cells; 
Cb) Tidal power; 
Cc) Solar arrays and installations; 
Cd) Geothermal installations; 
Ce) 
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. 
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;-eT 
(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~~ 
(3) Whose total power production capacity exceeds 100 megawatts and that is 
subject to a contract entered into under section 321O-C, subsection 13, but only 
during the term of the contract and only that portion that is governed by the 
contract, as determined by the commission by rule pursuant to section 3210-C, 
subsection 13, and only if the source of electric generation relies on one or more 
of the following: 
Ca) Fuel cells; 
Cb) Tidal power; 
Cc) Solar arrays and installations; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" 13" to S.P. 648, L.D. 1863 
Cd) Wind power installations; 
Ce) Geothermal installations; 
(f) Hydroelectric generators; 
Cg) Biomass generators that are fueled by wood or wood waste, landfill gas 
or anaerobic digestion of agricultural products, by-products or wastes; or 
Ch) 
Generators fueled by municipal solid waste in conjunction with 
recycling. 
Sec. 3. 35-A MRSA §3210-C, sub-§3, ,C, 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: 
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 
transmission and distribution utility. 
Sec. 4. 35-A MRS A §3210-C, sub-§13 is enacted to read: 
13. Contracts to ensure lower rates. In accordance with this subsection, the 
commission may direct investor-owned transmission and distribution utilities to enter into 
contracts with electricity resources for the purpose of reducing the price of electricity to 
ratepayers. 
Contracts under this subsection are not governed by the provisions of 
subsection 3. 
A. The commission shall ensure that a contract under this subsection requires the 
price for electric energy purchased under the contract to be at least 10% less than the 
applicable market clearing price at the time of delivery, as determined by the 
commission by rule, except that if the commission determines that a discount price 
closer to the applicable market clearing price is necessary to achieve the purposes of 
this section, the commission may by rule establish a lower discount. 
B. The commission may not require contracts entered into under this subsection to 
involve in aggregate an amount of electric energy that exceeds 10% of the total 
statewide electric energy load, as determined by the commission by rule. 
e. The commission may not require an investor-owned transmission and distribution 
utility to enter into any contract under this subsection that has a term that exceeds 20 
years. 
D. The commission may require an investor-owned transmission and distribution 
utility to enter into a contract for electric energy and associated renewable energy 
credits, with appropriate valuation of each component, consistent with the other 
requirements of this subsection. 
E. The commission may not require investor-owned transmission and distribution 
utilities to enter into contracts under this subsection: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" S" to S.P. 648, L.D. 1863 
(1) With renewable capacity resources, as defined in section 3210, subsection 2, 
paragraph B-3, that in aggregate exceed during the term of the contract 50% of 
the total statewide portfolio requirement established under section 3210, 
subsection 3-A; or 
(2) 
With renewable resources, as defined in section 3210, subsection 2, 
paragraph C, subparagraph (3), that exceed during the terms of the contract 50% 
of the total statewide portfolio requirement established under section 3210, 
subsection 3. 
F. An investor-owned transmission and distribution utility shall sell entitlements for 
capacity, energy and renewable energy credits purchased pursuant to this subsection 
as directed by the commission. 
G. The commission shall ensure that an investor-owned transmission and distribution 
utility recovers in rates all costs of contracts entered into pursuant to this subsection, 
including but not limited to any impacts on the utility's costs of capital. 
The commission shall adopt rules implementing this subsection and defining when a 
source of electric generation that is subject to a contract entered into under this subsection 
qualifies as a renewable capacity resource under section 3210, subsection 2, paragraph 
B-3, subparagraph (3) or a renewable resource under section 3210, subsection 2, 
paragraph C, subparagraph (3). 
Rules adopted under this subsection are major 
substantive rules as defined in Title 5, chapter 375, subchapter 2-A.' 
SUMMARY 
This amendment, which is the minority report, authorizes the Public Utilities 
Commission to direct investor-owned transmission and distribution utilities to enter into 
contracts with electricity resources for the purpose of reducing the price of electricity to 
ratepayers. 
The contracts for electricity must be priced at least 10% less than the 
applicable market clearing price at the time of delivery, except that if the commission 
determines that a discount price closer to the applicable market clearing price is necessary 
to achieve the purposes of this section, the commission may by major substantive rule 
establish a lower discount. Contracts may not involve in aggregate an amount of electric 
energy that exceeds 10% of the total statewide electric energy load and may not have a 
term that exceeds 20 years. The commission may require contracts for the electric energy 
and associated renewable energy credits, with appropriate valuation of each component. 
Resources under these contracts that otherwise qualify as renewable resources under the 
portfolio requirements but that exceed the current 100-megawatt limitations will become 
qualified to meet those portfolio requirements in accordance with rules adopted by the 
commission. The contracts may not involve an amount of qualified renewable resources 
that exceed in aggregate 50% of the applicable statewide portfolio requirements. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/22/12 
~ac. 
LD 1863 
LR 2795(03) 
An Act To Lower the Price of Electricity for Maine Consumers 
Fiscal Note for Bill as Amended by Committee Amendment "';" 8 - ''''<is 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Any additional costs to the Public Utilities Commission related to the provisions of this bill can be absorbed within 
existing budgeted resources. 
LR2795(03) - Fiscal Note - Page 1 of 1