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: Energy, Utilities and Technology
Sponsors: HOBBINS, JACKSON, BERRY, CAREY, EVES, GILBERT, STUCKEY, TIPPING-SPITZ, ALFOND
Amends: 35-A MRSA §708, 35-A MRSA §1101, 35-A MRSA §1103

Legislative Document 
No. 1761 
H.P. 1263 
House of Representatives, February 6, 2014 
An Act To Ensure That Large Public Utility Reorganizations 
Advance the Economic Development and Information Access Goals 
of the State 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative HOBBINS of Saco. 
Cosponsored by Senator JACKSON of Aroostook and 
Representatives: BERRY of Bowdoinham, CAREY of Lewiston, Speaker EVES of North 
Berwick, GILBERT of Jay, STUCKEY of Portland, TIPPING-SPITZ of Orono, Senator: 
President ALFOND of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §708, sub-§2, ¶A, as enacted by PL 1987, c. 141, Pt. A, §6, 
is repealed. 
Sec. 2.  35-A MRSA §708, sub-§2, ¶¶A-1 and A-2 are enacted to read: 
A-1.  Unless exempted by rule or order of the commission, a reorganization in which 
any of the public utilities that are parties to the proposed transaction has gross annual 
state revenues exceeding $50,000,000 may not take place without the approval of the 
commission. 
(1)  Before approving a reorganization in which any of the public utilities that are 
parties to the proposed transaction has gross annual state revenues exceeding 
$50,000,000, the commission must find that the proposal will: 
(a)  Advance the economic development and information access goals of the 
State as set forth in section 7101, subsections 2 and 4 to the extent applicable 
to the type of public utilities involved; 
(b)  Result in short-term and long-term economic benefits to ratepayers; 
(c)  Be consistent with the interests of the public utility's investors; and 
(d) Be consistent with the interests of the public utility’s employees. 
(2)  In granting its approval under subparagraph (1), the commission shall impose 
such terms, conditions or requirements as in its judgment are necessary to ensure 
that the reorganization provides an affirmative benefit to the public.  These 
conditions must include provisions that ensure: 
(a)  That the commission has reasonable access to books, records, documents 
and other information relating to the public utility or any of its affiliates, 
except that the commission may not have access to trade secrets unless 
access 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; 
(b)  That the commission has all reasonable powers to detect, identify, review 
and approve or disapprove all transactions between affiliated interests; 
(c)  That the public utility's ability to attract capital on reasonable terms, 
including the maintenance of a reasonable capital structure, is not impaired; 
(d)  That the ability of the public utility to provide safe, reasonable and 
adequate service is not impaired; 
(e)  That the public utility continues to be subject to applicable laws, 
principles and rules governing the regulation of public utilities; 
(f)  That the public utility's credit is not impaired or adversely affected; 
(g)  That reasonable limitations are 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; 
(h)  That the commission has reasonable remedial power, including, but not 
limited to, the power, after notice to the public 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 public utility in the event that 
divestiture is necessary to protect the interests of the public utility, ratepayers 
or investors.  A divestiture order must provide a reasonable period within 
which the divestiture must be completed; 
(i)  That ratepayers, the public utility’s investors and the public utility’s 
employees are not adversely affected by the reorganization; 
(j)  That the reorganization does not result in the subsidization by the public 
utility of activities that are not connected to the provision of public utility 
services to ratepayers; 
(k)  That the reorganization is not likely to have a significant adverse effect 
on competition in those markets over which the commission has jurisdiction; 
(l)  That the reorganization is not likely to result in any adverse rate impact 
on the public utility’s retail customers; and 
(m) That the reorganization does not adversely affect the location and the 
accessibility of the public utility’s management and operations and does not 
adversely affect the proportion and number of the public utility’s employees 
who reside in the State. 
A-2.  Unless exempted by rule or order of the commission, a reorganization of a 
public utility other than a public utility subject to paragraph A-1 may not take place 
without the approval of the commission. 
(1)  The reorganization of a public utility other than a public utility subject to 
paragraph A-1 may not be approved by the commission unless it is established by 
the applicant for approval that the reorganization is consistent with the interests 
of the public utility's ratepayers and investors.  The commission shall rule upon a 
request for approval of a reorganization under this subparagraph within 60 days 
of the filing of the request for approval.  If it 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. 
(2)  In granting its approval under subparagraph (1), the commission shall impose 
such terms, conditions or requirements as in its judgment are necessary to protect 
the interests of ratepayers.  These conditions must include provisions that ensure: 
(a)  That the commission has reasonable access to books, records, documents 
and other information relating to the public utility or any of its affiliates, 
except that the commission may not have access to trade secrets unless 
access 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; 
(b)  That the commission has all reasonable powers to detect, identify, review 
and approve or disapprove all transactions between affiliated interests; 
(c)  That the public utility's ability to attract capital on reasonable terms, 
including the maintenance of a reasonable capital structure, is not impaired; 
(d)  That the ability of the public utility to provide safe, reasonable and 
adequate service is not impaired; 
(e)  That the public utility continues to be subject to applicable laws, 
principles and rules governing the regulation of public utilities; 
(f)  That the public utility's credit is not impaired or adversely affected; 
(g)  That reasonable limitations are 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; 
(h)  That the commission has reasonable remedial power, including, but not 
limited to, the power, after notice to the public 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 public utility in the event that 
divestiture is necessary to protect the interests of the public utility, ratepayers 
or investors.  A divestiture order must provide a reasonable period within 
which the divestiture must be completed; and 
(i)  That neither ratepayers nor investors are adversely affected by the 
reorganization. 
Sec. 3.  35-A MRSA §708, sub-§4, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read: 
4.  Filing fee.  Within 30 days after the application for approval of a reorganization is 
filed pursuant to subsection 2, the commission may order the applicant to pay a filing fee 
not to exceed $50,000, if the commission determines that the application may involve 
issues which that will necessitate significant additional costs to the commission except 
that, in the case of a public utility subject to subsection 2, paragraph A-1, the commission 
may order the applicant to pay a filing fee not to exceed $100,000.  The applicant may 
request the commission to waive all or a portion of the filing fee.  The commission shall 
rule on the request for waiver within 30 days.  Notwithstanding any other provision of 
law, filing fees paid as required in this subsection shall must be segregated, apportioned 
and expended by the commission for the purposes of processing the application.  Any 
portion of the filing fee that is received from an applicant and is not expended by the 
commission to process the application shall must be returned to the applicant. 
Sec. 4.  35-A MRSA §1101, sub-§1-A is enacted to read: 
1-A.  Standard of approval for sales, mergers and consolidations of large public 
utilities.  Before authorizing a sale, merger, consolidation or other disposition of property 
subject to subsection 1 in which any of the public utilities that are parties to the proposed 
transaction has gross annual state revenues exceeding $50,000,000, the commission must 
find that the proposal: 
A.  Advances the economic development and information access goals of the State as 
set forth in section 7101, subsections 2 and 4 to the extent applicable to the type of 
public utilities involved; 
B.  Results in short-term and long-term economic benefits to ratepayers; 
C.  Is consistent with the interests of the public utility's investors; and 
D.  Is consistent with the interests of the public utility's employees. 
The commission shall impose such terms, conditions or requirements as in its judgment 
are necessary to ensure that the transaction provides an affirmative benefit to the public.  
These conditions must include provisions that ensure that the transaction meets each of 
the factors set forth in section 708, subsection 2, paragraph A-1, subparagraph (2). 
Sec. 5.  35-A MRSA §1103, sub-§1-A is enacted to read: 
1-A.  Standard of approval for sales of large public utilities. Before authorizing a 
sale or other disposition of stock subject to subsection 1 in which any of the public 
utilities that are parties to the proposed transaction has gross annual state revenues 
exceeding $50,000,000, the commission must find that the proposal: 
A.  Advances the economic development and information access goals of the State as 
set forth in section 7101, subsections 2 and 4 to the extent applicable to the type of 
public utilities involved; 
B.  Results in short-term and long-term economic benefits to ratepayers; 
C.  Is consistent with the interests of the public utility's investors; and 
D.  Is consistent with the interests of the public utility's employees. 
The commission shall impose such terms, conditions or requirements as in its judgment 
are necessary to ensure that the transaction provides an affirmative benefit to the public.  
These conditions must include provisions that ensure that the transaction meets each of 
the factors set forth in section 708, subsection 2, paragraph A-1, subparagraph (2). 
Sec. 6.  Application.  Notwithstanding the Maine Revised Statutes, Title 1, section 
302, this Act applies to any decision made by the Public Utilities Commission on or after 
the effective date of this Act, including decisions made in proceedings pending at the 
time this Act takes effect. 
SUMMARY 
This bill requires the Public Utilities Commission to approve a sale, merger, 
consolidation or reorganization involving a public utility with gross annual state revenues 
greater than $50,000,000 only when it is satisfied that the proposal will advance the 
economic development and information access goals of the State, result in economic 
benefits to ratepayers and be consistent with the interests of investors and public utility 
employees.  The bill also allows the commission to charge a filing fee of up to $100,000 
to an applicant for reorganization when the applicant is a public utility that has gross 
annual state revenues greater than $50,000,000.  In the case of a public utility with gross 
annual state revenues totaling $50,000,000 or less, the standard under this bill is the same 
standard as is currently applicable.