An Act To Ensure That Telephone Utility Reorganizations Advance the Economic Development and Information Access Goals of the State
Maine Legislature, Session 127, LD 0882
Committee: Energy, Utilities and Technology
Sponsors: HOBBINS, DION, GIDEON
Amends: 35-A MRSA §708

Legislative Document 
No. 882 
H.P. 601 
House of Representatives, March 12, 2015 
An Act To Ensure That Telephone Utility Reorganizations Advance 
the Economic Development and Information Access Goals of the 
State 
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative HOBBINS of Saco. 
Cosponsored by Representatives: DION of Portland, GIDEON of Freeport, McCABE of 
Skowhegan. 
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 amended to read: 
A.  Unless exempted by rule or order of the commission, no reorganization may take 
place without the approval of the commission.  No reorganization may be approved 
by the commission unless it is established by the applicant for approval that the 
reorganization is consistent with the interests of the utility's ratepayers and investors.  
The commission shall rule upon all requests for approval of a reorganization within 
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.  In granting its approval, the 
commission shall impose such terms, conditions or requirements as, in its judgment, 
are necessary to protect the interests of ratepayers.  These conditions shall must 
include provisions which assure the following that ensure: 
(1)  That the commission has reasonable access to books, records, documents and 
other information relating to the utility or any of its affiliates, except that the 
Public Utilities Commission may not have access to trade secrets unless it 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; 
(2)  That the commission has all reasonable powers to detect, identify, review and 
approve or disapprove all transactions between affiliated interests; 
(3)  That the utility's ability to attract capital on reasonable terms, including the 
maintenance of a reasonable capital structure, is not impaired; 
(4)  That the ability of the utility to provide safe, reasonable and adequate service 
is not impaired; 
(5)  That the utility continues to be subject to applicable laws, principles and 
rules governing the regulation of public utilities; 
(6)  That the utility's credit is not impaired or adversely affected; 
(7)  That reasonable limitations be 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; 
(8)  That the commission has reasonable remedial power including, but not 
limited to, the power, after notice to the 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 utility in the event that divestiture is necessary to 
protect the interest of the utility, ratepayers or investors.  A divestiture order shall 
must provide a reasonable period within which the divestiture shall must be 
completed; and 
(9)  That neither ratepayers nor investors are adversely affected by the 
reorganization. 
Sec. 2.  35-A MRSA §708, sub-§2, ¶A-1 is enacted to read: 
A-1.  Unless exempted by rule or order of the commission, in addition to the 
requirements under paragraph A, before approving a reorganization in which any of 
the public utilities that are parties to the proposed transaction is a telephone utility 
that has gross annual state revenues exceeding $50,000,000, the commission: 
(1)  Must find that the proposal will advance the economic development and 
information access goals of the State as set forth in section 7101, subsections 2 
and 4; 
(2)  Must find that the reorganization does not result in changes to the location 
and the accessibility of the telephone utility's management and operations, or the 
proportion and number of the telephone utility's employees who reside in the 
State, that would adversely affect safety, reliability or quality of service; and 
(3)  Shall impose such terms, conditions or requirements as in the commission's 
judgment are necessary to ensure that the reorganization provides an affirmative 
benefit to the public. 
Sec. 3.  35-A MRSA §708, sub-§6 is enacted to read: 
6.  Time for approval.  The commission shall rule upon all requests for approval of a 
reorganization, except the approval of a reorganization subject to subsection 2, paragraph 
A-1, within 60 days of the filing of the request for approval.  If the commission 
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. 
SUMMARY 
This bill requires the Public Utilities Commission to consider additional requirements 
before approving a reorganization involving a telephone utility with gross annual state 
revenues greater than $50,000,000. The commission may approve the reorganization only 
when it is satisfied that the proposal will advance the economic development and 
information access goals of the State; that the reorganization does not result in changes to 
the location and the accessibility of the telephone utility's management and to 
employment levels in a manner that would adversely affect safety, reliability or quality of 
service; and that the reorganization provides an affirmative benefit to the public. The bill 
also removes the requirement that the Public Utilities Commission rule upon a request for 
the reorganization of a large telephone utility within 180 days.