An Act To Promote Local or Community-based Generation Projects
Maine Legislature, Session 126, LD 1456
Committee: Energy, Utilities and Technology
Sponsors: BOLAND, BOLDUC, CHENETTE, NADEAU
Amends: 35-A MRSA §3105, 35-A MRSA §3144, 35-A MRSA §3201, 35-A MRSA §3210-A

Legislative Document 
No. 1456 
H.P. 1041 
House of Representatives, April 25, 2013 
An Act To Promote Local or Community-based Generation Projects 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative BOLAND of Sanford. 
Cosponsored by Representatives: BOLDUC of Auburn, CHENETTE of Saco, NADEAU of 
Winslow. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3105 is enacted to read: 
§3105.  Meter technology 
An electric meter installed by a transmission and distribution utility for the purpose of 
measuring a consumer's electricity consumption must be an electromechanical meter that 
does not require a switching mode power supply or other conversion of alternating 
current to direct current power in order to operate and that does not contain a radio 
frequency communication device or capacity for such a device. 
Sec. 2.  35-A MRSA §3144 is enacted to read: 
§3144.  Neutral wire certification 
No later than January 1, 2015, the commission shall certify that each domestic 
transmission and distribution utility has installed neutral wires that have the capacity to 
return to the grid 150% of excess power and that the neutral wires return existing power 
at an efficiency rate that is greater than 95% as determined by the commission by rule. 
1.  Neutral wire certification.  By January 1, 2015, and every 5 years thereafter, a 
domestic transmission and distribution utility shall submit documentation to the 
commission and the Office of the Public Advocate demonstrating that the transmission 
and distribution utility's neutral wires meet the requirements of this section.  If, after 
reviewing the documentation in consultation with the Office of the Public Advocate, the 
commission determines that the neutral wires are of adequate size and that the insulation 
and other system components are in sufficiently good condition to meet the requirements 
of this section, the commission shall certify that the domestic transmission and 
distribution utility meets the requirements of this section. 
2.  Report to Legislature.  The commission shall include a report regarding the 
certifications under this section in its annual report under section 120. 
The commission may adopt rules to implement this section.  Rules adopted pursuant 
to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
Sec. 3.  35-A MRSA §3201, sub-§8-A, as enacted by PL 2009, c. 197, §2, is 
amended to read: 
8-A.  Eligible small generator. "Eligible small generator" means a generator that is 
not a small renewable generator as defined in subsection 16-A, that has a generating 
capacity of 5 megawatts or less and generates electricity using: 
A.  A renewable resource, as defined in section 3210, subsection 2, paragraph C; or 
B.  An efficient combined heat and power system. 
Sec. 4.  35-A MRSA §3201, sub-§16-A is enacted to read: 
16-A.  Small renewable generator.  "Small renewable generator" means a generator 
of electricity with a capacity of 10 megawatts or less powered by solar, wind or 
geothermal energy. 
Sec. 5.  35-A MRSA §3210-A, as amended by PL 2009, c. 197, §§3 to 5, is further 
amended to read: 
§3210-A.  Small generator aggregation 
1.  Standard-offer service provider purchase requirement.  In accordance with 
rules adopted pursuant to this section, the commission, at the request of the owner or 
operator of a generator with a capacity of 5 megawatts or less that is not a small 
renewable generator, shall: 
A.  If the generator is located in an area of this State within the New England 
independent system operator control area, require a standard-offer service provider 
that serves an area of this State within the New England independent system operator 
control area to purchase the output of that generator at applicable market clearing 
prices or at such other prices determined by the commission to be financially neutral 
to the standard-offer service provider; and 
B.  If the generator is located in an area of this State in which the retail market is 
administered by the independent system administrator for northern Maine and the 
commission finds that the market design will accommodate purchases in a manner 
that is financially neutral to the standard-offer service provider, require a standard-
offer service provider that serves that area of the State, or a portion of that area, to 
purchase the output of that generator at prices determined by the commission to be 
financially neutral to the standard-offer service provider. 
The requirements of this subsection apply only if they can be accomplished in a manner 
that is financially neutral to standard-offer service providers. 
1-A.  Standard-offer service provider purchase requirement for small renewable 
generators.  In accordance with rules adopted pursuant to this section, the commission, at 
the request of the owner or operator of a small renewable generator, shall:  
A.  If the small renewable generator is located in an area of this State within the New 
England independent system operator control area, require a standard-offer service 
provider that serves an area of this State within the New England independent system 
operator control area to purchase the output of that generator at prices determined by 
the commission in accordance with paragraph C; 
B.  If the small renewable generator is located in an area of this State in which the 
retail market is administered by the independent system administrator for northern 
Maine, require a standard-offer service provider that serves that area of the State, or a 
portion of that area, to purchase the output of that generator at prices determined by 
the commission in accordance with paragraph C; and 
C.  Set the rates for the purchase of the electricity generated from the small renewable 
generator as follows: 
(1)  Except for a small renewable generator that meets the criteria of 
subparagraph (4), for the first 10 years of operation from the time the small 
renewable generator is connected to the grid, the standard-offer service provider 
shall pay 50¢ per kilowatt hour or 4 times the current average retail price for 
electricity in the State as determined by the commission, whichever is higher; 
(2)  Except for a small renewable generator that meets the criteria of 
subparagraph (4), for the time frame of between 11 years and 15 years of 
operation from the time the small renewable generator is connected to the grid, 
the utility shall pay the small renewable generator 30¢ per kilowatt hour or 2 
times the current average retail price for electricity in the State as determined by 
the commission, whichever is higher; 
(3)  Except for a small renewable generator that meets the criteria of 
subparagraph (4), after 15 years of operation from the time the small renewable 
generator is connected to the grid, the utility shall pay the small renewable 
generator the average wholesale market price for electricity in the State as 
determined by the commission; and  
(4)  If 75% or more of a small renewable generator’s component parts are 
manufactured in the State, then the initial 10-year purchasing price under 
subparagraph (1) is for the first 15 years of operation from the time the small 
renewable generator is connected to the grid, and the purchasing price under 
subparagraph (2) is for the time frame of between 15 years and 25 years of 
operation from the time the small renewable generator is connected to the grid, so 
that a utility does not pay a small renewable generator the average wholesale 
market price for electricity in the State under subparagraph (3) until the small 
renewable generator has been operational and connected to the grid for 25 years. 
2.  Transmission and distribution utility administration.  Transmission and 
distribution utilities shall administer the purchase and sale of electricity to a standard-
offer service provider required under subsection subsections 1 and 1-A.  Administrative 
costs incurred by a transmission and distribution utility under this subsection must be 
paid, in a manner established by the commission, by the generators of the electricity the 
purchase and sale of which the utility administers. 
2-A.  Purchase by competitive electricity providers.  In addition to its obligations 
under subsection 2, a transmission and distribution utility may administer on behalf of 
any eligible small generator or small renewable generator the purchase and sale of 
electricity to a competitive electricity provider.  In carrying out this function, a 
transmission and distribution utility may in its discretion aggregate the output of multiple 
eligible small generators and small renewable generators for the purpose of obtaining the 
most favorable purchase price on behalf of the generators.  The parties to any resulting 
sale must be the eligible small generators or small renewable generators and the 
competitive electricity provider. 
If a transmission and distribution utility aggregates the output of eligible small generators 
or small renewable generators under this subsection and is unable to sell the aggregated 
output to a competitive electricity provider, the transmission and distribution utility shall 
administer the purchase and sale of the aggregated output to a standard-offer service 
provider in accordance with the provisions of subsections 1, 1-A and 2. 
3.  Rules.  The commission shall adopt rules to implement the provisions of 
subsections 1, 1-A and 2, including, but not limited to, rules identifying how the 
commission assigns purchasing obligations to particular standard-offer service providers 
and, the timing and manner of such obligations and the method used by the commission 
to determine the percentage of a small renewable generator's component parts that are 
manufactured in the State.  The commission may adopt rules and may amend any rules 
necessary to implement the requirements of subsection 2-A, including rules to allow a 
transmission and distribution utility to collect an administrative fee from participating 
eligible small generators and small renewable generators to cover reasonable costs 
incurred by the transmission and distribution utility under subsection 2-A.  Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 6.  Recommendations and report.  The Public Utilities Commission shall 
develop a set of recommendations including tax and regulatory incentives to encourage 
the development of decentralized microgrids or community-based or neighborhood-based 
clean energy generation facilities using solar, wind and geothermal energy as 
nontransmission alternatives. Those recommendations must be submitted to the Joint 
Standing Committee on Energy, Utilities and Technology by January 5, 2014. The Joint 
Standing Committee on Energy, Utilities and Technology may report out legislation 
based on the set of recommendations submitted by the commission during the Second 
Regular Session of the 126th Legislature. 
SUMMARY 
This bill: 
1.  Requires that all meters installed by an electric transmission and distribution 
utility be electromechanical; 
2.  Requires that electric transmission and distribution utilities have neutral wires 
with the capacity to return 150% of excess power to the grid and that the wires return 
existing power at a rate that is greater than 95%.  The commission is required to certify 
that transmission and distribution utilities meet this standard for neutral wires; 
3.  Creates a new class of electricity generators, small renewable generators, for the 
purposes of requiring a standard-offer service provider to purchase the electricity 
generated from the small renewable generators at rates higher than market value for the 
first 15 to 25 years that the generator is connected to the grid; and 
4.  Directs the Public Utilities Commission to develop a set of recommendations 
including tax and regulatory incentives to encourage the development of decentralized 
microgrids or community-based or neighborhood-based clean energy generation facilities 
using solar, wind and geothermal energy as nontransmission alternatives.