An Act To Ensure Just and Reasonable Sewer Utility Rates
Maine Legislature, Session 126, LD 1342
Committee: Energy, Utilities and Technology
Sponsors: TREAT, FLOOD
Amends: 35-A MRSA §102, 38 MRSA §1202, 38 MRSA §1252

Legislative Document 
No. 1342 
H.P. 959 
House of Representatives, April 4, 2013 
An Act To Ensure Just and Reasonable Sewer Utility Rates 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative TREAT of Hallowell. 
Cosponsored by Senator FLOOD of Kennebec. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §102, sub-§13, as amended by PL 2009, c. 539, §1, is 
further amended to read: 
13.  Public utility.  "Public utility" includes every gas utility, natural gas pipeline 
utility, transmission and distribution utility, telephone utility, water utility, sewer utility 
and ferry, as those terms are defined in this section, and each of those utilities is declared 
to be a public utility. "Public utility" does not include the operation of a radio paging 
service, as that term is defined in this section, or mobile telecommunications services 
unless only one entity or an affiliated interest of that entity, as defined in section 707, 
subsection 1, paragraph A, exclusively controls the use of the radio frequency spectrum 
assigned by the Federal Communications Commission to provide mobile service to the 
service area. "Public utility" includes a smart grid coordinator as defined in section 3143, 
subsection 1, paragraph B. 
Nothing in this subsection precludes: 
A.  The jurisdiction, control and regulation by the commission pursuant to private and 
special act of the Legislature; 
B.  The commission's jurisdiction and control over and regulation of a public utility 
that provides, in addition to other services,  radio paging service or mobile 
telecommunications services; 
C.  The commission's jurisdiction and control over and regulation of basic exchange 
telephone service offered by a provider of mobile telecommunications services if, 
after investigation and hearing, the commission determines that the provider is 
engaged in the provision of basic exchange telephone service; and 
D.  Negotiations for, or negates agreements or arrangements existing on the effective 
date of this paragraph relating to, rates, terms and conditions for interconnection 
provided by a telephone utility to a company providing radio paging or mobile 
telecommunications services. 
Sec. 2.  35-A MRSA §102, sub-§16-B is enacted to read: 
16-B.  Sewer utility.  "Sewer utility" means a sanitary district established under Title 
38, chapter 11 or a sewer district as defined in Title 38, section 1251. 
Sec. 3.  35-A MRSA Pt. 5-A is enacted to read: 
PART 5-A 
SEWER 
CHAPTER 55 
RATE REGULATION OF SEWER UTILITIES 
§5501.   Definitions 
For the purposes of this chapter, unless the context otherwise indicates, the term 
"customer" means, in the case of residential accounts, any one adult residing in a 
household where the sewer utility's service is provided and, in the case of all other 
accounts, a corporate officer, a partner or a proprietor. 
§5502.  Sewer utility regulation limited to rate regulation; rules 
A sewer utility is subject to regulation as a public utility under this Title only for 
purposes of rate regulation by the commission in accordance with this Part.  The 
commission shall adopt rules necessary to carry out the purposes of this Part, including 
rules specifying those provisions of this Title to which a sewer utility is subject for 
purposes of rate regulation in accordance with this Part.  Except as specified in this Part 
and rules adopted in accordance with this section, a sewer utility is not otherwise subject 
to regulation under this Title.  Rules adopted under this section are routine technical rules 
as defined in Title 5, chapter 375, subchapter 2-A. 
§5503.  Petitions; rate regulation 
The commission shall investigate proposed changes in the rates of a sewer utility in 
accordance with this section and rules adopted by the commission under section 5502. 
1.  Petitions.  In accordance with this subsection, customers of a sewer utility may 
petition the commission to investigate proposed changes in the rates of the sewer utility. 
A.  The petition must be signed by customers of the sewer utility in accordance with 
paragraph B, identify a lead petitioner and be delivered to the commission and the 
treasurer of the sewer utility within 30 days of the public hearing on the rate change 
required under Title 38, section 1202 or Title 38, section 1252, subsection 1. 
(1)  The commission shall require sewer utilities to provide notice of the petition 
procedures established under this section both before and at the beginning of 
public hearings required under Title 38, section 1202 or Title 38, section 1252, 
subsection 1.  The notice must include a statement that signatures on petitions are 
valid only if accompanied by the printed names and addresses of the signers. The 
commission shall require sewer utilities, upon request, to provide customers with 
petition forms that include space for signatures and the printed names and 
addresses of the signers. 
B.  The petition must contain a number of signatures equal to 15% of the customers 
of the sewer utility or 1,000 customers, whichever is less, unless the rate increase is 
more than 50% of the sewer utility's annual operating revenues, in which case the 
number of signatures must be 15% of the customers of the sewer utility or 500 
customers, whichever is less.  No more than one customer may sign on behalf of an 
account. A person may not sign on behalf of more than one account unless the person 
is a customer under each account.  Signatures are valid only if accompanied by the 
printed names and addresses of the signers. 
C.  Within 10 days from the receipt of a petition under this subsection, a sewer utility 
shall notify the commission and the lead petitioner whether it intends to contest any 
aspect of the validity of the petition.  If the sewer utility intends to challenge the 
validity of the individual signatures on the petition, it shall identify, in the notice to 
the commission and lead petitioner, the specific signatures it is challenging and state 
the grounds for the challenging of each signature.  If a sewer utility files the notice of 
intent to challenge the validity of the petition, the sewer utility shall provide the 
commission and lead petitioner with a list of its customers. 
D.  If a petition bears a sufficient total number of signatures but an insufficient 
number of printed names and addresses of the signers, the lead petitioner has 7 days 
from receipt of notice of the sewer utility's challenge pursuant to paragraph C to 
obtain the correct number of printed names and addresses of the signers.  If the 
petition is sufficiently corrected to address all of the concerns of the sewer utility, the 
commission is not required to hold a hearing pursuant to paragraph E. 
E.  If the sewer utility notifies the commission in accordance with paragraph C that it 
intends to contest the validity of the petition and the petition is not sufficiently 
corrected pursuant to paragraph D, the commission shall, within 30 days of receiving 
notice from the sewer utility pursuant to paragraph C, conduct a hearing and issue its 
decision regarding the validity of the petition. 
2.  Supporting materials.  A sewer utility shall file a copy of all materials supporting 
the proposed rate change with the commission and the Public Advocate. The sewer utility 
shall promptly provide any readily available relevant additional information requested by 
the commission or the Public Advocate.  Upon review of the materials, the commission 
may order the sewer utility to correct mathematical or clerical errors. 
3.  Investigation of rate changes.  If the commission and the treasurer of the sewer 
utility receive a valid petition in accordance with subsection 1, the commission shall 
suspend, investigate, review and change the rate in accordance with section 310.  Rates 
established by the commission must be just and reasonable in accordance with section 
301.  No suspension order issued by the commission for the purposes of this section is 
effective for a period greater than 9 months from the date the materials supporting the 
rate change were filed under subsection 2. 
Sec. 4.  38 MRSA §1202, as amended by PL 1981, c. 466, §12, is further amended 
by adding after the 3rd paragraph a new paragraph to read: 
The notice of the public hearing must include a notice regarding rate regulation by 
the commission pursuant to Title 35-A, Part 5-A, as required under Title 35-A, section 
5503.  At the commencement of the public hearing, the district shall also provide a 
similar notice, as required by the commission under Title 35-A, section 5503. 
Sec. 5.  38 MRSA §1252, sub-§1, as enacted by PL 1981, c. 466, §13, is amended 
to read: 
1.  Adoption of new rates.  Prior to the adoption of a new rate schedule, the trustees 
shall hold a public hearing regarding the proposed rate schedule. The trustees shall 
publish the proposed rates and notice of the public hearing not less than once in a 
newspaper having a general circulation in the district not less than 7 days prior to the 
public hearing. The district shall mail to each ratepayer a notice of the public hearing and 
the proposed new rate at least 14 days prior to the public hearing. 
The notice of the public hearing must include a notice regarding rate regulation by the 
commission pursuant to Title 35-A, Part 5-A, as required under Title 35-A, section 5503.  
At the commencement of the public hearing, the district shall also provide a similar 
notice, as required by the commission under Title 35-A, section 5503. 
SUMMARY 
This bill gives the Public Utilities Commission authority to investigate rate changes 
of sewer districts and sanitary districts, jointly referred to as "sewer utilities," if the 
commission receives a petition that meets certain criteria requesting it to do so. If the 
commission receives a valid petition, the rate must be suspended, investigated, reviewed 
and changed in accordance with the Maine Revised Statutes, Title 35-A, section 310.  
The bill includes a process for sewer utilities to challenge the validity of the petition.  The 
bill gives the commission authority to adopt rules regarding rate regulation.