An Act To Extend Arrearage Management Program Requirements for Transmission and Distribution Utilities for One Year
Maine Legislature, Session 129, LD 2013
Committee: Energy, Utilities and Technology
Sponsors: RILEY
Amends: 35-A MRSA §3214, 35-A MRSA §10110

Legislative Document
No. 2013
H.P. 1434
House of Representatives, January 14, 2020
An Act To Extend Arrearage Management Program Requirements 
for Transmission and Distribution Utilities for One Year
Submitted by the Office of the Public Advocate pursuant to Joint Rule 203.
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative RILEY of Jay.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3214, sub-§2-A, as amended by PL 2017, c. 414, §1, is 
further amended to read:
2-A.  Arrearage management program.  Each investor-owned transmission and 
distribution utility shall implement pursuant to this subsection an arrearage management 
program to assist eligible low-income residential customers who are in arrears on their 
electricity bills.  An arrearage management program implemented pursuant to this 
subsection is a plan under which a transmission and distribution utility works with an 
eligible low-income residential customer to establish an affordable payment plan and 
provide credit to that customer toward the customer's accumulated arrears as long as that 
customer remains in compliance with the terms of the program.  If a consumer-owned 
transmission and distribution utility elects to implement an arrearage management 
program, it must do so in accordance with this subsection and rules adopted pursuant to 
this subsection.  The commission shall establish requirements relating to the arrearage 
management programs by rule.  Rules adopted pursuant to this subsection are routine 
technical rules pursuant to Title 5, chapter 375, subchapter 2-A.
In adopting rules regarding arrearage management programs, the commission shall:
A.  Consider best practices as developed and implemented in other states or regions;
B.  Require that an arrearage management program include an electricity usage 
assessment at no cost to the participant;
D.  Ensure that a transmission and distribution utility develops terms and conditions 
for its arrearage management program in a manner that is consistent with the 
program's objectives and is in the best interests of all ratepayers; and
E.  Ensure that a transmission and distribution utility recovers in rates all reasonable 
costs of arrearage management programs, including:
(1)  Incremental costs;
(2)  Reconnection fees;
(3)  Administrative costs;
(4)  Marketing costs;
(5)  Costs for any 3rd-party assistance it receives in administering its arrearage 
management program; and
(6)  Costs for providing financial and budgetary guidance to participants whether 
provided directly or through a 3rd party contracted by the transmission and 
distribution utility to provide that guidance.
The amount of any arrearage forgiven that is treated as bad debt for purposes of cost 
recovery by the transmission and distribution utility may not be included as a 
reasonable cost under this paragraph.
The Efficiency Maine Trust shall work with investor-owned transmission and distribution 
utilities, consumer-owned transmission and distribution utilities that elect to participate in 
an arrearage management program and other stakeholders to provide access to a 
complementary low-income energy efficiency program for participants in arrearage 
management programs in order to help reduce participants' energy consumption.
No later than January 28, 2021 2022, the commission shall prepare a report assessing the 
effectiveness of arrearage management programs, including the number of participants 
enrolled in the programs, the number of participants completing the programs, the 
number of participants who have failed to complete the programs, the payment patterns of 
participating customers after completing the programs, the dollar amount of arrears 
forgiven, a comparison of outcomes for those participating in the programs and those not 
participating, the impact on any participating transmission and distribution utility's bad 
debt as a result of the programs, the costs and benefits to all ratepayers associated with 
the programs and recommendations for ways in which the programs might be improved 
or continued for the benefit of all ratepayers.  In preparing its report, the commission 
shall hold at least one formal stakeholder meeting involving affected parties, including 
the Office of the Public Advocate and the participating transmission and distribution 
utilities.  Parties must also be provided an opportunity to submit written comments to the 
commission regarding the performance of the programs.
The joint standing committee of the Legislature having jurisdiction over utilities matters 
may report out a bill relating to the commission report to the First Second Regular 
Session of the 130th Legislature.
This subsection is repealed September 30, 2021 2022.
Sec. 2.  35-A MRSA §10110, sub-§2, ¶L, as amended by PL 2017, c. 414, §2, is 
further amended to read:
L.  Pursuant to section 3214, subsection 2-A, the trust shall work with investor-
owned transmission and distribution utilities, consumer-owned transmission and 
distribution utilities that elect to participate in an arrearage management program 
pursuant to section 3214, subsection 2-A and other stakeholders to provide access to 
a complementary low-income energy efficiency program for participants in the 
arrearage management programs in order to help reduce participants' energy 
consumption.
This paragraph is repealed September 30, 2021 2022.
SUMMARY
This bill delays by one year, from September 30, 2021 to September 30, 2022, the 
repeal of the requirement that an investor-owned transmission and distribution utility 
implement an arrearage management program to assist low-income residential customers 
with their electricity bills and the requirement that the Efficiency Maine Trust work with 
utilities that participate in an arrearage management program.