An Act To Finance Distribution Investments at the Lowest Cost to Customers and To Encourage Utility Performance
Maine Legislature, Session 130, LD 1511
Committee Amendment CA_A_H976 (House)
Amends: 35-A MRSA §3131, 35-A MRSA §3132-E, 5 MRSA §12021, 5 MRSA §12025, 35-A MRSA §113

COMMITTEE AMENDJ\1ENT "A" to H.P. 1119, L.D. 1511, "An Act To Finance 
Distribution Investments at the Lowest Cost to Customers and To Encourage Utility 
Performance" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
1PARTA 
Sec. A-1. 35-A MRSA §3131, sub-§1, as amended by PL 1999, c. 398, Pt. A, §45 
and affected by §§104 and 105, is further amended to read: 
1. Domestic transmission and distribution utility. "Domestic transmission and 
distribution utility" means any entity organized under the laws of this State to transmit or 
distribute electricity, except for a tax-exempt 3rd-party entity under section 3132-E. 
Sec. A-2. 35-A MRSA §3131, sub-§4-E is enacted to read: 
4-E. Tax-exempt 3rd-party entity. "Tax-exempt 3rd-party entity" means a tax-
exempt entity capable of financing and owning facilities used or useful for the transmission 
and delivery of electricity, other than a domestic transmission and distribution utility. 
Sec. A-3. 35-A MRSA §3132-E is enacted to read: 
§3132-E. Tax-exempt 3rd-party entity 
1. Tax-exempt 3rd-party entity. The commission shall establish and administer a 
process to approve a tax-exempt 3rd-party entity to finance and own a distribution project 
that is subject to investigation by the nonwires alternative coordinator under section 
3132-B, subsection 2. The commission shall approve a tax-exempt 3rd-party entity to 
finance and own a distribution project under this subsection if: 
A. Prior to the issuance of recommendations for nonwires alternatives under section 
3132-B, subsection 4, the tax-exempt 3rd-party entity submits a request to the 
commission for the opportunity to submit a proposal to finance and own the 
COMMITTEE AMENDMENT 
ROS 
COMMITTEE AMENDMENT" A, to H.P. 1119, L.D. 1511 
distribution project if a nonwires alternative is not determined to be appropriate and 
the commission grants the request; 
B. The result of the nonwires alternatives investigation for any petition received is the 
determination by the commission that a nonwires alternative to the distribution project 
is not appropriate; 
C. The tax-exempt 3rd-party entity submits a proposal to the commission to finance 
and own the distribution project within 90 days of the determination under paragraph 
B: and 
D. The commission determines that it is in the interest of ratepayers to approve the 
proposal submitted under paragraph C. 
2. Operations. Upon a finding by the commission that a distribution project should 
be owned by a tax-exempt 3rd-party entity, the utility that initially proposed the distribution 
project shall facilitate the project's planning, development, 3rd-party financing and 
completion, shall promptly and collaboratively negotiate reasonable terms and conditions 
with the tax-exempt 3rd-party entity and shall operate and maintain the project. 
3. Rate design. The commission shall approve a rate design for a distribution project 
approved under subsection 1 that minimizes the cost to ratepayers, compensates the tax-
exempt 3rd-party entity in accordance with the proposal approved under subsection 1 and 
compensates the utility an amount based upon the utility's performance in planning, 
development, operation and maintenance of the project and service to ratepayers in the 
project's service area. A rate design under this subsection must provide for a payment in 
lieu of taxes to a municipality, county or other political subdivision in the same amount as 
the taxes that would have been paid if a domestic transmission and distribution utility 
owned the distribution project. 
4. Rules. The commission shall adopt rules to carry out the purposes of this section. 
Rules adopted under this subsection are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A. 
Sec. A-4. Appropriations and allocations. The following appropriations and 
allocations are made. 
PUBLIC UTILITIES COMMISSION 
Public Utilities - Administrative Division 0184 
Initiative: Provides one-time funding for contracted services and related STA-CAP 
expenses. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
Public Utilities - Administrative Division 0184 
2021-22 
$0 
$0 
2022-23 
$200,000 
$200,000 
Initiative: Provides funding for one Staff Attorney position, 2 Utility Analyst positions and 
associated position costs. 
OTHER SPECIAL REVENUE FUNDS 
POSITIONS - LEGISLATIVE COUNT 
2021-22 
0.000 
COMMITTEE AMENDMENT 
2022-23 
2.000 
ROS 
COMMITTEE AMENDMENT" A" to H.P. 1119, L.D. 1511 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOT AL 
PUBLIC UTILITIES COMMISSION 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
PARTB 
$0 
$0 
$0 
2021-22 
$0 
$0 
Sec. B-1. 5 MRSA §12021, sub-§6, ~-1 is enacted to read: 
$435,936 
$26,991 
$462,927 
2022-23 
$662,927 
$662,927 
D-1. An investor-owned public utility under Title 35-A, section 113, subsection 6; 
Sec. B-2. 5 MRSA §12025 is enacted to read: 
§12025. Exception for investor-owned public utility 
Notwithstanding any provision of this subchapter to the contrary, an investor-owned 
public utility under Title 35-A, section 113, subsection 6 is not subject to any of the 
requirements of this subchapter except for section 12022, subsection 3. 
Sec. B-3. 35-A MRSA §113, sub-§6 is enacted to read: 
6. Investor-owned utility selection of vendors. An investor-owned public utility 
shall, no later than November 1, 2022, comply with the requirements of Title 5, section 
12022, subsection 3 to ensure that the utility secures the best value in its procurements. For 
the pm:poses of this subsection, "investor-owned public utility" means a public utility that 
operates as a for-profit corporation owned by shareholders and is not wholly owned by its 
customers. The commission by rule may define when competitive procurement by an 
investor-owned utility under Title 5, section 12022, subsection 3 may be waived, including 
when the utility is responding to emergencies or in other situations in which the commission 
determines competitive procurement is impractical. Rules adopted under this subsection 
are routine technical rules as defmed in Title 5, chapter 375, subchapter 2-A. 
Sec. B-4. Public Utilities Commission; report. The Public Utilities Commission 
shall review laws and rules within its authority for requirements applicable to public 
utilities that are substantially similar to the requirements for a governing body of an entity 
under the Maine Revised Statutes, Title 5, section 12022, other than subsection 3 of that 
section. By January 1, 2023, the commission shall provide the joint standing committee of 
the Legislature having jurisdiction over energy and utility matters with a report that 
7 
includes the following: 
8 
1. Identification of the laws and rules applicable to public utilities that the commission 
finds to be substantially similar to Title 5, section 12022; and 
2. Consideration of the feasibility ofrequiring investor-owned utilities to comply with 
the requirements of Title 5, section 12022, if those requirements are not otherwise 
established by laws and rules that are substantially similar. 
COMMITTEE AMENDMENT 
ROS 
COJ\1MITTEEAMENDMENT"A "toH.P.1119, L.D.1511 
After reviewing the report, the joint standing committee may report out related 
legislation to the 131 st Legislature in 2023.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment replaces the bill, which is a concept draft. 
Part A directs the Public Utilities Commission to allow a tax-exempt 3rd-party entity 
other than a domestic transmission and distribution utility to finance and own an electric 
distribution project and directs that the rate design for the project minimize the cost to 
ratepayers and compensate the tax-exempt 3rd-party entity an amount based upon the 
entity's performance in planning, development, operation and maintenance of the project 
and service to ratepayers in the project's service area. The rate design must provide for a 
payment in lieu of taxes to a municipality, county or other political subdivision in the same 
amount as the taxes that would have been paid if a domestic transmission and distribution 
utility owned the distribution project. Part A includes an appropriations and allocations 
section. 
Part B provides that investor-owned public utilities are reporting entities for the 
purpose of the Maine Revised Statutes, Title 5, section 12022, subsection 3. It also 
provides that an investor-owned utility must comply with the competitive procurement 
requirements of that subsection by November 1, 2022. It authorizes the Public Utilities 
Commission to exempt by rule investor-owned utilities from the competitive procurement 
requirement with respect to procurements that are needed in responding to emergencies 
such as storm damage or other situations in which the commission determines competitive 
procurement is impractical. Part B also directs the commission to review the laws and rules 
within its regulatory authority for laws and rules that impose requirements on public 
utilities substantially similar to those contained in Title 5, section 12022, other than 
subsection 3. After completing its review, the commission is required to provide a report 
to the joint standing committee of the Legislature havingjurisdiction over energy and utility 
matters. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/05/22 feac:.. 
LD 1511 
LR 1880(02) 
An Act To Finance Distribution Investments at the Lowest Cost to Customers and To Encourage 
Utility Performance 
Fiscal Note for Bill as Amended by Committee Amendment 1\" ( H -CJ 7(Q) 
Committee: Energy, Utilities and Technology 
Appropriations/ Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2021-22 
FY2022-23 
$0 
$662,927 
$0 
$662,927 
Projections 
FY2023-24 
$481,575 
$481,575 
Projections 
FY2024-25 
$504,304 
$504,304 
This bill directs the Public Utilities Commission (PUC) to allow a tax-exempt 3rd-party entity other than a 
transmission and distribution utility to finance and own electric distribution projects, provided that the rate design for 
the project meets certain criteria. The bill defines investor-owned utilities as reporting entities and requires them to 
follow the same financial reporting and procurement procedures as quasi-independent state entities. Beginning in 
fiscal year 2022-23, the bill provides ongoing allocations to the PUC of $462,927 for one Staff Attorney position, two 
Utility Analyst positions and associated costs and $200,000 for contracted services. The PUC is funded by an 
assessment set to produce sufficient revenue for the expenditures allocated by the Legislature for operating the PUC. 
The increased allocations in this bill require a corresponding increase in revenue from the assessment on transmission 
and distribution utilities. 
LR1880(02) - Fiscal Note - Page 1 of 1