An Act To Allow Municipal Utility Expansion under Certain Conditions
Maine Legislature, Session 130, LD 0695
Committee: Energy, Utilities and Technology
Sponsors: BERRY
Amends: 35-A MRSA §2102, 35-A MRSA §3903, 35-A MRSA §3904

Legislative Document
No. 695
H.P. 507
House of Representatives, March 4, 2021
An Act To Allow Municipal Utility Expansion under Certain 
Conditions
Received by the Clerk of the House on March 2, 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 BERRY of Bowdoinham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §2102, sub-§1, as amended by PL 2011, c. 623, Pt. A, §17, is 
further amended to read:
1.  Approval required.  Except as provided in subsection 2 and in section 4507, a 
public utility may not furnish any of the services set out in section 2101 in or to any 
municipality in or to which another public utility is furnishing or is authorized to furnish a 
similar service without the approval of the commission.  For a municipal power district 
created under chapter 39, commission approval required under this subsection is limited to 
a commission determination that the procedures prescribed in chapter 39 for the creation 
of a municipal power district have been complied with and that there is no proven net harm 
to other ratepayers associated with the loss of customers by the transmission and 
distribution utility that will result from the commission's approval of the district under this 
subsection.  The commission may condition approval upon the submission of a bond or 
other financial security if the commission determines that such a requirement is necessary 
to ensure that a public utility has the financial ability to meet its obligations under this Title.
Sec. 2.  35-A MRSA §3903, sub-§4, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read:
4.  Favorable vote.  If a majority of the legal votes cast on this question favor 
incorporation, a municipal power district may be created for that municipality under this 
chapter upon declaration of the vote by the municipal officers, provided that the total 
number of votes cast for and against the incorporation equals or exceeds 40% of the total 
votes cast in that municipality for all candidates for Governor at the previous gubernatorial 
election.  If not, the proposed district is not created at that time.  Upon certification of a 
favorable vote by the municipal officers, the commission shall approve formation of the 
district if the commission finds that formation would be in conformance with the 
requirements of this Title chapter.  Upon approval by the commission, the district is created 
and the commission shall file certification of that approval with the Secretary of State.
Sec. 3.  35-A MRSA §3903, sub-§5 is enacted to read:
5.  Transfer of property; payment of just compensation.  When a municipal power 
district is created under this section and approved by the commission under this section and 
section 2102, the transmission and distribution utility furnishing service in that 
municipality must conform to that municipal decision and facilitate the transfer of property. 
The municipal power district shall pay the transmission and distribution utility just 
compensation, as determined by the commission, for the property of the transmission and 
distribution utility.
Sec. 4.  35-A MRSA §3904, sub-§4, as enacted by PL 1987, c. 141, Pt. A, §6, is 
amended to read:
4.  Favorable vote.  If, in each municipality, a majority of the legal votes cast on this 
question favor incorporation, a municipal power district may be created for those 
municipalities under this chapter upon declaration of the vote of the municipal officers, 
provided that the total number of votes cast in each municipality for and against the 
incorporation equals or exceeds 40% of the total votes cast in the municipality for all 
candidates for Governor at the previous gubernatorial election.  Upon certification of a 
favorable vote by the municipal officers, the commission shall approve formation of the 
district if the commission finds that formation would be in conformance with the 
requirements of this Title chapter.  Upon approval by the commission, the district is created 
and the commission shall file certification of that approval with the Secretary of State.
Sec. 5.  35-A MRSA §3904, sub-§5 is enacted to read:
5.  Transfer of property; payment of just compensation.  When a municipal power 
district is created under this section and approved by the commission under this section and 
section 2102, the transmission and distribution utility furnishing service in those 
municipalities must conform to those municipal decisions and facilitate the transfer of 
property.  The municipal power district shall pay the transmission and distribution utility 
just compensation, as determined by the commission, for the property of the transmission 
and distribution utility.
SUMMARY
This bill limits the approval by the Public Utilities Commission of a municipal power 
district's proposal to furnish service in a municipality or municipalities in which another 
utility is already furnishing service to the commission's determination that there is no 
proven net harm to other ratepayers associated with the loss of customers by the 
transmission and distribution utility and that the municipal power district was created in 
conformance with the Maine Revised Statutes, Title 35-A, chapter 39, which includes a 
favorable municipal vote to create the district.
It specifies that the transmission and distribution utility furnishing service in the 
municipality or municipalities where a municipal power district is created and approved by 
the commission must facilitate the transfer of property and be provided just compensation, 
as determined by the commission, for that property.