An Act Regarding Utility Reorganizations
Maine Legislature, Session 129, LD 1560
Committee: Energy, Utilities and Technology
Sponsors: LAWRENCE, WOODSOME, RILEY
Amends: 35-A MRSA §708

Legislative Document
No. 1560
S.P. 495
In Senate, April 16, 2019
An Act Regarding Utility Reorganizations
(EMERGENCY)
Submitted by the Office of the Public Advocate pursuant to Joint Rule 204.
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LAWRENCE of York.
Cosponsored by Senator: WOODSOME of York, Representative: RILEY of Jay.
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, this legislation needs to take effect before the expiration of the 90-day 
period because at least 2 proposals for utility reorganizations are imminent; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §708, sub-§1-A is enacted to read:
1-A.  Legislative findings.  The Legislature finds it is in the public interest to ensure 
that reorganization of a utility serves the interest of the utility's ratepayers.
Sec. 2.  35-A MRSA §708, sub-§2, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read:
2.  Reorganization subject to commission approval.  Reorganization shall be is 
subject to commission approval as follows.
A.  Unless exempted by rule or order of the commission, no a reorganization may not 
take place without the approval of the commission.  No A reorganization may not be 
approved by the commission unless it is established by the applicant for approval that 
the reorganization is consistent with the interests of provides net benefits to the 
utility's ratepayers and is consistent with the interests of the utility's investors.  The 
commission shall rule upon all requests for approval of a reorganization within 60 
days of the filing of the request for approval.  If it determines that the necessary 
investigation cannot be concluded within 60 days, the commission may extend the 
period for a further period of no more than 120 days.  In granting its approval, the 
commission shall impose such terms, conditions or requirements as, in its judgment, 
are necessary to protect the interests of ratepayers.  These conditions shall must 
include provisions which assure that ensure the following:
(1)  That the commission has reasonable access to books, records, documents and 
other information relating to the utility or any of its affiliates, except that the 
Public Utilities Commission may not have access to trade secrets unless it is 
essential to the protection of the interests of ratepayers or investors.  The 
commission shall afford trade secrets and other information such protection from 
public disclosure as is provided in the Maine Rules of Civil Procedure;
(2)  That the commission has all reasonable powers to detect, identify, review and 
approve or disapprove all transactions between affiliated interests;
(3)  That the utility's ability to attract capital on reasonable terms, including the 
maintenance of a reasonable capital structure, is not impaired;
(4)  That the ability of the utility to provide safe, reasonable and adequate service 
is not impaired;
(5)  That the utility continues to be subject to applicable laws, principles and 
rules governing the regulation of public utilities;
(6)  That the utility's credit is not impaired or adversely affected;
(7)  That reasonable limitations be imposed upon the total level of investment in 
nonutility business, except that the commission may not approve or disapprove of 
the nature of the nonutility business;
(8)  That the commission has reasonable remedial power including, but not 
limited to, the power, after notice to the utility and all affiliated entities of the 
issues to be determined and the opportunity for an adjudicatory proceeding, to 
order divestiture of or by the utility in the event that divestiture is necessary to 
protect the interest of the utility, ratepayers or investors.  A divestiture order shall 
must provide a reasonable period within which the divestiture shall must be 
completed; and
(9)  That ratepayers receive net benefits from the reorganization and that neither 
ratepayers nor investors are adversely affected by the reorganization.
B.  The commission may intervene on behalf of the State in any proceeding before 
any state or federal agency or court before which an application for approval of 
reorganization is pending.  The commission may enter into any binding settlement 
related to any proceeding in which the commission has intervened and may exercise 
any powers or rights provided by that settlement and may enforce these powers or 
rights.
C.  In determining whether a utility reorganization provides net benefits to the 
utility's ratepayers pursuant to paragraph A, the commission, at a minimum, shall 
examine:
(1)  Whether the reorganization will result in a rate increase for the utility's 
ratepayers; and
(2)  Whether the reorganization will result in a loss of local control of the utility's 
management and operations in a manner that limits the ability of local 
management to protect the interests of the utility's ratepayers in this State.
Sec. 3.  Application.  Notwithstanding the Maine Revised Statutes, Title 1, section 
302, this Act applies to actions and proceedings pending on the effective date of this Act.
Sec. 4.  Retroactivity.  This Act applies retroactively to March 27, 2019.
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved.
SUMMARY
This bill provides that a reorganization of a utility may not be approved by the Public 
Utilities Commission unless it is established by the applicant for approval that the 
reorganization provides net benefits to the utility's ratepayers and is consistent with the 
interests of the utility's investors.  In determining whether a utility reorganization 
provides net benefits to the utility's ratepayers, the commission at a minimum must 
examine whether the reorganization will result in a rate increase for the utility's 
ratepayers and whether the reorganization will result in a loss of local control of the 
utility's management and operations in a manner that limits the ability of local 
management to protect the interests of the utility's ratepayers in this State.