An Act To Lower the Price of Electricity for Maine Consumers
Maine Legislature, Session 125, LD 1863
Committee Amendment CA_B-SA_B_S555 (Senate)
Amends: 35-A MRSA §3210-C

SENATE AMENDMENT "8 "to COMMITTEE AMENDMENT "B" to S.P. 648, 
L.D. 1863, Bill, "An Act To Lower the Price of Electricity for Maine Consumers" 
Amend the amendment by striking out all of section 1. 
Amend the amendment by striking out all of section 4 and inserting the following: 
'Sec. 4. 35-A MRSA §3210-C, sub-§13 is enacted to read: 
13. Contracts with renewable resources to ensure lower rates. In accordance 
with this subsection, the commission may direct investor-owned transmission and 
distribution utilities to enter into contracts with renewable resources as defined by section 
3210, subsection 2, paragraph C, subparagraph (3) 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. The commission 
shall ensure that the total cost to the ratepayers, when considering the price of 
electricity, the value of contracted capacity and renewable energy credits and any cost 
recovery in rates allowed to investor-owned transmission and distribution utilities 
according to paragraph G, is lower than the applicable market clearing price at the 
time of delivery. 
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. 
C. 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 
SENATE AMENDMENT 
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SENATE AMENDMENT " ~" to COMMITTEE AMENDMENT "B" to S.P. 648, L.D. 1863 
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 with renewable resources, as 
defined in section 3210, subsection 2, paragraph C, subparagraph (3), that in the 
aggregate exceed in any year during the terms of the contracts 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 resource under section 3210, subsection 2, paragraph C, 
subparagraph (3). Rules adopted under this subsection are maior substantive rules as 
defined in Title 5, chapter 375, subchapter 2-A.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment modifies Committee Amendment "B" as follows. 
1. It provides that the new contracts with renewable resources for the purposes of 
reducing the price of electricity to ratepayers must comply with the current requirement 
that the price paid by the investor-owned transmission and distribution utility for any 
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. 
2. It removes the provision that allows a generator whose total power production 
capacity exceeds 100 megawatts to qualify as a renewable capacity resource under the so-
called Class 1 portfolio requirement under the Maine Revised Statutes, Title 35-A, 
section 3210, subsection 3. 
3. It limits the amount of electricity that can be contracted from generators whose 
total power production capacity exceeds 100 megawatts, to the extent those generators, as 
a result of the contracts, are allowed to qualify for the so-called Class 2 portfolio 
requirement under the Maine Revised Statutes, Title 35-A, section 3210, subsection 3-A. 
In the aggregate such contracts may not in any year account for more than 50% of the 
statewide Class 2 portfolio requirement. 
The result of this amendment together with Committee Amendment "B" is to 
authorize the Public Utilities Commission to direct investor-owned transmission and 
distribution utilities to enter into contracts with renewable resources for the purpose of 
reducing the price of electricity to ratepayers. The contracts for electricity must be priced 
SENATE AMENDMENT 
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SENATE AMENDMENT "13" to COMMITTEE AMENDMENT "B" to S.P. 648, L.D. 1863 
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 legislation, 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% ofthe 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, commonly known 
as Class 2 renewable energy credits, in accordance with rules adopted by the commission. 
Such resources may not qualify for the portfolio requirements applicable to new 
renewable capacity resources, commonly known as Class 1 renewable energy credits. 
The contracts may not involve an amount of qualified renewable resources that exceeds 
in aggregate 50% of the applicable statewide portfolio requirements. 
FISCAL NOTE REQUIRED 
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SPONSORED BY; -'1!l--f---l-"'7~-'1"--'"",,~~-.=:;;1',+-,,-=' 
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(Senator THIDODEAU) 
COUNTY; Waldo 
SENATE AMENDMENT 
Approved: 04112112 frac 
LD 1863 
LR 2795(07) 
An Act To Lower the Price of Electricity for Maine Consumers 
Fiscal Note for Senate Amendment ".B" to Committee Amendment "B" S .. 555 
Sponsor: Sen. Thibodeau of Waldo 
Fiscal Note Req uired : Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
Any additional costs to the Public Utilities Commission related to the provisions of this bill can be absorbed within 
existing budgeted resources. 
LR2795(07) - Fiscal Note - Page 1 of 1