An Act To Ensure Equitable Support for Long-tenn Energy Contracts
Maine Legislature, Session 126, LD 1278
Committee Amendment CA_A_S384 (Senate)
Amends: 35-A MRSA §3210-C, 35-A MRSA §3210-F, 35-A MRSA §3604

COMMITTEE AMENDMENT "A " to S.P. 440, L.D. 1278, Bill, "An Act To 
Ensure Equitable Support for Long-tenn Energy Contracts" 
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'Sec. 1. 35-A MRSA §3210-C, sub-§8, as repealed and replaced by PL 2009, c. 
415, Pt. A, §23, is amended to read: 
8. Cost recovery. The commission shall ensure that an investor ovt'ned transmission 
and distribution utility recovers in rates all costs ef and direct financial benefits 
associated with contracts entered into pursuant to subsection 3, including but not limited 
to any impacts on the utility's costs of capital under this section are allocated to ratepayers 
in accordance with section 321 O-F. A price differential existing at any time during the 
tenn of the contract between the contract price and the prevailing market price at which 
the capacity resource is sold or any gains or losses derived from contracts for differences 
must be reflected in rates the amounts charged to ratepayers and may not be deemed to be 
considered imprudent. 
Sec. 2. 35-A MRSA §3210-F is enacted to read: 
§3210-F. Allocation of costs and benefits of long-term energy contracts 
The commission shall ensure that all eligible costs and benefits associated with a 
long-tenn energy contract are allocated to ratepayers in accordance with this section. 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following tenns have the following meanings. 
A. "Eligible costs and benefits" means the net amount of all costs and direct financial 
benefits associated with long-term energy contracts entered into by investor-owned 
transmission and distribution utilities, including but not limited to any effects on a 
utility's cost of capital as a result of these contracts. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 440, L.D. 1278 
B. 
"Long-term energy contract" means a contract with an investor-owned 
transmission and distribution utility entered into under section 3210-C or section 
3604. 
2. Eligible costs and benefits. The commission shall determine the eligible costs 
and benefits of a long-term energy contract annually. 
3. Allocation of eligible costs and benefits. The commission shall annually allocate 
to each investor-owned transmission and distribution utility its pro rata share of eligible 
costs and benefits as determined under subsection 2. The allocation must be based on 
each utility's total retail kilowatt-hour energy sales to ratepayers that receive the benefits 
and pay the costs of long-term energy contracts. The commission may detennine the 
means to be used for the allocation required under this section, which may include the 
direct transfer of funds between investor-owned transmission and distribution utilities. 
4. Rules. The commission may adopt rules to implement this section. Rules adopted 
pursuant to this subsection are routine technical rules as defined by Title 5, chapter 375, 
subchapter 2-A. 
Sec. 3. 35-A MRS A §3603, sub-§2, ~C, as enacted by PL 2009, c. 329, Pt. A, 
§4, is repealed. 
Sec. 4. 35-A MRSA §3604, sub-§8, as enacted by PL 2009, c. 329, Pt. A, §4, is 
repealed and the following enacted in its place: 
8. Cost and benefit allocation. The commission shall ensure that all costs and 
benefits associated with contracts involving investor-owned transmission and distribution 
utilities entered into under this section are allocated to electricity consumers in 
accordance with section 3210-F. 
Sec. 5. Transition; intent. The cost and benefit allocation mechanism set forth in 
the Maine Revised Statutes, Title 35-A, section 32l0-F applies to all costs and benefits 
incurred after the effective date of this Act, including the costs and benefits from long-
term energy contracts entered into prior to the effective date of this Act and including 
contracts entered into pursuant to Public Law 2009, chapter 615, Part A, section 6, as 
amended. This Act is not intended to change which customer or ratepayer classes within 
each investor-owned transmission and distJ.ibution utility receive the benefits or pay the 
costs of long-term energy contracts but rather to distribute the benefits and costs of the 
State's long-term energy contracts equitably among the State's investor-owned 
transmission and distribution utilities based on a utility's pro rata share of total retail 
kilowatt-hour energy sales to ratepayers that receive the benefits and pay the costs of 
long-term contracts.' 
SUMMARY 
This amendment clarifies that the Act is to apply to investor-owned tJ.·ansmission and 
distribution utilities rather than all transmission and distribution utilities. The amendment 
removes the prescriptive requirements of how the benefit and cost mechanism is to be 
created in order to provide the Public Utilities Commission with the flexibility to identify 
the best process. This amendment clarifies that the Act is meant to equally distribute the 
benefits and costs of long-term energy contracts more equitably among those that 
COMMITTEE AMENDMENT 
I 
COMMITTEE AMENDMENT" A" to S.P. 440, L.D. 1278 
currently receive the benefits and pay the costs of long-term energy contracts and that it is 
not intended to make classes or certain bodies of ratepayers who do not currently receive 
the benefits or pay the costs of long-tem1 energy contracts do so. 
This amendment 
removes the 25-megawatt cap under the community-based renewable energy pilot 
program. This amendment does not change the total 50-megawatt statewide cap. 
FISCAL NOTE REQUIRED 
(See Attached) 
COMMITTEE AMENDMENT 
• 
Approved: 01/31114 :evac 
LD 1278 
LR 1453(02) 
An Act To Ensure Equitable Support for Long-term Energy Contracts 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment '~' (S ~ ~C(4) 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - Other Special Revenue Funds 
The Public Utilities Commission (PUC) is directed to ensure that all eligible costs and benefits related to long-term 
capacity resource contracts realized by investor-owned transmission and distribution utilities in the State are 
appropriately allocated to electricity ratepayers. The PUC has adequate available resources for the expenses related t 
the required activities. 
LRI453(02) - Fiscal Note - Page 1 of 1