An Act To Allow Microgrids That Are in the Public Interest
Maine Legislature, Session 130, LD 1053
Committee: Energy, Utilities and Technology
Sponsors: GROHOSKI
Amends: 35-A MRSA §2305-B

Legislative Document
No. 1053
H.P. 782
House of Representatives, March 11, 2021
An Act To Allow Microgrids That Are in the Public Interest
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative GROHOSKI of Ellsworth.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §2305-B, sub-§1, as enacted by PL 2001, c. 110, §2, is 
amended to read:
1.  Transmission and distribution utilities; microgrids.  A transmission and 
distribution utility or a person that constructs, maintains or operates a new microgrid 
approved in accordance with section 3351, subsection 3 may construct and maintain its 
lines in, upon, along, over, across or under the roads and streets in any municipality in 
which it is authorized to supply electricity, subject to the conditions and restrictions 
provided in this chapter and chapter 25.
Sec. 2.  35-A MRSA §2305-B, sub-§2, as enacted by PL 2001, c. 110, §2, is 
amended to read:
2.  Persons other than transmission and distribution utilities or person that 
constructs, maintains or operates new microgrid.  A person other than a transmission 
and distribution utility or person that constructs, maintains or operates a new microgrid 
approved in accordance with section 3351, subsection 3 may not construct or maintain 
electric lines, including poles or other related structures, in, upon, along, over, across or 
under a road, street or other public way unless:
A.  The person satisfies the requirements of section 2503;
B.  The person or the person's contractor hired to construct the line provides to the 
applicable licensing authority a performance bond:
(1)  In the amount of the value of the line, including poles or other related 
structures, to be located in the public way; and
(2)  That is enforceable for one year from the date the line is energized;
C.  Prior to constructing the line, the person notifies the transmission and distribution 
utility in whose service territory the line is proposed to be built of the proposed location 
of the line; and
D.  If a public utility objects to the line on the basis that it may constitute a duplication 
of existing transmission or distribution facilities or may interfere with the adequate and 
safe delivery of electricity to others, the commission issues a finding that the line is not 
a duplication of existing transmission or distribution facilities and does not interfere 
with the adequate and safe delivery of electricity to others.  A finding is not required 
under this paragraph unless a public utility has objected in writing to the applicable 
licensing authority.
Sec. 3.  35-A MRSA c. 33-A is enacted to read:
CHAPTER 33-A
MICROGRIDS
§3351.  Microgrids
1.  Definitions.  As used in this chapter, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Distributed energy resources" means small-scale electrical generation sources 
located close to where the generated electricity is used, energy storage resources, 
energy efficiency resources or demand response resources.
B.  "New microgrid" means a group of interconnected loads and distributed energy 
resources within clearly defined electrical boundaries that acts as a single controllable 
entity with respect to the electric grid and can connect and disconnect from the electric 
grid to enable the new microgrid to operate in both electric grid-connected mode and 
nongrid-connected mode, referred to in this chapter as "island mode," and that is 
constructed after October 1, 2020.
2.  Microgrids, public utility exception.   Notwithstanding section 2102 or any other 
provision of this Title to the contrary, a person that constructs, maintains or operates a new 
microgrid approved under subsection 3 does not, solely as a result of furnishing service 
through that new microgrid to participating consumers, become a public utility and is not 
subject to regulation as a public utility under this Title.
3.  Commission approval; requirements.  A person may not construct or operate a 
new microgrid without commission approval in accordance with this subsection.
A.  The commission shall approve a petition to construct and operate a new microgrid 
if the commission finds that operation of the new microgrid is in the public interest and 
the new microgrid meets at least the following requirements:
(1)  The proposed new microgrid will serve a total load of no more than 25 
megawatts;
(2)  The proposed new microgrid is located in the service territory of a transmission 
and distribution utility with more than 50,000 customers;
(3)  The distributed energy resources for the new microgrid meet the applicable 
portfolio requirements in section 3210, subsections 3, 3-A, 3-B and 3-C;
(4)  The person proposing the new microgrid demonstrates that the person has 
secured the financial capacity to operate the proposed new microgrid;
(5)  The person proposing the new microgrid demonstrates that the person has 
secured the technical capability to operate the proposed new microgrid;
(6)  There is a contractual relationship between the proposed new microgrid 
operator and consumers within the area to be served by the proposed new 
microgrid; and
(7)  The proposed new microgrid will not negatively affect the reliability and 
security of the electric grid.
For the purposes of this paragraph, when determining whether a proposed new 
microgrid is in the public interest, the commission shall consider possible ratepayer 
effects, whether positive or negative; benefits due to the increased resilience or 
reliability of the electric grid; economic development benefits; and any other factors 
the commission considers necessary to promote the public interest.
B.  As a condition of approval of a new microgrid, the commission shall:
(1)  Require that any increase in costs to the electric transmission and distribution 
system in the State as a result of the new microgrid must be fully recovered from 
the microgrid owner and customers of the microgrid and not passed on to other 
electric ratepayers; and
(2)  Impose any other terms, conditions or requirements on the construction, 
maintenance or operation of the new microgrid as, in its judgment, it considers 
necessary, which may include but are not limited to parameters regarding the 
ability of the new microgrid to enter island mode, as defined by the commission 
by rule, and the operation of the new microgrid in grid-connected mode and island 
mode.
4.  Commission oversight; grid protections; consumer protections.  A new 
microgrid approved in accordance with subsection 3 is subject to commission oversight to 
ensure reliability and security of the electric grid and consumer protections for customers 
of the new microgrid.
5.  Services.  Services provided by a new microgrid may include, but are not limited 
to:
A.  Standby electric service, as defined by the commission by rule, when the new 
microgrid is operating in island mode; and
B.  Selling electricity as a competitive electricity provider when the new microgrid is 
operating in grid-connected mode.
6.  Rulemaking. The commission may adopt rules to implement this section. Rules 
adopted under this subsection are routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A.
Sec. 4.  Report.  The Public Utilities Commission shall submit a report by January 7, 
2022 to the joint standing committee of the Legislature having jurisdiction over energy and 
utility matters detailing its activities related to new microgrids as defined in the Maine 
Revised Statutes, Title 35-A, section 3351, subsection 1, paragraph B, including whether 
any new microgrids have been approved under Title 35-A, section 3351.  The report must 
also include any recommendations for legislation that may be necessary to clarify or 
enhance the law regarding new microgrids.  The committee may report out a bill to the 
Sec. 5.  Precedent established by Public Utilities Commission.  The provisions 
of this Act may not be interpreted to modify or nullify the analytical framework and 
precedent for analyzing whether an entity is a transmission and distribution utility or a 
competitive electricity provider established by the Public Utilities Commission in opinions 
and orders issued prior to the effective date of this Act, including, but not limited to, 
opinions and orders issued under Docket Number 2000-653, Request for Commission 
Investigation Regarding the Plans of Boralex Stratton Energy, Inc. to Provide Electric 
Service Directly from Stratton Lumber Company and Docket Number 2011-200, ReEnergy 
Rumford, LLC, Request for Advisory Ruling.
SUMMARY
This bill directs the Public Utilities Commission to approve a petition to construct and 
operate a new microgrid if the commission finds the proposal to be in the public interest 
and the new microgrid meets other specified requirements.  It provides the commission 
with the ability to impose such terms, conditions or requirements as, in its judgment, it 
considers necessary in approving a new microgrid and also gives the commission oversight 
to ensure reliability and security of the electrical grid and consumer protections for new 
microgrid consumers.  It specifies that a new microgrid does not become a public utility 
solely as a result of its furnishing electrical service to participating consumers.  The bill 
directs the Public Utilities Commission to submit a report to the joint standing committee 
of the Legislature having jurisdiction over energy and utility matters by January 7, 2022.