An Act To Allow a Municipality To Choose Its Power Provider (AFTER DEADLINE)
Maine Legislature, Session 129, LD 1542
Committee: Energy, Utilities and Technology
Sponsors: DENK
Amends: 35-A MRSA §2102

Legislative Document
No. 1542
H.P. 1125
House of Representatives, April 11, 2019
An Act To Allow a Municipality To Choose Its Power Provider
(AFTER DEADLINE)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205.
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative DENK of Kennebunk.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §2102, sub-§5 is enacted to read:
5.  Vote required.  If 2 transmission and distribution utilities furnish service within a 
municipality, that municipality may hold a municipal referendum to choose one of them 
to furnish service to the entire municipality.
A.  The decision to hold a referendum under this subsection must be made by a 
majority vote of the municipal officials.  The referendum must take place during a 
gubernatorial or presidential election in November.  The referendum must be called, 
advertised and conducted according to the law relating to municipal elections.  The 
municipal clerk shall prepare the required ballots, which must contain substantially 
the following question:
"Do you favor [insert transmission and distribution utility name] 
furnishing service to the entire area of [insert name of municipality]?"
B.  If the voters choose a transmission and distribution utility to furnish service to the 
entire municipality, the municipal officers shall petition the commission to approve 
that utility to provide service in the areas of the municipality served by the 2nd 
transmission and distribution utility.  The commission shall approve the petition if it 
finds the following:
(1)  The chosen transmission and distribution utility is willing to furnish service 
to the entire municipality;
(2)  The chosen transmission and distribution utility has the financial ability to 
meet its obligations under this Title; and
(3)  The chosen transmission and distribution utility is willing and able to pay a 
fair and reasonable price, as determined by the commission, for the assets of the 
2nd utility used to serve the municipality.
If the commission approves the petition, it shall, pursuant to section 1101, order the 
2nd utility to sell its assets used to the serve the municipality to the chosen 
transmission and distribution utility.
The commission may adopt rules to implement this subsection.  Rules adopted to 
implement this subsection are routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A.
SUMMARY
This bill provides a process to allow a municipality to choose a single transmission 
and distribution utility via a referendum when that municipality is served by more than 
one utility.  The decision to hold a referendum must be made by a majority vote of the 
municipal officials.  A referendum to choose a single utility must occur during a 
gubernatorial or presidential election in November and must be called, advertised and 
conducted according to the law relating to municipal elections.
The bill also requires the choice of a single utility to be approved by the Public 
Utilities Commission.  The commission is required to approve the choice if the 
commission finds that the chosen utility is willing to furnish service to the entire 
municipality, has the financial ability to meet its obligations under the Maine Revised 
Statutes, Title 35-A and is willing and able to pay a fair and reasonable price, as 
determined by the commission, for the assets of the 2nd utility needed to furnish service 
to the entire municipality.  Upon approval, the commission is directed to order the 2nd 
utility to sell its assets used to serve the municipality to the chosen transmission and 
distribution utility.  This bill also allows the commission to adopt routine technical rules 
to implement these provisions.