An Act To Ensure That Large Public Utility Reorganizations Advance the Economic Development and Information Access Goals of the State
Maine Legislature, Session 126, LD 1761
Committee Amendment CA_B_H773 (House)
Amends: 35-A MRSA §708

COMMITTEE AMENDMENT J3" to H.P. 1263, L.D. 1761, Bil1, "An Act To 
Ensure That Large Public Utility Reorganizations Advance the Economic Development 
and Information Access Goals of the State" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the fol1owing: 
'Sec. 1. 35-A MRS A §708, sub-§2, ~A, as enacted by PL 1987, c. 141, Pt. A, §6, 
is amended to read: 
A. Unless exempted by rule or order of the commission, no reorganization may take 
place without the approval of the commission. No reorganization may be approved 
by the commission unless it is established by the applicant for approval that the 
reorganization is consistent with the interests of the utility's ratepayers and investors. 
The commissioH shall rule tlpOH all requests for approval of a reorgaHizatioH vlithiH 
days of the filiHg of the request for approval. If it detemliHes that the Hecessary 
iHvestigatioH caHHot be cOHcluded withiH 60 days, the commissioH may exteHd the 
period for a further period of HO more thaH 120 days. In granting its approval, the 
commission shall impose such terms, conditions or requirements as, in its judgment, 
are necessary to protect the interests of ratepayers. 
These conditions shall must 
include provisions '",hich assme the follovliHg that ensure: 
(1) That the commission has reasonable access to books, records, documents and 
other information relating to the utility or any of its affiliates, except that the 
Public Utilities Commission may not have access to trade secrets unless it is 
essential to the protection of the interests of ratepayers or investors. 
The 
commission shall afford trade secrets and other information such protection from 
public disclosure as is provided in the Maine Rules of Civil Procedure; 
(2) That the commission has all reasonable powers to detect, identifY, review and 
approve or disapprove all transactions between affiliated interests; 
(3) That the utility's ability to attract capital on reasonable terms, including the 
maintenance of a reasonable capital structure, is not impaired; 
COMMITTEE AMENDMENT 
o~s 
~ 
COMMITTEE AMENDMEN~" to H.P. 1263, L.D. 1761 
(4) That the ability of the utility to provide safe, reasonable and adequate service 
is not impaired; 
(5) That the utility continues to be subject to applicable laws, principles and 
rules governing the regulation of public utilities; 
(6) That the utility's credit is not impaired or adversely affected; 
(7) That reasonable limitations be imposed upon the total level of investment in 
nonutility business, except that the commission may not approve or disapprove of 
the nature of the nonutility business; 
(8) 
That the commission has reasonable remedial power including, but not 
limited to, the power, after notice to the utility and all affiliated entities of the 
issues to be determined and the opportunity for an adjudicatory proceeding, to 
order. divestiture of or by the utility in the event that divestiture is necessary to 
protect the interest of the utility, ratepayers or investors. A divestiture order shall 
must provide a reasonable period within which the divestiture shall must be 
completed; and 
(9) 
That neither ratepayers nor investors are adversely affected by the 
reorganization. 
Sec. 2. 35-A MRS A §708, sub-§2, 'A-l is enacted to read: 
A-I. 
Unless exempted by rule or order of the commission, in addition to the 
requirements under paragraph A, before approving a reorganization in which any of 
the public utilities that are parties to the proposed transaction is a public utility that 
has gross annual state revenues exceeding $50,000,000, the commission: 
(1) For a reorganization that involves a telephone utility, must find that the 
proposal will advance the economic development and information access goals of 
the State as set forth in section 7101, subsections 2 and 4; 
(2) Must find that the reorganization does not result in changes to the location 
and the accessibility of the public utility's management and operations, or the 
proportion and number of the public utility's employees who reside in the State, 
that would adversely affect safety, reliability or quality of service; and 
(3) Shall impose such terms, conditions or requirements as in the commission's 
judgment are necessary to ensure that the reorganization provides an affirmative 
benefit to the public. 
Sec. 3. 35-A MRSA §708, sub-§6 is enacted to read: 
6. Time for approval. The commission shall rule upon all requests for approval of a 
reorganization, except the approval of a reorganization subject to subsection 2, paragraph 
A-I, within 60 days of the filing of the request for approval. 
If the commission 
determines that the necessary investigation cannot be concluded within 60 days, the 
commission may extend the period for a further period of no more than 120 days.' 
COMMITTEE AMENDMENT 
\-. 
~orS 
COMMITTEE AMENDMEN~" to H.P. 1263, L.D. 1761 
SUMMARY 
This amendment is the minority report of the committee. The amendment replaces the 
bill. The amendment requires the Public Utilities Commission to consider additional 
requirements before approving a reorganization involving a public utility with gross 
annual state revenues greater than $50,000,000. The commission may approve the 
reorganization only when it is satisfied that the proposal will advance the economic 
development and information access goals of the State for a reorganization that involves a 
telephone utility; that the reorganization does not result in changes to the location and the 
accessibility of the public utility'S management and to employment levels in a manner 
that would adversely affect safety, reliability or quality of service; and that the 
reorganization provides an affirmative benefit to the public. The amendment also 
removes the requirement that the Public Utilities Commission rule upon a request for the 
reorganization of a large public utility within 180 days. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
• 
Approved: 03/27114 
~a~ 
LD 1761 
LR2444(03) 
An Act To Ensure That Large Public Utility Reorganizations Advance the Economic Development and 
Fiscal Detail and Notes 
Information Access Goals of the State 
') 
Fiscal Note for Bill as Amended by Committee Amendment is C H -7 7 ~ 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
. The bill requires the Public Utilities Commission (PUC) to take certain actions before approving a reorganization 
involving any public utility having gross annual State revenues exceeding $50,000,000. Any additional costs to the 
PUC to undertake these activities are expected to be minor and can be absorbed within existing budgeted resources. 
LR2444(03) - Fiscal Note - Page 1 of 1 
..