An Act To Improve Efficiency through Electric Rate Design and Advanced Technology
Maine Legislature, Session 128, LD 1896
Committee Amendment CA_A_S465 (Senate)
Amends: 35-A MRSA §3152, 35-A MRSA §3153-A, 35-A MRSA §3154, 35-A MRSA §3209, 35-A MRSA §10110

COMMITTEE AMENDMENT "A " to S.P. 726, L.D. 1896, Bill, "An Act To 
Improve Efficiency through Electric Rate Design and Advanced Technology" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Create an Electric Rate Design To Lower Maine's Energy Costs and 
Carbon Dioxide Emissions' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
1Sec. 1. 35-A MRSA §3152, sub-§1, as amended by PL 2013, c. 369, Pt. F, §§2 
to 4, is further amended to read: 
1. Increased efficiency. The Legislature declares and finds that improvements in 
transmission and distribution utility rate design and related regulatory programs have 
great potential for reducing the cost of electric utility services to consumers, for 
encouraging energy conservation and efficient use of existing facilities and for 
minimizing the need for expensive new electric transmission capacity. It is the purpose 
of this chapter to: 
A. Require the commission to relate transmission and distribution rates more closely 
to the costs of providing transmission and distribution service, including 
consideration of fixed customer charges to the extent practicable and economically 
efficient; 
C. 
Require the commission to consider the ability of low-income residential 
customers to pay in full for electric services as transmission and distribution rates are 
redesigned consistent with these policies; and 
D. Require the commission to set rates, including transmission and distribution rates 
that vary by time of day and season and by other relevant cost drivers, to the extent 
practicable to achieve economic efficiency. 
Sec. 2. 35-A MRSA §3153-A, sub-§1, as corrected by RR 2009, c. 2, §103, is 
amended to read: 
COMMITTEE AMENDMENT 
CO:MMITTEEAMENDMENT" A" to S.P. 726, L.D. 1896 
1. 
Proposals and programs developed. 
The commission, as it detetnlffies 
appropriate, shall may order investor-owned transmission and distribution utilities to 
develop and submit specific rate design proposals and related programs for implementing 
energy conservation and energy efficiency techniques and innovations, either in 
oonjunetion ,.vith or independent of any rate making proceeding pending before the 
comm1ss1on. 
The proposals, as the commission determines, must be designed to 
encourage energy conservation, mlnlmize the need for nev,r transmlssion and distribution 
capacity, minim1:t1e costs of transmlssion and distribution service to consumers improve 
equity among customers, minimize transmission and distribution rates over the long term 
or short term and take into account the needs of low-income customers. In appr01Aag a 
proposal UR<ier this section, the commission shall give equivalent consideration to the 
goals of minimfaing costs and m.inimfaing transmission and distribution rates to 
consumers. Proposals must include, but are not limited to, proposals that provide for the 
development and implementation of: 
A. 
Load management techniques; 
B. Rates that reflect marginal costs of services at different voltages, times of day er .. 
seasons of the year or other relevant cost drivers, including short-run and long-run 
marginal costs associated with the construction of new transmission and distribution 
facilities; 
D. 
Rates or other regulatory policies that encourage maintain transmission and 
distribution utility system reliability; 
E. 
Transmission and distribution utility financing or subsidization of capital 
improvements undertaken by ratepayers to conserv:e optimize electricity used usage 
by the ratepayers in the future. This paragraph applies to future programs for utility 
financing of energy conservation or load management as long as the goal of such 
programs is to economically defer or eliminate the need for transmission and 
distribution plant upgrades. In addition to programs undertaken pursuant to this 
paragraph, programs may be undertaken pursuant to section 10110 to achieve goals 
other than that identified in this paragraph; 
F. As defined by the commission by rule, cost effective conversions of electric space 
heat systems to systems relying on other fuels and other techniques for enabling 
homeowners and tenants to reolace on oea:k. winter oeriod electric usa~e with less 
eKpensp1e sources of heat; 
G. Rates or bill payment assistance programs for residential customers who have 
been certified eligible for state or federal fuel assistance that take into account the 
difficulty these customers have paying in full for electric service or that target 
assistance to these customers in the most efficient manner, taking into account the 
necessity of maintaining electric service; and 
H. 
Rates or programs that allow encourage incremental use or maintenance of 
existing use when those rates uses serve to minjmjze rate levels for all transmission 
and distribution customers. In approving any proposal for rates or programs that 
allow encourage incremental use or maintenance of existing use, the commission 
shall seek to ensure that rates for all customer classes will be lower than they would 
have been had the commission not approved the proposal. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"~" to S.P. 726, L.D. 1896 
Sec. 3. 35-A MRSA §3154, sub-§1, as amended by PL 1999, c. 398, Pt. A, §59 
and affected by §§104 and 105, is further amended to read: 
1. Rate design and conservation improvements. The commission shall mandate, 
after notice and hearing on the proposed schedule, a scheduled phasing-in of the 
improvements in transmission and distribution utility rate design and related regulatory 
programs submitted and approved under section 3153-A and is authorized to order 
utilities to implement transmission and distribution utility rate design improvements 
approved by the commission on a temporary, pilot and ~erimental aasis, affecting 
either a portion or all of any class of consumers of any utility as the commission may 
determine is appropriate to carry out the purposes of this subchapter, and order other 
energy conservation techniques, programs and innovations relating to transmission and 
distribution utility service that, in the commission's judgment, are practicable, just and 
reasonably related to fulfilling the purposes of this chapter. In ordering any rate design 
improvements or any other programs for implementing energy eonservation efficiency 
techniques and innovations referred to in section 3153-A, the commission shall consider 
rate design stability and shall ensure the revenue requirements of the utility. 
Sec. 4. 35-A MRSA §3209, sub-§5 is enacted to read: 
5. Supply rates. To the extent cost effective and practicable, the commission shall 
implement policies and practices to encourage competitive electricity providers to offer 
residential and commercial customers electricity supply pricing reflective of real-time 
market price variations. 
Sec. 5. 35-A MRSA §10110, sub-§10, as amended by PL 2013, c. 369, Pt. A, 
§24, is further amended to read: 
10. Funds held in trust. All funds collected from electricity consumers pursuant to 
this section are collected under the authority and for the purposes of this section and are 
deemed to be held in trust for the purposes of benefiting electricity consumers. In the 
event funds are not expended or contracted for expenditure within 2 years of being 
collected from consumers, the commission shall ensure that the value of those funds is 
returned to consumers, except that funds targeted for low-income residential transmission 
and distribution consumers pursuant to subsection 2, paragraph B, subparagraph (1) that 
are not expended or contracted for expenditure within 2 years must be returned to low-
income residential transmission and distribution consumers. 
Sec. 6. Rate design proposals. Notwithstanding the Maine Revised Statutes, 
Title 35-A, section 3153-A, subsection 1, the Public Utilities Commission shall order 
investor-owned transmission and distribution utilities to develop and submit specific rate 
design proposals and programs for implementing energy efficiency techniques and 
innovations in accordance with section 3153-A by January 1, 2019. 
Sec. 7. 
Stakeholder group 
to 
evaluate options 
and prepare 
recommendations. The Office of the Public Advocate shall convene a stakeholder 
group to discuss and frame for legislative consideration options and recommendations for 
the efficient and effective functioning of a single, independent smart grid coordinator. 
The group shall, at a minimum, address issues raised in the order dated December 15, 
2017 and the examiners' report issued in the Public Utilities Commission's proceeding 
Docket No. 2016-00049 including, but not limited to: 
COMMITTEE AMENDMENT 
COMMITTEEAMENDJ:vfENT"A" to S.P. 726, L.D. 1896 
1. The qualifications an entity should possess in order to qualify as a smart grid 
coordinator and the criteria the Public Utilities Commission should use in selecting a 
smart grid coordinator; 
2. 
The approach to be employed regarding costs and incentives related to 
implementing the provisions of the Maine Revised Statutes, Title 35-A, section 3143 and 
considering nonwires alternatives in proposals made pursuant to Title 35-A, sections 
3132 and 3132-A, including: 
A. Addressing financial disincentives for transmission and distribution utilities to 
promote smart grid functions, including recovering the costs of contracted nonwires 
alternatives and the limitations, if any, on utilities owning generation assets as 
nonwires alternatives under Title 35-A, section 3204, subsection 6; and 
B. 
The financial incentives appropriate for the smart grid coordinator and how 
operating costs of the smart grid coordinator should be recovered; 
3. The roles of the Office of the Public Advocate, the Public Utilities Commission, 
the Efficiency Maine Trust, as established in Title 5, section 12004-G, subsection 10-C, 
and transmission and distribution utilities in meeting the goals of Title 35-A, section 3143 
while: 
A. Ensuring independence in the analysis, procurement and dispatch of nonwires 
alternatives; and 
B. Minimizing redundancy in the functions of these parties and in the uses of 
systems and operations that are paid for by ratepayers; 
4. 
The specific process to ensure the efficient, timely review and approval of 
traditional transmission and distribution projects and nonwires alternatives and the 
process and approach to be employed in order for the Public Utilities Commission to 
retain the appropriate authority over the procurement and operation of nonwires 
alternatives and utility investment decisions; and 
5. The additional legislative authority or directives needed to ensure the efficient and 
effective establishment of any smart grid coordinator, promotion of the goals under Title 
35-A, section 3143 and development ofnonwires alternatives to achieve grid reliability at 
the lowest cost to ratepayers. 
The stakeholder group must be open to all interested parties. Reasonable costs to 
facilitate the group must be determined by the Office of the Public Advocate and may be 
paid from revenues received pursuant to Title 35-A, section 10109 by the Efficiency 
Maine Trust. 
The Office of the Public Advocate shall submit by February 1, 2019 a report that 
summarizes the discussions and recommendations from the stakeholder group to the joint 
7 
standing committee of the Legislature having jurisdiction over energy and utility matters. 
The committee may report out a bill based on the recommendations in the report to the 
Sec. 8. Public Utilities Commission consideration of rate proposals. Until 
days after adjournment of the First Regular Session of the 129th Legislature, the 
Public Utilities Commission may not implement any final decisions related to any rate 
proposals received from any transmission and distribution utility pursuant to the 
COMMITTEE AMENDMENT 
CO:M1vf.ITTEEAMENDMENT" A" to S.P. 726, L.D. 1896 
commission's order of December 15, 2017, in the Public Utilities Commission's Docket 
No. 2016-00049, that puts wires and nonwires solutions on equal footing for rate-making 
incentive purposes. 
Sec. 9. Stakeholder group to consider expanding Efficiency Maine Trust 
expenditures of electricity conservation funds. The Public Utilities Commission 
shall convene a stakeholder group to discuss and frame for legislative consideration 
options and recommendations related to the possibility of expanding the Maine Revised 
Statutes, Title 35-A, section 10110 to allow the Efficiency Maine Trust to use funds for 
electricity conservation programs for low-income residential consumers to promote the 
placement of high-efficiency ductless heat pumps into qualified low-income homes by 
allowing the trust in its cost-effectiveness test to account for all energy savings derived 
from a high-efficiency ductless heat pump, including nonelectric savings. 
The stakeholder group must be open to all interested parties. 
The Public Utilities Commission shall submit by February 1, 2019 a report that 
summarizes the discussions and recommendations from the stakeholder group to the joint 
standing committee of the Legislature having jurisdiction over energy and utility matters. 
The committee may report out a bill based on the recommendations in the report to the 
SUMMARY 
This amendment, which is the minority report of the committee and replaces the bill, 
specifies that the purposes of the law regarding rate design are to require the Public 
Utilities Commission to consider fixed customer charges, to the extent practicable and 
economically efficient, and to set transmission and distribution rates that vary by time of 
day and season or other relevant cost drivers, to the extent practicable, to achieve 
economic efficiency. Like the bill, the amendment does the following: 
1. It requires investor-owned transmission and distribution utilities to submit specific 
rate design proposals to the commission by January 1, 2019; 
2. It removes the requirement that transmission and distribution utilities' proposals 
include cost-effective conversions of electric space heat systems; 
3. It removes the requirement that rate design changes implemented pursuant to the 
Maine Revised Statutes, Title 35-A, section 3153-A be implemented on a temporary, · 
pilot or experimental basis and requires the commission to implement policies and 
practices to encourage competitive electricity providers to offer residential and 
commercial customers supply prices reflective of real-time market price variations; 
and 
4. It provides that Efficiency Maine Trust :funds targeted to low-income residential 
transmission and distribution consumers that are uncommitted 2 years after having 
been collected must be returned to those consumers. 
The amendment also directs the Office of the Public Advocate to convene a 
stakeholder group to evaluate options and prepare recommendations for certain issues 
related to the efficient and effective implementation of smart grid policy, including 
2 
addressing costs and financial incentives of transmission and distribution utilities and the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 726, L.D. 1896 
smart grid coordinator and describing roles for the Public Advocate, Public Utilities 
Commission, Efficiency Maine Trust and transmission and distribution utilities with 
regard to nonwires alternatives and other smart grid functions. It also prohibits the Public 
Utilities Commission from implementing any final decisions related to rate proposals 
received pursuant to the commission's order of December 15, 2017 in the Public Utilities 
Commission's Docket No. 2016-00049 from any transmission and distribution utility until 
days after adjournment of the First Regular Session of the 129th Legislature. 
Lastly, it requires the Public Utilities Commission to convene a stakeholder group to 
discuss allowing the Efficiency Maine Trust to use funds for electricity conservation 
programs for low-income residential consumers to promote the placement of high-
efficiency ductless heat pumps into qualified low-income homes by allowing the trust in 
its cost-effectiveness test to account for all energy savings derived from a high-efficiency 
ductless heat pump, including nonelectric savings. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/12/18 feac::.. 
LD 1896 
LR 2966(02) 
An Act To Improve Efficiency through Electric Rate Design and Advanced Technology 
Fiscal Note for Bill as Amended by Committee Amendment ''f; ( S- YV!i) 
Committee: Energy, Utilities and Technology 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium revenue decrease - Efficiency Maine Trust 
Minor cost increase - Other Special Revenue Funds 
Provisions that require the Efficiency Maine Trust (EMT) to return any unused assessments collected from electricity 
consumers that were for programs targeted for low-income residential transmission and distribution customers that 
were not expended or contracted for expenditure within 2 years of the date the assessment was collected would reduce 
funding available for the EMT to conduct conservation programs. Any additional costs to the Public Utilities 
Commission (PUC) as a result of the rate design sections of this bill are anticipated to be minor and can be absorbed 
within existing budgeted resources. Any additional costs to the PUC, the Office of the Public Advocate and the EMT 
as a result of the stakeholder process are anticipated to be minor and can be absorbed within existing budgeted 
resources. 
LR2966(02) - Fiscal Note - Page 1 of 1