An Act To Clarify the Authority of an Affiliate of a Utility To Own Power Generation outside of the Utility's Territory
Maine Legislature, Session 128, LD 0756
Committee Amendment CA_A_H314 (House)
Amends: 35-A MRSA §3204

COMMITTEE AMENDMENT "A" to H.P. 536, L.D. 756, Bill, "An Act To 
Clarify the Authority of an Affiliate of a Utility To Own Power Generation outside of the 
Utility's Territory" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and insetting the following: 
'Sec. 1. 35-A MRSA §3204, sub-§11 is enacted to read: 
11. Affiliated generation outside service territorv oermitted. Notwithstanding 
subsection 5. an affiliate of an investor-owned transmission and distribution utility may 
own generation or generation-related assets in accordance with standards of conduct 
adopted under this subsection as long as the generation or generation-related assets are 
not directly interconnected to the facilities owned or operated by that investor-owned 
transmission and distribution utility. The commission shall establish. by rule. standards of 
conduct governing the relationships permitted under this section between an investor-
owned transmission and distribution utility and an affiliate of the investor-owned 
transmission and distribution utility that owns generation or generation-related assets that: 
A. Prohibit a transmission and distribution utility from taking any action that favors 
such an affiliate or adversely affects a competitor of such an affiliate in a manner that 
is unjust or unreasonable; 
B. Ensure the separation and. independence of such affiliates; and 
C. Protect ratepayers. 
For purposes of this subsection. 
11affiliate
means a person who has any direct or indirect 
ownership interest in, or is a direct or indirect subsidiary of a person who has any 
ownership interest in. the investor-owned transmission and distribution utility. but does 
not include a wholly owned or pattially owned direct or indirect subsidiary of the 
investor-owned transmission and distribution utility. 
Rules adopted pursuant to this subsection are major substantive rules as defined in Title 
5, chapter 375. subchapter 2-A. 
COMMITTEE AMENDMENT 
?. t~ s. 
COMMITIEE AMENDMENT ·A» to H.P. 536, L.D. 756 
Sec. 2. Existing affiliate. Prior to the adoption of rules by the Public Utilities 
Commission as required by the Maine Revised Statutes, Title 35-A, section 3204, 
subsection 11, an affiliate, as defined in section 3204, subsection 11, of an investor-
owned transmission and distribution utility that owns generation or generation-related 
assets that are not directly interconnected to the facilities owned or operated by that 
investor-owned transmission and distribution utility may continue to own those 
generation or generation-related assets and upon adoption of those rules is subject to the 
standards of conduct adopted by the commission.' 
SUMMARY 
This amendment replaces the bill. It allows an affiliate of an investor-owned 
transmission and distribution utility to own generation or generation-related assets in 
accordance with standards of conduct adopted by the Public Utilities Commission, unless 
the generation or generation-related assets are directly interconnected to the facilities 
owned or operated by that investor-owned transmission and distribution utility. It directs 
the Public Utilities Commission to adopt major substantive rules that establish standards 
of conduct governing the relationship between an investor-owned transmission and 
distribution utility and an affiliate that ensure the separation and independence of the 
affiliate and protects ratepayers. 
The amendment allows an affiliate of an investor-owned transmission and 
distribution utility that owns generation or generation-related assets that are not directly 
interconnected to the facilities owned or operated by that investor-owned transmission or 
distribution utility to continue to own those generation or generation-related assets. Upon 
adoption of rules by the Public Utilities Commission, the affiliate is subject to the 
standards of conduct adopted by the commission. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/21/17 feac 
LD 756 
LR 1259(02) 
An Act To Clarify the Authority of an Affiliate of a Utility To Own Power Generation outside of the 
Fiscal Detail and Notes 
Utility's Territory 
,\ 
Fiscal Note for Bill as Amended by Committee Amendment 'A' CH"' 3/ Lf) 
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 develop standards of conduct governing the relationship 
between an investor-owned transmission and distribution utility and a generation affiliate are anticipated to be minor 
and can be absorbed within budgeted resources. 
LR1259(02) - Fiscal Note - Page 1 of 1