An Act to Protect Northern Maine Standard-offer Ratepayers
Maine Legislature, Session 131, LD 1727
Committee: Energy, Utilities and Technology
Sponsors: STEWART, HARRINGTON, ARDELL, FOSTER, THERIAULT
Amends: 35-A MRSA §3212

Legislative Document
No. 1727
S.P. 691
In Senate, April 20, 2023
An Act to Protect Northern Maine Standard-offer Ratepayers
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator STEWART of Aroostook.
Cosponsored by Senator: HARRINGTON of York, Representatives: ARDELL of Monticello, 
FOSTER of Dexter, THERIAULT of Fort Kent.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3212, sub-§2, ¶E is enacted to read:
E.  The commission shall structure and administer the bid process for standard-offer 
service in an area administered by the independent system administrator for northern 
Maine within the service territory of an investor-owned transmission and distribution 
utility in a manner that ensures stable standard-offer service rates for all classes of 
customers.  The commission shall administer at least 2 bid solicitations for such 
standard-offer service between June and October of each year.  The commission shall 
also administer a process for requesting nonbinding prospective price proposals for 
standard-offer service in future years in order to provide indications of price trends and 
shall disseminate the results to customers for informational purposes.
Sec. 2.  Pilot program.  The Public Utilities Commission shall by rule establish a 
pilot program to develop and test innovative methods to achieve the purposes of the Maine 
Revised Statues, Title 35-A, section 3212, subsection 2, paragraph E.  In developing and 
implementing the pilot program, the commission shall examine whether the purposes of 
Title 35-A, section 3212, subsection 2, paragraph E and lower standard-offer service rates 
may be achieved by assigning appropriate portions of any Class IA resources contracted 
under Title 35-A, section 3210-G to one or more of the standard-offer service providers in 
a manner that passes the contract prices through to standard-offer service customers.  
Notwithstanding Title 35-A, section 3212, subsection 2, paragraph E, for purposes of the 
pilot program, the commission may by rule and appropriate orders assign portions of any 
Class IA resources contracted under Title 35-A, section 3210-G to one or more of the 
standard-offer service providers.  As part of the pilot program, the commission shall also 
consider means of price hedging to achieve the purposes of Title 35-A, section 3212, 
subsection 2, paragraph E, including varying standard-offer service contract terms.  The 
commission shall structure the pilot program in a manner that reasonably reduces risks to 
standard-offer service customers and providers.  The commission shall by rule establish a 
reasonable term length for the pilot program in order to achieve the purposes of this section.  
Rules adopted under this section are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A.
Sec. 3.  Study of northern Maine standard offer; report.  The Public Utilities 
Commission, in consultation with the Governor's Energy Office and the Office of the 
Public Advocate, shall investigate methods to reduce standard-offer service rates for 
ratepayers in the area of the State administered by the independent system administrator 
for northern Maine. The investigation must include consideration of the demand and 
generation characteristics unique to the northern Maine service territory and identify 
mechanisms to reduce the cost of standard-offer service in northern Maine, including 
mechanisms to reduce the effect of natural gas price volatility on the prices of electricity 
supplied by sources of electrical generation that rely on other fuel types. On or before 
December 6, 2023, the commission shall submit a report of its findings, a summary of the 
pilot program developed under section 2 and any recommendations for reforming standard-
offer service in all areas of the State based on its findings, including any recommended 
proposed legislation, to the Joint Standing Committee on Energy, Utilities and Technology.  
The committee may report out a bill related to the subject matter of the report to the Second 
Regular Session of the 131st Legislature.
SUMMARY
This bill requires the Public Utilities Commission to structure and administer the bid 
process for standard-offer service in an area administered by the independent system 
administrator for northern Maine within the service territory of an investor-owned 
transmission and distribution utility in a manner that ensures stable standard-offer service 
rates for all classes of customers.  It also requires the commission to implement a pilot 
program for the area in order to develop innovative methods to achieve this goal.  It directs 
the Public Utilities Commission, in consultation with the Governor's Energy Office and the 
Office of the Public Advocate, to study methods to reduce standard-offer service rates for 
ratepayers in the northern Maine service territory.  It directs the commission to submit a 
report of its findings, a summary of the pilot program and any recommendations for 
reforming standard-offer service in all areas of the State based on its findings, including 
any recommended proposed legislation, to the Joint Standing Committee on Energy, 
Utilities and Technology.  The joint standing committee may report out a bill related to the 
subject matter of the report to the Second Regular Session of the 131st Legislature.