An Act To Protect Consumers from Price Gouging by Utility Companies
Maine Legislature, Session 129, LD 1120
Committee: Energy, Utilities and Technology
Sponsors: CHENETTE, SYLVESTER, MIRAMANT, ACKLEY, BAILEY, RYKERSON
Amends: 2 MRSA §6-A, 35-A MRSA §105, 35-A MRSA §108-B, 35-A MRSA §301, 35-A MRSA §302, 35-A MRSA §1701, 35-A MRSA §3195

Legislative Document
No. 1120
S.P. 340
In Senate, March 7, 2019
An Act To Protect Consumers from Price Gouging by Utility 
Companies
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator CHENETTE of York.
Cosponsored by Representative SYLVESTER of Portland and
Senator: MIRAMANT of Knox, Representatives: ACKLEY of Monmouth, BAILEY of Saco, 
RYKERSON of Kittery.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  2 MRSA §6-A, as amended by PL 2015, c. 8, §1, is further amended to 
read:
§6-A.  Salaries of commissioners and certain employees of the Public Utilities 
Commission
The salaries of the commissioners and certain employees of the Public Utilities 
Commission shall be are as follows.
1.  Chair; members.  The salary of the chair and other members of the commission 
is equal to the salary of the Chief Justice of the Superior Court as established pursuant to 
Title 4, section 4, subsection 2-A and section 102, subsection 1 the state average annual 
wage adjusted for inflation as determined by the Department of Administrative and 
Financial Services based on United States Department of Labor, Bureau of Labor 
Statistics data.
2.  Commission members.  The salary of members of the commission is equal to the 
salary of an Associate Justice of the Superior Court as established pursuant to Title 4, 
section 102, subsections 2 and 2-A.
3.  Other employees.  The salaries of the following employees are within salary 
range 53: 
A.    General counsel;
B.  Director of telephone and water utility industries;
C.    Administrative Director;
D.  Director of electric and gas utility industries; and
E.  Director of consumer assistance and safety.
3-A.  Other employees; range 35.  The salaries of the following employees are 
within salary range 35:
A.    Assistant administrative director.
5.  Retirement contribution.  The State shall pay the mandatory retirement 
contribution required by Title 5, section 17701, for commissioners who elect to become 
members of the Maine Public Employees Retirement System.  Payment shall must be 
made as provided in Title 5, section 17702.  A commissioner may elect at the time of 
appointment to receive a 5% salary increase instead of state payment of the retirement 
contribution. 
Membership in the Maine Public Employees Retirement System is optional.
Sec. 2.  35-A MRSA §105, as enacted by PL 1987, c. 141, Pt. A, §6, is amended to 
read:
§105.  Appointment
1.  Appointment.  The Governor shall appoint 3 members to the Public Utilities 
Commission.  The appointments shall be are subject to review by the joint standing 
committee of the Legislature having jurisdiction over public utilities matters and to 
confirmation by the Legislature.  Members of the commission shall devote full time to 
their duties.  The commissioners serve at the pleasure of the Governor.
2.  Term.  The commissioners shall serve for terms of 6 years. 
A.  Each term shall end on March 31st of the 6th year of the term. The terms shall be 
staggered so that one ends in 1987 and every 6 years thereafter, one ends in 1989 and 
every 6 years thereafter, and one ends in 1991 and every 6 years thereafter.
B.  A commissioner may continue to serve beyond the end of this term until a 
successor is appointed and qualified.
C.  Any vacancy occurring in the commission shall be filled by appointment for the 
unexpired portion of the term.
Sec. 3.  35-A MRSA §108-B, sub-§3, as enacted by PL 2013, c. 554, §1, is 
amended to read:
3.  Compensation.  In the event of a temporary appointment under this section, the 
commission shall provide administrative support to the temporary commissioner and 
compensate the temporary commissioner for the hours spent at the commission working 
on a proceeding at an hourly rate that is computed by dividing the annual salary of a 
commissioner, established in Title 2, section 6-A, subsection 2 1, by 2,080 hours.
Sec. 4.  35-A MRSA §301, sub-§4, as amended by PL 1993, c. 506, §1, is further 
amended to read:
4.  Determining rates.  In determining just and reasonable rates, the commission: 
A.    Shall provide such revenues to the utility as may be required to perform its 
public service and to attract necessary capital on just and reasonable terms; and
B.    Shall, to a level within the commission's discretion, consider whether the utility 
is operating as efficiently as possible and is utilizing sound management practices, 
including the treatment in rates of executive compensation.; and
C.  Shall limit rate increases to less than 10% in any 12-month period.
Sec. 5.  35-A MRSA §302, as enacted by PL 1987, c. 141, Pt. A, §6, is amended to 
read:
§302.  Limitations on rates
The following expenses, whether paid directly or indirectly, through reimbursement 
or otherwise, incurred by a public utility shall may not be included or incorporated in 
operating expenses:
1.  Contributions to political groups or candidates.  Contributions or gifts to 
political candidates, political parties, political or legislative committees or any committee 
or organization working to influence referendum petitions or elections.; and
2.  Costs associated with errors or mistakes.  Costs associated with errors or 
mistakes incurred by a public utility when the utility is determined by the commission to 
be responsible for the error or mistake by the utility's own admission or after commission 
investigation.
Sec. 6.  35-A MRSA §1701, sub-§1-A, as enacted by PL 2009, c. 399, §2, is 
amended to read:
1-A.  Appointment of the Public Advocate; removal.  This subsection governs the 
appointment, term of service and removal of the Public Advocate.
A.  The Governor shall appoint the Public Advocate, subject to review by the joint 
standing committee of the Legislature having jurisdiction over public utilities matters 
and to confirmation by the Legislature.  The Public Advocate serves at the pleasure of 
the Governor.
B.  The Public Advocate shall serve for a 4-year term of office, beginning on 
February 1, 2013 and every 4 years thereafter.
C.  The Public Advocate may continue to serve beyond the end of the 4-year term 
until a successor is appointed and qualified.
D.  Any vacancy occurring must be filled by appointment for the unexpired portion of 
the term.
E.  Any willful violation of this chapter by the Public Advocate constitutes sufficient 
cause for removal of the Public Advocate by the Governor, on the address of both 
branches of the Legislature or by impeachment pursuant to the Constitution of Maine, 
Article IX, Section 5.
Sec. 7.  35-A MRSA §3195, sub-§2, as amended by PL 2003, c. 45, §1, is further 
amended to read:
2.  Just and reasonable rates.  In determining the reasonableness of any rate-
adjustment mechanism established under this subchapter, the commission shall apply the 
standards of section 301 to ensure that the rates resulting from the implementation of the 
mechanism are just and reasonable and subject to the limitations of section 302.  Prior to 
the adoption of a new or replacement alternative rate plan or renewal of any existing 
alternative rate plan, the commission shall, in order to ensure that rates at the starting 
point of the plan are just and reasonable, conduct a revenue requirement and earnings 
review pursuant to the standards of section 301.  In conducting such a review under this 
subsection, the commission, at its discretion, may conduct the review in a manner 
designed to minimize the cost of the review to ratepayers.
SUMMARY
This bill changes the positions of the members of the Public Utilities Commission, 
currently 6-year terms, and the Public Advocate, currently a 4-year term, to positions 
serving at the pleasure of the Governor.  It also changes the compensation of the members 
of the Public Utilities Commission to be set at the average annual wage in the State; 
current law sets compensation of the chair of the commission at the salary of the Chief 
Justice of the Superior Court and the other commissioners at the salary of an Associate 
Justice of the Superior Court.
The bill requires the commission, in the determination of utility rates, to limit rate 
increases to less than 10% in any 12-month period.  The bill also prohibits costs 
associated with errors or mistakes that are the responsibility of a utility from being 
included or incorporated in operating expenses in the commission's determination of rates 
or rate-adjustment mechanisms.