An Act To Extend Arrearage Management Programs
Maine Legislature, Session 128, LD 1848
Committee: Energy, Utilities and Technology
Amends: 35-A MRSA §3214, 35-A MRSA §10110

Legislative Document
No. 1848
H.P. 1285
House of Representatives, February 27, 2018
An Act To Extend Arrearage Management Programs
Reported by Representative BERRY of Bowdoinham for the Joint Standing Committee on 
Energy, Utilities and Technology pursuant to the Maine Revised Statutes, Title 35-A, section 
3214, subsection 2-A.
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed pursuant to Joint Rule 218.
ROBERT B. HUNT
Clerk
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3214, sub-§2-A, as enacted by PL 2013, c. 556, §1, is 
amended to read:
2-A.  Arrearage management program.  Each transmission and distribution utility 
shall implement pursuant to this subsection an arrearage management program to assist 
eligible low-income residential customers who are in arrears on their electricity bills.  An 
arrearage management program implemented pursuant to this subsection is a plan under 
which a transmission and distribution utility works with an eligible low-income 
residential customer to establish an affordable payment plan and provide credit to that 
customer toward the customer's accumulated arrears as long as that customer remains in 
compliance with the terms of the program.  The commission shall establish requirements 
relating to the arrearage management programs by rule.  Rules adopted pursuant to this 
subsection are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A.
In adopting rules regarding arrearage management programs, the commission shall:
A.  Consider best practices as developed and implemented in other states or regions;
B.  Require that an arrearage management program include an electricity usage 
assessment at no cost to the participant;
C.  Permit each transmission and distribution utility to propose a start date for its 
program that is no later than October 1, 2015;
D.  Ensure that each transmission and distribution utility develops terms and 
conditions for its arrearage management program in a manner that is consistent with 
the program's objectives and is in the best interests of all ratepayers; and
E.  Ensure that a transmission and distribution utility recovers in rates all costs of 
arrearage management programs, including incremental costs, reconnection fees and 
administrative and marketing costs but not including the amount of any arrearage 
forgiven that is treated as bad debt for purposes of cost recovery by the transmission 
and distribution utility.;
F.  Ensure that a transmission and distribution utility recovers in rates its prudent 
costs for any 3rd-party assistance it receives in administering its arrearage 
management program; and
G.  Permit a transmission and distribution utility to recover in rates its prudent costs 
for providing financial and budgetary guidance to participants whether provided 
directly or through a 3rd party contracted by the transmission and distribution utility 
to provide that guidance.
The Efficiency Maine Trust shall work with transmission and distribution utilities and 
other stakeholders to provide access to a complementary low-income energy efficiency 
program for participants in arrearage management programs in order to help reduce 
participants' energy consumption.
No later than January 28, 2018 2021, the commission shall prepare a report assessing the 
effectiveness of arrearage management programs, including the number of participants 
enrolled in the programs, the number of participants completing the programs, the 
number of participants who have failed to complete the programs, the payment patterns of 
participating customers after completing the programs, the dollar amount of arrears 
forgiven, a comparison of outcomes for those participating in the programs and those not 
participating, the impact on a transmission and distribution utility's bad debt as a result of 
the programs, the costs and benefits to all ratepayers associated with the programs and 
recommendations for ways in which the programs might be improved or continued for 
the benefit of all ratepayers.  In preparing its report, the commission shall hold at least 
one formal stakeholder meeting involving affected parties, including the Office of the 
Public Advocate and the participating transmission and distribution utilities.  Parties must 
also be provided an opportunity to submit written comments to the commission regarding 
the performance of the programs.
The joint standing committee of the Legislature having jurisdiction over utilities matters 
may report out a bill relating to the commission report to the Second First Regular 
Session of the 128th 130th Legislature.
This subsection is repealed September 30, 2018 2021.
Sec. 2.  35-A MRSA §10110, sub-§2, ¶L, as enacted by PL 2013, c. 556, §2, is 
amended to read:
L.  Pursuant to section 3214, subsection 2-A, the trust shall work with transmission 
and distribution utilities and other stakeholders to provide access to a complementary 
low-income energy efficiency program for participants in the arrearage management 
programs in order to help reduce participants' energy consumption.
This paragraph is repealed September 30, 2018 2021.
SUMMARY
This bill is reported out by the Joint Standing Committee on Energy, Utilities and 
Technology pursuant to the Maine Revised Statutes, Title 35-A, section 3214, subsection 
2-A.  The law requires the Public Utilities Commission to provide the committee with a 
report assessing the effectiveness of arrearage management programs and provides the 
committee with the authority to report out a bill relating to the report.
The committee has not taken a position on the substance of this bill, and by reporting 
this bill out, the committee is not suggesting and does not intend to suggest that it agrees 
or disagrees with any aspect of this bill.  The committee is reporting the bill out for the 
sole purpose of turning the proposal of some of the stakeholders into a printed bill that 
can be referred to the committee for an appropriate public hearing and subsequent 
processing in the normal course.  The committee is taking this action to ensure clarity and 
transparency in the legislative review of the proposal.
This bill extends arrearage management programs and the requirement that the 
Efficiency Maine Trust provide access to a complementary low-income energy efficiency 
program for participants in arrearage management programs to September 30, 2021.  It 
establishes a new reporting requirement for the Public Utilities Commission and gives the 
committee authority to report out a bill to the First Regular Session of the 130th 
Legislature based on the report.  It also clarifies that rules adopted by the commission 
must ensure that a transmission and distribution utility recovers its prudent costs for 
3rd-party assistance in administering an arrearage management program and must permit 
a transmission and distribution utility to recover its prudent costs for providing financial 
and budgetary guidance to participating customers, even if the transmission and 
distribution utility has a 3rd party provide that guidance on its behalf.