An Act To Increase Maine's Energy Competitiveness
Maine Legislature, Session 126, LD 0697
Committee: Energy, Utilities and Technology
Sponsors: KATZ, KRUGER, CAIN, GERZOFSKY, GOODALL, SAVIELLO, THIBODEAU, YOUNGBLOOD, DION, GRAHAM
Amends: 35-A MRSA §2111

Legislative Document 
No. 697 
S.P. 246 
In Senate, February 26, 2013 
An Act To Increase Maine's Energy Competitiveness 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator KATZ of Kennebec. 
Cosponsored by Representative KRUGER of Thomaston and 
Senators: CAIN of Penobscot, GERZOFSKY of Cumberland, GOODALL of Sagadahoc, 
SAVIELLO of Franklin, THIBODEAU of Waldo, YOUNGBLOOD of Penobscot, 
Representatives: DION of Portland, GRAHAM of North Yarmouth. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §2111 is enacted to read: 
§2111.  Efficient fuel switching financing 
1.  Eligible utilities.  A transmission and distribution utility or a gas utility may 
provide a grant or loan to a qualifying customer for the cost of the installation of 
qualifying fuel switching equipment for a building or facility receiving service within the 
utility's service territory, including the cost associated with installing new or enhanced 
connection facilities.  The financing charge for a loan must be established by the utility.  
The utility may include in its rate base the reasonable cost of any grant and the reasonable 
cost of any loan in excess of amounts recovered from borrowers and may earn a return on 
such costs based on the utility's weighted average cost of capital as established by the 
commission for the utility's distribution service and recovered through rates recoverable 
from all customers.  For purposes of this section, costs of a grant or loan that causes a 
reduction in greenhouse gas emissions from the affected end uses or that reduces the 
customer's cost of energy consumption for affected end uses by more than 20% are 
presumptively reasonable. 
2.  On-bill financing.  To facilitate the repayment of a loan made under subsection 1, 
periodic financing payments may be included on the bill for utility service that is issued 
by the qualifying customer's transmission and distribution utility or gas utility, as the case 
may be.  Any administrative or other costs to the utility associated with on-bill financing, 
including any collection, delinquency or bad debt expenses, must be recovered and 
retained by the utility as part of the financing payments made by a customer who receives 
a loan under subsection 1. 
3.  Rate-making treatment.  The costs and earnings of a transmission and 
distribution utility or a gas utility attributable to grants and loans made under subsection 1 
must be accounted for as direct costs and earnings of the utility for rate-making purposes, 
and such activities may not be considered unregulated activities under section 713. 
4.  Rulemaking.  The commission shall adopt any rules necessary to administer this 
section.  Rules adopted under this subsection are routine technical rules pursuant to Title 
5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill allows transmission and distribution utilities and gas utilities to provide 
grants and loans, including loans with on-bill financing, for customers converting to 
alternative energy sources.