An Act To Allow Microgrids That Are in the Public Interest
Maine Legislature, Session 129, LD 0013
Committee: Energy, Utilities and Technology
Sponsors: DEVIN
Amends: 35-A MRSA §2305-B

Legislative Document
No. 13
H.P. 14
House of Representatives, January 2, 2019
An Act To Allow Microgrids That Are in the Public Interest
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative DEVIN of Newcastle.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §2305-B, sub-§§1 and 2, as enacted by PL 2001, c. 110, 
§2, are amended to read:
1.  Transmission and distribution utilities; microgrids.  A transmission and 
distribution utility or a person that constructs, maintains or operates a new microgrid 
approved in accordance with section 3351, subsection 3 may construct and maintain its 
lines in, upon, along, over, across or under the roads and streets in any municipality in 
which it is authorized to supply electricity, subject to the conditions and restrictions 
provided in this chapter and chapter 25.
2.  Persons other than transmission and distribution utilities or persons that 
construct, maintain or operate a new microgrid.  A person other than a transmission 
and distribution utility or person that constructs, maintains or operates a new microgrid 
approved in accordance with section 3351, subsection 3 may not construct or maintain 
electric lines, including poles or other related structures, in, upon, along, over, across or 
under a road, street or other public way unless:
A.  The person satisfies the requirements of section 2503;
B.  The person or the person's contractor hired to construct the line provides to the 
applicable licensing authority a performance bond:
(1)  In the amount of the value of the line, including poles or other related 
structures, to be located in the public way; and
(2)  That is enforceable for one year from the date the line is energized;
C.  Prior to constructing the line, the person notifies the transmission and distribution 
utility in whose service territory the line is proposed to be built of the proposed 
location of the line; and
D.  If a public utility objects to the line on the basis that it may constitute a 
duplication of existing transmission or distribution facilities or may interfere with the 
adequate and safe delivery of electricity to others, the commission issues a finding 
that the line is not a duplication of existing transmission or distribution facilities and 
does not interfere with the adequate and safe delivery of electricity to others.  A 
finding is not required under this paragraph unless a public utility has objected in 
writing to the applicable licensing authority.
Sec. 2.  35-A MRSA c. 33-A is enacted to read:
CHAPTER 33-A
MICROGRIDS
§3351.  Microgrids
1.  Definitions.  As used in this chapter, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Distributed energy resources" means small-scale electrical generation sources 
located close to where the generated electricity is used.
B.  "New microgrid" means a group of interconnected loads and distributed energy 
resources within clearly defined electrical boundaries that acts as a single controllable 
entity with respect to the electric grid and can connect and disconnect from the 
electric grid to enable the new microgrid to operate in both electric grid-connected 
mode and nongrid-connected mode, also referred to as island mode, and that is 
constructed after October 1, 2019.
2.  Microgrids, public utility exception.   Notwithstanding section 2102 or any other 
provision of this Title, a person that constructs, maintains or operates a new microgrid 
approved under subsection 3 does not, as a result of furnishing service through that new 
microgrid to participating consumers, become a public utility and is not subject to 
regulation as a public utility under this Title.
3.  Commission approval.  The commission shall approve a petition to construct and 
operate a new microgrid if the commission finds that operation of the new microgrid is in 
the public interest and the new microgrid meets at least the following requirements:
A.  The proposed new microgrid will serve a total load of no more than 10 
megawatts;
B.  The distributed energy resources for the new microgrid meet the portfolio 
requirements in section 3210, subsections 3 and 3-A;
C.  The person proposing the new microgrid demonstrates that the person has the 
financial capacity to operate the proposed new microgrid;
D.  The person proposing the new microgrid demonstrates the technical capability to 
operate the proposed new microgrid;
E.  There is a relationship between the proposed new microgrid operator and 
consumers within the area to be served by the proposed new microgrid;
F.  The person proposing, owning or operating the new microgrid is not an investor-
owned transmission and distribution utility, an affiliate of an investor-owned 
transmission and distribution utility or an affiliated interest of an investor-owned 
transmission and distribution utility; and
G.  The proposed new microgrid will not negatively affect the reliability and security 
of the electrical system.
For the purposes of this subsection, when determining whether a proposed new microgrid 
is in the public interest, the commission may consider possible ratepayer effects, whether 
positive or negative, benefits due to the increased resilience or reliability of the electric 
grid, economic development benefits or any other factors the commission considers 
necessary to promote the public interest.
In granting its approval, the commission shall impose such terms, conditions or 
requirements on the construction, maintenance or operation of the new microgrid as, in its 
judgment, it considers necessary.
4.  Participant; grid protections.  A new microgrid approved in accordance with 
subsection 3 is subject to commission oversight to ensure reliability and security of the 
electrical system and consumer protections for new microgrid consumers.
Sec. 3.  Report.  The Public Utilities Commission shall submit a report by January 
15, 2021 to the joint standing committee of the Legislature having jurisdiction over 
energy and utility matters detailing its activities related to new microgrids as defined in 
the Maine Revised Statutes, Title 35-A, section 3351, subsection 1, paragraph B, 
including whether any new microgrids have been approved under Title 35-A, section 
3351.  The report must also include any recommendations for legislation that may be 
necessary to clarify or enhance the law regarding new microgrids.  The committee may 
report out a bill to the First Regular Session of the 130th Legislature based on the report.
SUMMARY
This bill directs the Public Utilities Commission to approve a petition to construct 
and operate a new microgrid if the commission finds the proposal to be in the public 
interest and the new microgrid meets other specified requirements.  It provides the 
commission with the ability to impose such terms, conditions or requirements as, in its 
judgment, it considers necessary in approving a new microgrid and also gives the 
commission oversight to ensure reliability and security of the electrical system and 
consumer protections for new microgrid consumers.  It specifies that a new microgrid 
does not become a public utility as a result of its furnishing electrical service to 
participating consumers.  It provides that a new microgrid that has been approved by the 
commission may construct, maintain or operate its lines in, upon, along, over, across or 
under the roads and streets.  The bill directs the Public Utilities Commission to submit a 
report to the joint standing committee of the Legislature having jurisdiction over energy 
and utility matters by January 15, 2021.