An Act Regarding Compensation by Large Transmission and Distribution Utilities
Maine Legislature, Session 128, LD 1729
Committee Amendment CA_A_S467 (Senate)

COMMITTEE AMENDMENT "A" to S.P. 628, L.D. 1729, Bill, "An Act 
Regarding Compensation by Large Transmission and Distribution Utilities" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Restore Confidence in Utility Billing Systems' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 35-A MR.SA §113, sub-§3, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read: 
3. Costs. The full cost of the management audit shall must be recovered from 
ratepayers, except that if the audit of an investor-owned public utility contributes to a 
commission finding of imprudence that results in a cost disallowance, the commission 
shall determine how to fairly allocate the cost of the management audit to ratepayers and 
the shareholders of the investor-owned public utility. 
In ordering an audit, the 
commission shall consider the impact of the cost of the audit upon the ratepayers and 
other alternatives that are available. 
Sec. 2. 35-A MR.SA §3104-A is enacted to read: 
§3104-A. Metering and billing system accuracy 
A transmission and distribution utility shall conduct testing of its metering and billing 
systems in accordance with rules adopted by the commission. 
1. System accuracy; rulemaking. The commission shall amend or adopt rules 
governing the testing of the metering and billing systems of transmission and distribution 
utilities to ensure accuracy regarding the measurement of the usage of electricity and the 
determination of customer bills. Rules adopted by the commission must include but are 
not limited to requirements for the following: 
A. The frequency of testing of the metering and billing systems: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 628, L.D. 1729 
B. 
The method by which the transmission and distribution utility shall conduct 
testing of its metering and billing system: and 
C. The statistical analysis to be used as part of the testing procedures. 
The commission may adopt alternative testing procedures based on different metering or 
billing system technologies, such as for analog meters and digital meters. 
2. Metering and billing system audits. In adopting rules pursuant to this section, 
the commission shall consider and may require periodic, independent audits of the 
metering and billing systems and the commission may determine that such audits are 
applicable to only residential and small commercial customers of an investor-owned 
transmission and distribution utility. If the commission requires periodic, independent 
audits of the metering and billing systems of an investor-owned transmission and 
distribution utility, the rules must contain at a minimum the following provisions: 
A. The method by which the commission will choose an independent auditor; 
B. The allocation of costs of a periodic metering and billing systems audit: and 
C. The statistical analysis to be used in an audit. 
Rules adopted pursuant to this section are major substantive rules as defined in Title 
5, chapter 3 7 5, subchapter 2-A. 
Sec. 3. Report. The Public Utilities Commission shall submit a report to the joint 
standing committee of the Legislature having jurisdiction over energy and utilities 
matters by February 1, 2019 that addresses the following issues: 
1. Whether investor-owned transmission and distribution utilities are doing enough 
to protect and strengthen their systems, especially with what appears to be an increase in 
high-intensity storm events; 
2. Whether it is in the ratepayers
interest to require investor-owned transmission and 
distribution utilities to do more to strengthen and protect their systems against damage in 
order to prevent and decrease the number and duration of power outages; and 
3. With respect to utility operations, what can be done to improve public safety 
during storm events and what lessons have been learned from recent outages due to storm 
events. 
In addressing subsection 3, the commission shall consult with the Department of 
Defense, Veterans and Emergency Management, Maine Emergency Management Agency 
and review what other states are doing to improve emergency planning and preparedness. 
The joint standing committee of the Legislature having jurisdiction over energy and 
utilities matters may report out a bill to the First Regular Session of the 129th Legislature 
relating to the matters addressed by the report. 
Sec. 4. Audit determinations. In making determinations regarding metering and 
billing systems audits in accordance with the Maine Revised Statutes, Title 35-A, section 
8 
3104-A, subsection 2, the Public Utilities Commission shall consider information learned 
from the audit of Central Maine Power Company1s customer billing system initiated in 
Public Utilities Commission, Docket No. 2018-00052. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 628, L.D. 1729 
Sec. 5. Rules. The Public Utilities Commission shall provisionally amend or adopt 
rules by January 11, 2019 in accordance with the Maine Revised Statutes, Title 35-A, 
section 3104-A.
SUMMARY 
This amendment, which is the majority report of the committee, strikes the bill and 
replaces it with the following. 
1. It allows the Public Utilities Commission to fairly allocate the costs between 
ratepayers and shareholders of an investor-owned public utility when an audit of an 
investor-owned public utility contributes to a commission finding of imprudence that 
results in a cost disallowance. 
2. 
It directs the Public Utilities Commission to adopt major substantive rules 
regarding the testing of a transmission and distribution utility1s metering and billing 
systems by a transmission and distribution utility. 
3. It directs the Public Utilities Commission to consider whether the rules include 
provisions related to periodic, independent audits of an investor-owned transmission and 
distribution utility's metering and billing systems. 
4. It requires the Public Utilities Commission to submit a report to the Legislature 
that addresses whether enough is being done by investor-owned transmission and 
distribution utilities to strengthen and protect their systems, whether it is in the ratepayers1 
interest to require the utilities to do more to strengthen and protect their systems, and 
what can be done to improve public safety in storm events, especially in light of lessons 
learned from recent storms. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/10/18 feac 
LD 1729 
LR 2706(02) 
An Act Regarding Compensation by Large Transmission and Distribution Utilities 
Fiscal Note for Bill as Amended by Committee Amendmeni fr" (S ·4(; 7) 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
Any additional costs to the Public Utilities Commission as a result of changes to the rules regarding the cost allocation 
of an audit of an investor-owned utility, the testing of a transmission and distribution utility's metering and billing 
systems and the frequency of independent audits of an investor-owned transmission and distribution utility's testing 
and billing systems are anticipated to be minor and can be absorbed within existing budgeted resources. 
LR2706(02) - Fiscal Note - Page 1 of 1