An Act To Reform Regulation of Consumer-owned Water Utilities
Maine Legislature, Session 126, LD 1784
Committee Amendment CA_A_S484 (Senate)
Amends: 35-A MRSA §6105, 35-A MRSA §6107, 35-A MRSA §6114

COMMITTEE AMENDMENT" A " to S.P. 710, L.D. 1784, Bill, "An Act To 
Reform Regulation of Consumer-owned Water Utilities" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec.t. 35-A MRSA §6105, sub-§§2 and 3, as enacted byPL 1987, c. 141, Pt. 
A, §6, are amended to read: 
2. Just and reasonable rates. The governing body shall establish and file rates, 
tolls or charges wJ:H.efl that are just and reasonable and wJ:H.efl that provide revenue as may 
be required to perform its public utility service and to attract necessary capital on just and 
reasonable terms. The governing body shall provide the rate schedule and any changes to 
the rate schedule to the commission. 
3. Uniform rates. The governing body shall establish and file rates wJ:H.efl that are 
uniform within the territory supplied whenever the installation and maintenance of mains 
and the cost of service is substantially uniform. 
If, for any reason, the cost of 
construction and maintenance or the cost of service in a section of the territory exceeds 
the average, the governing body may establish and file higher rates for that section, but 
these higher rates shall must be uniform throughout that section. The governing body 
shall provide the rate schedule and any changes to the rate schedule to the commission. 
Sec. 2. 35-A MRSA §6105, sub-§4, as corrected by RR 2011, c. 2, §39, is 
amended to read: 
4. Purposes. The governing body may establish and file rates under this section to 
provide revenue for the following purposes, but no other: 
A. 
To pay the current expenses for operating and maintaining the water system and 
to provide for normal renewals and replacements; 
B. 
To provide for the payment of the interest on the indebtedness created or 
assumed by the utility; 
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COMMITTEE AMENDMENT ''A "to S.P. 710, L.D. 1784 
C. 
To provide each year a sum equal to not less than 2% nor more than 10% of the 
term indebtedness represented by the issuance of bonds created or assumed by the 
utility, ';",hich; the sum sflal.I. must be turned into a sinking fund and there kept to 
provide for the extinguishment of term indebtedness. The money set aside in this 
sinking fund sflal.I. must be devoted to the retirement of the term obligations of the 
utility and may be invested in such securities as savings banks in the State are 
allowed to hold; 
D. 
To provide for annual principal payments on serial indebtedness created or 
assumed by the utility; 
E. To provide for a contingency allowance as provided in section 6112; 
F. To provide for rate adjustments to reflect the cost of anticipated construction of 
plants or facilities required by the 1986 amendments to the United States Safe 
Drinking Water Act, Public Law 93-523, or related projects, except that rates 
established under this paragraph are not subject to section 6104; and 
G. To provide for recovery of the amounts necessary to fund the replacement of 
water system infrastructure. Those funds must be deposited in a capital reserve 
account and used in accordance with section 6107-A. 
Sec. 3. 35-A MRSA §6107, sub-§3, as amended by PL 1987, c. 490, Pt. B, §16, 
is further amended to read: 
3. Use of funds. The funds generated by the system development charge sflal.I. must 
be deposited into a special account of the consumer-owned water utility dedicated to 
finance capital outlays for water system expansion caused by an increase in demand for 
service. The funds from the special account sflal.I. may be used only for the purpose of 
financing the expansion of the system and sfta.l.l. may not be used for the repair or 
replacement of existing facilities unless the replacement is required as a result of 
increased demand for service. The system development charge sfta.l.l. may not be treated 
as income of the consumer-owned water utility nor sfta.l.l. may it be considered part of the 
rates established and fi.l.ed provided to the commission pursuant to section 6105. 
Sec. 4. 35-A MRSA §6114 is enacted to read: 
§6114. Exemption from requirements 
The commission may grant exemptions from portions of this Title to individual 
consumer-owned water utilities or a class of consumer-owned water utilities in 
accordance with this section. An exemption granted under this section must be granted 
pursuant to standards and procedures adopted by the commission by rule. 
1. General standards. In order to grant an exemption, the commission must make 
specific findings that the exemption is in the public interest, will not result in unjust or 
unreasonable rates and will not have a negative impact on the provision of safe, adequate 
and reliable service and that the affected consumer-owned water utility or class of 
consumer-owned water utilities has the adequate technical, financial and administrative 
capacity to perform the waived function or requirement. 
2. 
Initiation of exemption. The commission shall consider an exemption to an 
individual consumer-owned water utility at the request of a consumer-owned water 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 710, LD. 1784 
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utility. The commission shall require the consumer-owned water utility to notify its 
customers and hold a public hearing before approving the request for exemption. The 
commission may, on its own motion, grant an exemption to a class of consumer-owned 
water utilities. The commission shall adopt by rule standards and procedures for granting 
an exemption to a class of consumer-owned water utilities. 
3. Exceptions. 
The commission may not a grant an exemption under this section 
from any of the following sections of this Title: 
A. Section 116; 
B. Section 301, subsections 1 to 3; 
C. Section 309, subsection 1; 
D. Section 501; 
E. Section 502; 
F. Section 702; 
G. Section 709; 
H. Section 712; 
1. Section 1101; 
J. Section 1302; 
K. Section 6105; 
1. Section 6109; 
M. Section 61 09-B; 
N. Section 6111-C; and 
O. Section 6112. 
4. Consumer assistance division. The commission shall ensure that customers of 
consumer-owned water utilities retain access to the services provided by the consumer 
assistance division within the commission. 
5. Rescission. The commission shall establish by rule a process by which customers 
of a consumer-owned water utility may petition the commission to rescind an exemption 
granted under this section to an individual consumer-owned water utility or to a class of 
consumer-owned water utilities. A rescission may be in whole or in part and may be 
specific to an individual consumer-owned water utility. 
Rules adopted pursuant to this section are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A.' 
SUMMARY 
This amendment replaces the bill. This amendment requires the Public Utilities 
Commission to adopt rules to establish standards and procedures to exempt consumer-
owned water utilities from portions of the Maine Revised Statutes, Title 35-A. This 
amendment: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A"to S.P. 710, L.D. 1784 
1. Outlines specific requirements related to standards for granting an exemption; 
2. Specifies ways a request for exemption may be initiated; 
3. Lists specific provisions of Title 35-A from which a consumer-owned water utility 
may not be exempted; 
4. 
Directs the commission to ensure that customers of consumer-owned water 
utilities still have access to the services provided by the consumer assistance division 
within the commission; and 
5. Directs the commission to establish by rule a process by which customers of a 
consumer-owned water utility can request that an exemption be rescinded. 
This amendment requires that rate schedules issued by a consumer-owned water 
utility be submitted to the commission. 
I18CALNOTE REQlJUlf.D 
(Bee • ........, 
COMMITTEE AMENDMENT 
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Approved: 03/31/14 frac.. 
LD 1784 
LR 2781(02) 
An Act To Reform Regulation of Consumer-owned Water Utilities 
Fiscal Note for Bill as Amended by Committee Amendment 'A" C 
s: - L/Fr q\ 
Committee: Energy, Utilities and Technology 
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Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
The bill allows the Public Utilities Commission (PUC) to grant exemptions to individual consumer-owned water 
utilities or a class of consumer-owned water utilities from certain regulations under Title 35-A. The PUC must adopt 
rules to ensure that customers of a consumer-owned water utility may petition the PUC to revoke an exemption and 
establish standards and procedures for granting exemptions to consumer-owned water utilities. Any additional costs to 
PUC to undertake these activities are expected to be minor and can be absorbed within existing budgeted resources. 
LR2781(02) - Fiscal Note - Page 1 of 1