An Act To Control Electricity Transmission Costs through the Development of Nontransmission Alternatives
Maine Legislature, Session 128, LD 1487
Committee: Energy, Utilities and Technology
Sponsors: DION
Amends: 35-A MRSA §3132, 35-A MRSA §3132-A, 35-A MRSA §3143

Legislative Document
No. 1487
S.P. 516
In Senate, April 19, 2017
An Act To Control Electricity Transmission Costs through the 
Development of Nontransmission Alternatives
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator DION of Cumberland.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3132, sub-§2-C, ¶B, as amended by PL 2013, c. 369, Pt. 
C, §2, is further amended to read: 
B.  Justification for adoption of the route selected, including comparison with 
alternative routes that are environmentally, technically and economically practical; 
and 
Sec. 2.  35-A MRSA §3132, sub-§2-C, ¶C, as amended by PL 2013, c. 369, Pt. 
C, §2, is repealed. 
Sec. 3.  35-A MRSA §3132, sub-§2-D is enacted to read: 
2-D.  Nontransmission alternatives.  Upon receipt of a petition for approval of a 
proposed transmission line, the commission shall direct the smart grid coordinator under 
section 3143 to develop a nontransmission alternative to the proposed transmission line.  
The costs incurred by the smart grid coordinator in developing the nontransmission 
alternative must be paid by the person submitting the petition for the transmission line.  
The nontransmission alternative must meet the same reliability standards as those 
required for the transmission line over the relevant planning period, and the smart grid 
coordinator must set forth the total projected costs of the nontransmission alternative over 
the effective life of the proposed transmission line.  If the person proposing the 
transmission line is a transmission and distribution utility and the commission determines 
that it is in the public interest to proceed with the nontransmission alternative developed 
by the smart grid coordinator, the prudently incurred costs of the nontransmission 
alternative are just and reasonable for rate-making purposes. 
Sec. 4.  35-A MRSA §3132-A, sub-§1, as enacted by PL 2013, c. 369, Pt. C, §8, 
is repealed and the following enacted in its place: 
1.  Submission requirement.  A person that proposes to undertake a transmission 
project shall provide the commission with a description of the need for the proposed 
transmission project. 
Sec. 5.  35-A MRSA §3132-A, sub-§1-A is enacted to read: 
1-A.  Nontransmission alternatives.  Upon receipt of a request by a person to 
undertake a transmission project, the commission shall direct the smart grid coordinator 
under section 3143 to develop a nontransmission alternative to the transmission project.  
The costs incurred by the smart grid coordinator in developing the nontransmission 
alternative must be paid by the person seeking to undertake the transmission project.  The 
nontransmission alternative must meet the same reliability standards as those required for 
the transmission project over the relevant planning period, and the smart grid coordinator 
must set forth the total projected costs of the nontransmission alternative over the 
effective life of the proposed transmission project.  If the person proposing to undertake a 
transmission project is a transmission and distribution utility and the commission 
determines that it is in the public interest to proceed with the nontransmission alternative 
developed by the smart grid coordinator, the prudently incurred costs of the 
nontransmission alternative are just and reasonable for rate-making purposes. 
Sec. 6.  35-A MRSA §3143, sub-§1, ¶B, as enacted by PL 2009, c. 539, §2, is 
amended to read: 
B.  "Smart grid coordinator" means an entity, authorized appointed by the 
commission in accordance with subsection 5 5-A, that manages access to smart grid 
functions and associated infrastructure, technology and applications within the 
service territory of a transmission and distribution utility. 
Sec. 7.  35-A MRSA §3143, sub-§5, as enacted by PL 2009, c. 539, §2, is 
repealed. 
Sec. 8.  35-A MRSA §3143, sub-§5-A is enacted to read: 
5-A.  Smart grid coordinator; appointment by the Public Utilities Commission; 
qualifications; responsibilities.  The commission shall appoint at least one smart grid 
coordinator to serve all transmission and distribution utility service territories.  A smart 
grid 
coordinator 
appointed 
under 
this 
subsection 
shall 
operate 
under 
a 
commission-approved contract with a transmission and distribution utility or in some 
other manner as approved by the commission.  The smart grid coordinator: 
A.  Must be an entity incorporated in the State; 
B.  May not be a transmission and distribution utility located in the State or an 
affiliate of a transmission and distribution utility located in the State; and 
C.  Must have a demonstrated record of developing, operating and managing 
nontransmission alternatives. 
The duties and responsibilities of the smart grid coordinator include the development, 
implementation, operation and management of nontransmission alternatives approved by 
the commission pursuant to sections 3132 and 3132-A and any other duties and 
responsibilities that are consistent with this section and rules established by the 
commission.  Rules adopted pursuant to this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
SUMMARY 
This bill changes the requirement regarding the development, implementation, 
operation and management of nontransmission alternatives for proposed transmission 
lines and proposed transmission projects.  This bill requires that a smart grid coordinator 
appointed by the Public Utilities Commission develop a nontransmission alternative to a 
proposed transmission line or proposed transmission project.  
The bill provides that a smart grid coordinator must be an entity incorporated in the 
State; may not be a transmission and distribution utility located in the State or an affiliate 
of a transmission and distribution utility located in the State; and must have a 
demonstrated record of developing, operating and managing nontransmission alternatives.