An Act To Provide for Affordable Long-term Energy Prices in Maine
Maine Legislature, Session 128, LD 1513
Committee: Energy, Utilities and Technology
Sponsors: FREDETTE, WADSWORTH
Amends: 35-A MRSA §3210-C

Legislative Document
No. 1513
H.P. 1037
House of Representatives, April 25, 2017
An Act To Provide for Affordable Long-term Energy Prices in 
Maine
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative FREDETTE of Newport.
Cosponsored by Representative: WADSWORTH of Hiram.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  35-A MRSA §3210-C, sub-§3, as amended by PL 2013, c. 424, Pt. A, 
§20, is further amended to read: 
3.  Commission authority.  The commission may direct investor-owned 
transmission and distribution utilities to enter into long-term contracts for: 
A.  Capacity resources;  
B.  Any available energy associated with capacity resources contracted under 
paragraph A: 
(1)  To the extent necessary to fulfill the policy of subsection 2, paragraph A; or 
(2)  If the commission determines appropriate for purposes of supplying or 
lowering the cost of standard-offer service or otherwise lowering the cost of 
electricity for the ratepayers in the State.  Available energy contracted pursuant to 
this subparagraph may be sold into the wholesale electricity market in 
conjunction with solicitations for standard-offer supply bids; and 
C.  Any available renewable energy credits associated with capacity resources 
contracted under paragraph A.  The price paid by the investor-owned transmission 
and distribution utility for the renewable energy credits must be lower than the price 
received for those renewable energy credits at the time they are sold by the 
investor-owned transmission and distribution utility. 
The commission may permit, but may not require, investor-owned transmission and 
distribution utilities to enter into contracts for differences that are designed and intended 
to buffer ratepayers in the State from potential negative impacts from transmission 
development.  To the greatest extent possible, the commission shall develop procedures 
for long-term contracts for investor-owned transmission and distribution utilities under 
this subsection having the same legal and financial effect as the procedures used for 
standard-offer service pursuant to section 3212 for investor-owned transmission and 
distribution utilities. 
The commission may enter into contracts for interruptible, demand response or energy 
efficiency capacity resources.  These contracts are not subject to the rules of the State 
Purchasing Agent.  In a competitive solicitation conducted pursuant to subsection 6, the 
commission shall allow transmission and distribution utilities to submit bids for 
interruptible or demand response capacity resources. 
Capacity resources contracted under this subsection may not exceed the amount 
necessary to ensure the reliability of the electric grid of this State, to meet the energy 
efficiency program budget allocations articulated in the triennial plan as approved by the 
commission pursuant to section 10104, subsection 4 or any annual update plan approved 
by the commission pursuant to section 10104, subsection 6 or to lower customer costs as 
determined by the commission pursuant to rules adopted under subsection 10. 
The commission may not direct an investor-owned transmission and distribution utility to 
enter into a long-term contract under this section unless the commission determines that 
the instate economic benefits substantially outweigh the expected costs of the contract. 
Unless the commission determines the public interest requires otherwise, a capacity 
resource may not be contracted under this subsection unless the commission determines 
that the capacity resource is recognized as a capacity resource for purposes of any 
regional or federal capacity requirements. 
The commission shall ensure that any long-term contract authorized under this subsection 
is consistent with the State's goals for greenhouse gas reduction under Title 38, section 
and the regional greenhouse gas initiative as described in the state climate action plan 
required in Title 38, section 577. 
SUMMARY 
This bill prohibits the Public Utilities Commission from directing an investor-owned 
transmission and distribution utility to enter into a long-term contract for capacity 
resources or energy or renewable energy credits associated with capacity resources unless 
the commission determines that the instate economic benefits substantially outweigh the 
expected costs of the contract.