An Act Regarding the Solicitation of Contracts for Distributed Resources That Use Renewable Energy
Maine Legislature, Session 130, LD 1435
Committee: Energy, Utilities and Technology
Sponsors: FOSTER
Amends: 35-A MRSA §3210-F, 35-A MRSA §3210-H

Legislative Document
No. 1435
H.P. 1051
House of Representatives, April 12, 2021
An Act Regarding the Solicitation of Contracts for Distributed 
Resources That Use Renewable Energy
Received by the Clerk of the House on April 8, 2021.  Referred to the Committee on 
Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative FOSTER of Dexter.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3210-F, sub-§1, ¶B, as enacted by PL 2013, c. 454, §2, is 
amended to read:
B.  "Long-term energy contract" means a contract with an investor-owned transmission 
and distribution utility entered into under section 3210‑C, 3210-H or section 3604.
Sec. 2.  35-A MRSA §3210-H is enacted to read:
§3210-H.  Long-term contracts
The commission shall direct investor-owned transmission and distribution utilities to 
enter into contracts for distributed resources pursuant to this section.  For purposes of this 
section, "distributed resource" means an electric generating facility that uses a renewable 
fuel or technology under section 3210, subsection 2, paragraph B-3, regardless of the 
facility's power production capacity, and is located in the service territory of a transmission 
and distribution utility in the State.
1.  Solicitations.  By January 1, 2025, the commission shall select at least 2 competitive 
solicitations timed to coordinate with other procurements undertaken by the commission. 
Following a review of the bids received, the commission may negotiate with one or more 
potential suppliers of distributed resources.  If only one bid is offered, the commission shall 
ensure that the negotiation with the bidder is based on a full project cost disclosure by the 
potential supplier.  The commissioner shall negotiate a contract of up to 100 megawatts in 
capacity that is commercially reasonable and commits all parties to commercially 
reasonable behavior.  The commission may direct an investor-owned transmission and 
distribution utility to enter into a contract of up to 375 megawatts if the aggregate of 
projected costs of all contracts entered into under this section does not exceed the 
commission's most recent best estimate of the aggregate of costs of long-term contracts 
under section 3210-G.  If the pricing of one or more competitive bids is equivalent, the 
commission shall give preference to a project that:
A.  Supports the rural economy of the State;
B.  Offers a solution to the needs of the electric grid; or
C.  Includes a program to assist low-income residents of the State to obtain the benefits 
of renewable energy.
2.  Disposition of resources.  As directed by the commission pursuant to this section, 
an investor-owned transmission and distribution utility shall sell distributed resource 
capacity or energy purchased or take other action relative to distributed resource capacity 
or energy.
3.  Cost and benefit recovery.  The commission shall ensure that all costs and direct 
financial benefits associated with a contract entered into under this section are allocated to 
ratepayers in accordance with section 3210-F.  An amount charged to a ratepayer must 
reflect any price differential that exists at any time during the term of the contract between 
the contract price and the prevailing market price at which the distributed resource is sold 
and any other differences from gains or losses derived from a contract.
Sec. 3.  35-A MRSA c. 34-C, as amended, is repealed.
SUMMARY
This bill repeals provisions of law regarding distributed generation of electricity and 
directs the Public Utilities Commission by January 1, 2025 to solicit bids from suppliers of 
distributed resources of renewable fuel or technology regardless of power production 
capacity to enter into contracts with transmission and distribution utilities in whose service 
territory the suppliers are located.  The Public Utility Commission is required to ensure that 
all costs and direct financial benefits associated with a contract are allocated to ratepayers 
and that the amount charged to a ratepayer reflects any price differential that exists at any 
time during the term of the contract between the contract price and the prevailing market 
price at which the distributed resource is sold and any other gains or losses derived from 
the contract.