An Act To Restore Local Ownership and Control of Maine's Power Delivery Systems
Maine Legislature, Session 129, LD 1646
Committee: Energy, Utilities and Technology
Sponsors: BERRY, JACKSON, DOUDERA, GROHOSKI, HUBBELL, KESSLER, RYKERSON, LIBBY, MOORE, WOODSOME
Amends: 5 MRSA §12004-G, 35-A MRSA §3501, 35-A MRSA §4002

Legislative Document
No. 1646
H.P. 1181
House of Representatives, April 25, 2019
An Act To Restore Local Ownership and Control of Maine's Power 
Delivery Systems
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative BERRY of Bowdoinham.
Cosponsored by President JACKSON of Aroostook and
Representatives: DOUDERA of Camden, GROHOSKI of Ellsworth, HUBBELL of Bar 
Harbor, KESSLER of South Portland, RYKERSON of Kittery, Senators: LIBBY of 
Androscoggin, MOORE of Washington, WOODSOME of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §12004-G, sub-§36 is enacted to read:
36.  
Sec. 2.  35-A MRSA §3501, sub-§1, ¶¶D and E, as amended by PL 1999, c. 
398, Pt. A, §85 and affected by §§104 and 105, are further amended to read:
D.  The portion of any municipal or quasi-municipal entity providing transmission 
and distribution services; and
E.  Any transmission and distribution utility wholly owned by a municipality.; and
Sec. 3.  35-A MRSA §3501, sub-§1, ¶F is enacted to read:
F.  The Maine Power Delivery Authority established in chapter 40.
Sec. 4.  35-A MRSA c. 40 is enacted to read:
CHAPTER 40
MAINE POWER DELIVERY AUTHORITY
§4001.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Authority.  "Authority" means the Maine Power Delivery Authority established in 
section 4002.
2.  Board.  "Board" means the Maine Power Delivery Authority Board established in 
Title 5, section 12004-G, subsection 36.
3.  Cost of service.  "Cost of service" means the total amount that must be collected 
by the authority to recover its costs but does not include any return on capital investment 
unless a return is required as security for debt service.
4.  Customer-owner.  "Customer-owner" means a person to whom the authority 
provides electricity.
5.  Generating source.  "Generating source" means a machine or device that 
produces electric energy by any means.
Public Utilities
Maine Power 
Delivery Authority 
Board
Legislative Per 
Diem and Expenses
35-A MRSA §4002
6.  Previous franchisee.  "Previous franchisee" means an individual or entity having 
any title or interest in any property, rights, easements or interests authorized to be 
acquired by the authority under this chapter.
7.  Utility facility.  "Utility facility" means an item of plant used or useful in 
providing transmission and distribution utility service and includes, but is not limited to, 
transmission lines, office buildings, equipment and transportation equipment.
8.  Utility property.  "Utility property" means any tangible or intangible asset, 
liability, obligation, plan, proposal, share, agreement or interest of a utility; any facility in 
development or planning by the utility as of January 1, 2019; and, without limitation, the 
entire utility and any part or portion of the utility.
§4002.  Maine Power Delivery Authority established; board members
The Maine Power Delivery Authority is established to provide for its 
customer-owners in this State reliable electric transmission and distribution services at 
the lowest possible cost in accordance with this chapter.
1.  Governance; board.  The authority is created as a body corporate and politic and 
a public instrumentality of the State and is governed by the Maine Power Delivery 
Authority Board in accordance with this section.
The board is composed of 10 members, appointed by the Governor and confirmed by the 
Legislature, all of whom must be residents of the State.  One member must be a 
residential consumer of electricity, one member must be a representative of a commercial 
consumer of electricity and one member must be a representative of an industrial 
consumer of electricity.  No more than 5 of the members may be members of the same 
political party.  The Governor shall appoint members as follows:
A.  Five members residing in the service territory of the State that was served by the 
investor-owned transmission and distribution utility serving the largest number of 
customers in the State on January 1, 2000;
B.  Two members residing in the territory of the State that was served by the 
investor-owned transmission and distribution utility serving the 2nd largest number 
of customers in the State on January 1, 2000;
C.  One member residing in the territory of the State that was served by the investor-
owned transmission and distribution utility serving the 3rd largest number of 
customers in the State on January 1, 2000;
D.  One member chosen from a list of at least 2 proposed members provided by an 
organization representing the consumer-owned transmission and distribution utilities 
in the State, other than the authority, serving at least 1,000 customers each; and
E.  One member chosen from a list of at least 2 proposed members provided by the 
executive board of a bona fide labor organization or an association of employees 
representing at least 10% of the workforce employed by transmission and distribution 
utilities in the State.
2.  Term of office.  A member of the board serves for a term of 6 years except that 
members of the first board serve as follows, determined by lot by those members after 
their appointment: 4 members serve 6-year terms, 3 members serve 4-year terms and 3 
members serve 2-year terms.  A member serves until the end of the member's term or 
until the member's successor has been appointed, whichever is later.  If there is a vacancy 
in the board, it must be filled in the same manner described in subsection 1 and the person 
appointed to fill a vacancy serves for the unexpired term of the member whose vacancy 
the person is filling.  Members may be reappointed.
3.  Quorum and chair.  Six members of the board constitute a majority and a 
quorum.  The board shall elect from its members a chair and a vice-chair.  The vice-chair 
shall serve as acting chair in the absence of the chair.
4.  Voting.  All decisions of the board must be made by a majority vote of the board.
§4003.  Powers and duties
1.  Powers; generally.  The authority is a consumer-owned transmission and 
distribution utility and has all the powers and duties of a transmission and distribution 
utility under this Title, as affected by the provisions of chapter 35, within the service 
territories of the investor-owned transmission and distribution utilities whose utility 
facilities it acquires under this chapter.
2.  Limits on authority; generating property.  The authority may not own or 
operate a generating source or purchase electric capacity or energy from a generating 
source, except as the commission may approve in order to allow the authority to maintain 
or improve system reliability.
3.  Operations.  The authority shall contract by means of a competitive public 
solicitation the services of a qualified nongovernmental entity, referred to in this section 
as "the contractor," to provide operations and administrative services.
4.  Employees. The employees of the contractor retained to operate the authority's 
facilities are considered private employees, with all the rights and responsibilities of 
private employees. The contractor shall hire any person who was an employee of the 
investor-owned transmission and distribution utility at the time the authority acquired the 
investor-owned transmission and distribution utility who is a qualified, nonexempt 
employee subject to collective bargaining agreements of the acquired investor-owned 
transmission and distribution utility, to the extent of the contractor's need for personnel to 
provide sound operation, and shall retain these employees for a period of 5 years after 
first beginning operations. If otherwise qualified, any such employee may not be 
terminated as a result of the 5-year period expiring.  The contractor shall honor and 
maintain the terms of any collective bargaining agreements in effect at the time the 
authority acquired the investor-owned transmission and distribution utility for the 
remaining term of any collective bargaining agreement, except that, when 2 or more 
contracts exist, the employees' wages, salaries and benefits must be made reasonably 
equal to the higher of those provided in the contracts or must exceed those previously 
paid by the acquired investor-owned transmission and distribution utility.
Upon the conclusion of a contract pursuant to subsection 3, the authority, in soliciting for 
a new contract, shall give preference to service providers who agree to maintain or 
improve the terms of the collective bargaining agreement in existence on the conclusion 
of the prior contract.
5.  Acquisition of utility property.  Within one year of appointment of the first 
board, the authority shall purchase all utility facilities in the State owned or operated or 
held for future use by any investor-owned transmission and distribution utility, except 
that the board, by vote of at least 8 members, may extend the period by 12 months.  The 
board may also purchase or assume any other utility property should it determine such an 
acquisition to be in the interest of its customer-owners.  The board shall finance the 
purchase by issuing debt in accordance with chapter 9.
A.  The authority shall pay to the previous franchisee the net book value of the utility 
facilities and any utility property, as reported in the most recent report prior to the 
effective date of this chapter by the investor-owned transmission and distribution 
utility to the commission or to the Federal Energy Regulatory Commission, unless the 
authority and the previous franchisee mutually agree on a different purchase amount.
B.  A final decision of the authority to offer a price for utility facilities and any utility 
property may be appealed by a previous franchisee to the Law Court in the same 
manner as an appeal taken from a judgment of the Superior Court in a civil action.
C.  If a final purchase of any utility facilities and any utility property has not been 
accomplished within one year of the appointment of the first board, or within 12 
months after that date if the board extends the date in accordance with this 
subsection, the authority may take the utility facilities and any utility property by 
eminent domain in the same manner and under the same conditions as set forth in 
chapter 65.
6.  Regional transmission.  The service territories of the authority initially remain in 
the transmission system to which they belonged on the effective date of this chapter until 
changed by majority vote of the board.
7.  Name.  The authority may adopt an alternative or abbreviated name for business 
purposes.
8.  Consumer-owned transmission and distribution utilities; application.  This 
subsection controls the treatment of consumer-owned transmission and distribution 
utilities and the application of law to the authority.
A.  This chapter may not be construed to affect the powers, authorities or 
responsibilities of any consumer-owned transmission and distribution utility existing 
on the effective date of this chapter or created after that date.  The authority may not 
oppose the extension of the service territory of a consumer-owned transmission and 
distribution utility existing prior to the effective date of this chapter to include the 
entirety of a municipality in which the consumer-owned transmission and distribution 
utility provides electric service as long as the authority is reasonably compensated for 
the assets and appurtenances required.
B.  Notwithstanding any other provision of this chapter to the contrary, the authority 
is subject to section 3104; section 3210-C, subsections 3, 7 and 11; sections 3212 and 
3212-A; and section 3214, subsection 2-A.
§4004.  Rates
The rates and all other charges of the authority must be sufficient to pay in full the 
cost of service, including the cost of debt and any payments in lieu of taxation.  No debt 
or liability of the authority is a debt or liability of the State or any agency or 
instrumentality of the State other than the authority, and neither the State nor any agency 
or instrumentality of the State other than the authority guarantees any debt or liability of 
the authority.
§4005.  Tax-exempt; payments in lieu of taxes
1.  Tax exemptions.  The authority is a public municipal corporation within the 
meaning and for the purposes of Title 36, section 651, and the property of the authority is 
exempt from taxation to the extent provided in that section.  Notwithstanding any other 
provision of law, income of the authority, as a public instrumentality, is exempt from all 
taxation or assessment by the State or any political subdivision of the State.
All bonds, notes and other evidences of indebtedness issued by the authority in 
accordance with chapter 9 are legal obligations of the authority, and the authority is a 
quasi-municipal corporation within the meaning and for the purposes of Title 30-A, 
section 5701.  All bonds, notes and other evidences of indebtedness issued by the 
authority are legal investments for savings banks in this State and are exempt from state 
income tax.
2.  Payments in lieu of taxes.  Rates charged by the authority must include sufficient 
amounts to allow the authority to make payments in lieu of taxes in accordance with this 
subsection.  The authority, to the extent its revenues exceed current expenditures and any 
necessary reserves in any fiscal year, shall make payments in lieu of taxes with respect to 
its utility facilities or property to any municipality, county or other political subdivision to 
which an investor-owned transmission and distribution utility whose utility facilities the 
authority acquired pursuant to this chapter paid taxes and in the same amount as those 
taxes would have been if the investor-owned transmission and distribution utility 
continued to own the property or utility facilities.  If the authority owns and manages a 
service territory formerly franchised to an investor-owned transmission and distribution 
utility for at least one month during fiscal year 2019-20 or fiscal year 2020-21, for each 
such month, the authority also shall make timely payment in lieu of taxes to the State in 
the amount of 1/12 of the most recent, full-year taxes paid to the State by the investor-
owned transmission and distribution utility.  Such payment to the State must be reduced 
by any amount paid in lieu of taxes pursuant to this subsection.
§4006.  Governmental function
The authority, as a public instrumentality, performs a governmental function in the 
carrying out of the provisions of this chapter, but no debt or liability of the authority may 
be considered a debt or liability of the State.
§4007.  Termination of the authority
The authority may not be dissolved or cease operations except by authorization of 
law and only if all debt and liabilities of the authority have been paid or a sufficient 
amount for the payment of all debt and liabilities has been placed in an irrevocable trust 
for the benefit of the holders of the debt.
§4008.  Accountability, transparency and reporting
The authority is subject to the same standards of governmental review and freedom of 
access as the Public Utilities Commission.  By April 15th of each year, the authority shall 
submit a report to the joint standing committee of the Legislature having jurisdiction over  
utilities matters summarizing present and future activities and the performance of the 
authority in meeting its obligations to its ratepayers and employees.
Sec. 5.  Review of laws and report.  The Public Utilities Commission shall 
examine all laws that may be affected by this Act or need to be changed as a result of this 
Act, including laws governing the Maine Power Delivery Authority and laws relating to 
investor-owned transmission and distribution utilities that may be eliminated as a result of 
this Act.  The commission shall determine any modifications to laws that may be 
necessary or appropriate as a result of this Act or to effectuate the purposes of this Act 
and shall submit proposed legislation to the Joint Standing Committee on Energy, 
Utilities and Technology no later than January 15, 2020.  The Joint Standing Committee 
on Energy, Utilities and Technology may report out a bill relating to the subject matter of 
this Act to the Second Regular Session of the 129th Legislature.
SUMMARY
This bill creates the Maine Power Delivery Authority as a consumer-owned utility to 
acquire and operate all transmission and distribution systems in the State currently 
operated by the investor-owned transmission and distribution utilities known as Central 
Maine Power Company and Emera Maine.