An Act To Make Efficient Electric Heat Pumps Available to Utility Customers, Including Low-income Customers
Maine Legislature, Session 127, LD 1558
Committee Amendment CA_A_H586 (House)
Amends: 35-A MRSA §3105

COMMITTEE AMENDMENT "~ " to H.P. 1061, L.D. 1558, Bill, "An Act To 
Make Efficient Electric Heat Pumps Available to Utility Customers, Including Low-
income Customers" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Enable Low-income and Other Customers Greater Access To Efficient 
Electric Heat Pumps through Unique Financing and Third-party Installation and 
Maintenance' 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 35-A MRSA §3105 is enacted to read: 
§3105. Heat pump program 
Notwithstanding any other provision of law, a transmission and distribution utility 
may develop and implement, upon approval of the commission, a program within its 
service territory to enable customers to access the benefits of efficient electric heat pumps 
as set forth in this section and may advertise the availability of its program to its 
customers. The program may serve any customer but must target low-income customers, 
senior citizens, customers who are unable to finance the purchase of a heat pump, 
customers who reside in rental dwellings and small businesses. For pw:poses of this 
section, "efficient electric heat pump" means an electric heat pump that is consistent with 
eligibility criteria of the Efficiency Maine Trust, as established in section 10103, or 
criteria established by the commission by rule if the Efficiency Maine Trust does not 
establish such criteria. Rules adopted by the commission pursuant to this section are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
1. Approval; activities of the utility. A transmission and distribution utility that 
elects to offer a program pursuant to this section must submit a proposed program to the 
commission for approval. The commission shall examine the proposed program and, if it 
finds the proposed program is reasonably designed and consistent with the provisions and 
program elements of this section, shall approve the program. Notwithstanding any 
provision of law limiting the amount of investment or revenue a utility may make or 
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COMMITTEEAMENDMENT"A "toH.P.1061,L.D.1558 
receive in a business venture separate from the delivery of electricity, all activities of a 
transmission and distribution utility under an approved program must be considered an 
unregulated business venture of the utility in accordance with section 713. The prudent 
costs associated with the program are recoverable only from customers participating in a 
program through just and reasonable rates and charges approved by the commission. 
2. 
Program elements. A transmission and distribution utility may. subject to 
approval under subsection 1, elect to offer a program consistent with the program 
elements set forth under paragraph A or B. or both. 
Based on the best available 
information at the outset of the program, the overall energy costs to customers under a 
program must be expected to decrease as a result of participation in the program, as 
measured by the overall energy costs to customers over the lifespan of the efficient 
electric heat pumps, regardless of the source of energy, and the costs associated with 
participation in the program. 
A. 
A transmission and distribution utility may offer incentives to customers 
participating in the program to acquire efficient electric heat pumps from 3rd-party 
sellers or installers to be used to reduce the total installation cost of such heat pumps. 
B. A transmission and distribution utility may provide an efficient electric heat pump 
to a customer within its service territory who requests a heat pump and who elects not 
to purchase and install a heat pump due to income or other reasons. The utility may 
own the heat pump provided to a customer participating in the program and may 
charge the customer for the costs associated with providing and maintaining the heat 
pump. Any such program must meet the following requirements: 
(1) If the participating customer is delinquent in payments under the program, 
the utility may undertake reasonable debt collection activities as approved by the 
commission and otherwise consistent with applicable law, but in no event may 
the customer's primary electric service be disconnected as a result of the 
customer's delinquency under the program nor may electric service to a heat 
pump serving as the only heating source for the customer be disconnected during 
the winter; 
(2) The utility must allow participating customers to select a qualified 3rd-party 
heat pump seller and installer and must use qualified 3rd-party installers to 
maintain and repair the heat pumps provided to customers. To be qualified, an 
installer must be listed as a registered vendor by the Efficiency Maine Trust, as 
established in section 10103, for purposes of heat pump installations or 
determined qualified by the commission by rule if the Efficiency Maine Trust 
does not maintain a registry of vendors; 
(3) The utility must provide participating customers with the option, through a 
plain language notice, to later buy the heat pump provided at reasonable terms 
approved by the commission; 
(4) At any time, a participating customer may elect to have the customer's heat 
pump removed at no cost or penalty; and 
(5) Before a customer elects to participate in the program, the customer must be 
provided a plain language notice comparing the costs of the program with the 
COMMITTEE AMENDMENT 
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COMMITTEEAMENDMENT"A "toH,P.1061,L.D.1558 
costs of directly purchasing a heat pump, including any applicable rebates or 
incentives available for purchasing such equipment. 
3. Utility to provide information. 
A transmission and distribution utility that 
implements a program under this section shall, upon request from the commission, 
provide sufficient information to demonstrate that the program is meeting the 
requirements of this section. In addition, the utility shall provide a triennial report to the 
commission outlining the degree to which the program is meeting the needs of customers, 
including the needs of customers required to be targeted under this section. 
Nothing in this section is intended to limit the authority of the commission to 
establish electric distribution rates for customers participating in a program under this 
section.' 
SUMMARY 
This amendment is the majority report of the committee. Like the bill, the amendment 
allows a transmission and distribution utility to implement a program to provide efficient 
electric heat pumps to its customers. Unlike the bill, the amendment clarifies that all 
activities of a transmission and distribution utility under an approved program are 
considered an unregulated business venture of the utility, rather than regulated activities 
of the utility subject to regulation by the Public Utilities Commission as a utility service. 
The amendment also does the following. 
1. It specifies that while all customers of a utility may participate in a program, the 
program is to target specific customers, such as low-income customers, senior citizens, 
customers who are unable to finance the purchase of a heat pump, customers who reside 
in rental dwellings and small businesses. 
2. It makes clear that the sale, installation and maintenance of a heat pump are to 
occur through 3rd-party sellers and installers chosen by the customer. 
3. 
It prohibits a transmission and distribution utility from disconnecting 
for 
delinquent payments electric service to a heat pump serving as the only heating source for 
the customer during the winter. 
4. It specifies that, at any time, a participating customer may elect to have that 
customer's heat pump removed at no cost or penalty. 
5. It requires that a transmission and distribution utility must provide participating 
customers a plain language notice that they have the option to buy the heat pump. 
6. 
It requires a plain language notice be provided before a cu,stomer elects to 
participate in the program that compares the costs of the program with the costs of 
directly purchasing a heat pump, including any applicable rebates or incentives available 
for purchasing such equipment. 
7. It clarifies that an efficient electric heat pump is one that is consistent with the 
Efficiency Maine Trust eligibility criteria or criteria established by the commission by 
rule if the Efficiency Maine Trust does not establish such criteria and that a qualified heat 
pump installer is any installer that is listed as a registered vendor by the Efficiency Maine 
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COMMITTEE AMENDMENT" A" to H.P. 1061, L.D. 1558 
Trust for purposes of heat pump installations or as determined by the commission by rule 
if the Efficiency Maine Trust does not maintain a registry of vendors. 
8. It clarifies that the determination that the overall energy costs to customers under a 
program decrease as a result of participation in the program is based on the best available 
information at the outset of the program. 
9. It requires the utility to provide a triennial report to the commission outlining the 
degree to which the program is meeting the needs of customers, including the needs of 
customers targeted under this legislation. 
The amendment retains the provision of the bill that repeals the provision of Public 
Law 2011, chapter 637 that allows transmission and distribution utilities to develop and 
implement similar pilot programs. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/18/16 feac 
LD 1558 
LR2435(02) 
An Act To Make Efficient Electric Heat Pumps Available to Utility Customers, Including Low-income 
Fiscal Detail and Notes 
Customers 
\ 
Fiscal Note for Bill as Amended by Committee Amendment •A{ H 
.... 5 80) 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Any additional costs to the Public Utilities Commission to allow and approve programs implemented by transmission 
and distribution utilities involving efficient electric heat pumps are expected to be minor and can be absorbed within 
existing budgeted resources. 
LR2435(02) - Fiscal Note - Page I of I