An Act To Address Rising Electric Transmission Rates
Maine Legislature, Session 126, LD 1060
Committee Amendment CA_A_H646 (House)
Amends: 35-A MRSA §3209-A

COMMITTEE AMENDMENT" A" to H.P. 753, L.D. 1060, Bill, "An Act To 
Address Rising Electric Transmission Rates" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Lower Electrical Costs through Transmission Alternatives and 
Renewable Sources' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 35-A MRSA §3209-A, as enacted by PL 2011, c. 262, § 1, is amended to 
read: 
§3209-A. Net energy billing 
The commission may adopt or amend rules governing net energy billing in 
accordance with this section. Rules adopted or amended under this subseotion section are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. "Net energy 
billing" means a billing and metering praotioe under ",!hich a customer is billed on the 
basis of net energy over the billing period taking into account accumulated unused 
kilowatt hour credits from the previous billing period. 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Eligible facility" means an electric generating facility that uses a renewable fuel 
or technology as outlined in section 3210, subsection 2, paragraph C, subparagraph 
(2), divisions (a) to (h) or a micro-combined heat and power system as defined by the 
commission by rule. 
B. 
"Net energy billing" means a billing and metering practice under which a 
customer is billed on the basis of net energy over the billing period taking into 
account accumulated unused kilowatt-hour credits from the previous billing period. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 753, L.D. \060 
2. Rules. Rules adopted under this section must include, but are not limited to, 
provisions that result in the following: 
A. A customer of a transmission and distribution utility may elect net energy billing; 
B. An eligible facility located in an investor-owned transmission and distribution 
utility territory may not have an installed capacity greater than one megawatt. An 
eligible facility located in a consumer-owned transmission and distribution utility 
territory may not have an installed capacity greater than 100 kilowatts unless the 
consumer-owned transmission and distribution utility elects to allow facilities with an 
installed capacity of up to one megawatt to be eligible for net energy billing; and 
C. A customer of an investor-owned transmission and distribution utility must be 
compensated for any accumulated unused kilowatt-hour credits at the end of a 
12-month period at a rate that represents the value of wholesale electricity as 
determined by the cOlmnission by rule, except that the commission may adjust the 
amount disbursed to a customer under this paragraph in order to offset the costs to the 
transmission and distribution utility to meet the requirements of this paragraph. A 
consumer-owned transmission and distribution utility may elect to compensate a 
customer for any accumulated unused kilowatt-hour credits at the end of a 12-month 
period in accordance with this paragraph. 
Sec. 2. Report. The Public Utilities COlmnission, referred to in this section as "the 
commission," in consultation with the State's investor-owned transmission and 
distribution utilities, the Efficiency Maine Trust and others shall submit a report to the 
joint standing committee of the Legislature having jurisdiction over energy and utilities 
matters by January 7, 2015. The purpose of the report is to identify areas of stress or areas 
with reliability deficiencies in the transmission and distribution system, including all 
transmission, subtransmission and distribution system upgrades and investments subject 
to state jurisdiction, as early as possible in order to allow sufficient time to plan and 
implement more cost-effective alternatives to building or upgrading distribution lines to 
meet reliability needs. In the report, the commission shall: 
1. 
Identify, using a 10-year projection, existing and potential areas of stress or 
reliability deficiencies ofthe State's investor-owned transmission and distribution utilities' 
transmission and distribution systems by location within this State and display those areas 
on one or more maps; 
2. Prioritize the areas of stress or reliability deficiencies identified in subsection 1 
based on estimates of the times and circumstances under which these areas would require 
transmission, subtransmission or distribution system build-out or upgrades in absence of 
further action; 
3. Describe the likely manner of resolving the deficiencies in areas prioritized in 
subsection 2 through transmission, subtransmission or distribution system build-out or 
upgrades, including the likely costs; 
4. Describe under which circumstances distributed generation, demand response, 
energy efficiency or other nondistribution strategies or nontransmission strategies might 
address the deficiencies at a lower cost than the costs identified in subsection 3; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 753, L.D. 1060 
5. Recommend an appropriate year for the existing and potential areas of stress or 
reliability deficiencies in this State to be reevaluated; and 
6. 
Provide any other information or recommendations the commission considers 
relevant to policy decisions related to using distributed generation, demand response, 
energy efficiency or other nondistribution alternatives or nontransmission strategies to 
address potential 
areas 
of stress 
or reliability deficiencies in 
transmission, 
subtransmission or distribution systems in this State. 
The joint standing committee of the Legislature having jurisdiction over energy and 
utilities matters may report out a bill related to the subject matter of the report to the First 
Regular Session of the 127th Legislature. ' 
SUMMARY 
This amendment is the majority report of the Joint Standing Committee on Energy, 
Utilities and Technology. This amendment strikes and replaces the bill. This amendment 
increases the capacity limit of eligible facilities under the net energy billing program from 
kilowatts to one megawatt. This amendment directs the Public Utilities Commission 
to adopt rules requiring investor-owned transmission and distribution utilities to 
compensate customers that generate accumulated unused kilowatt-hour credits under the 
net energy billing program at a value that represents the wholesale value of electricity. 
The amendment further directs the Public Utilities Commission in consultation with the 
State's investor-owned transmission and distribution utilities, the Efficiency Maine Trust 
and others to submit a report to the joint standing committee of the Legislature having 
jurisdiction over energy and utilities matters by January 7, 2015. The purpose of the 
report is to identify areas of stress or reliability deficiencies in the transmission and 
distribution system as early as possible in order to allow sufficient time to plan and 
implement more cost-effective alternatives to building or upgrading distribution lines to 
meet reliability needs. 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 02/18/14 wac 
LD 1060 
LR 1120(02) 
An Act To Address Rising Electric Transmission Rates 
Fiscal Note for Bill as Amended by Committee Amendment "1\' L Ii -to % ') 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - Other Special Revenue Funds 
The bill requires the Public Utilities Commission (PUC) to engage in rulemaking involving net energy billing. The 
PUC, in consultation with Efficiency Maine Trust and others, must also submit a report to the Legislature on the needs 
of the transmission and distribution system. The PUC and Efficiency Maine Trust have adequate available resources 
for expenses related to these required activities. 
LRl120(02) - Fiscal Note - Page 1 of 1