An Act to Expand Energy Choice Through Municipal Utilities
Maine Legislature, Session 131, LD 0905
Committee: Energy, Utilities and Technology
Sponsors: GEIGER
Amends: 35-A MRSA §2102, 35-A MRSA §3773, 35-A MRSA §3903, 35-A MRSA §3904

Legislative Document
No. 905
H.P. 561
House of Representatives, February 28, 2023
An Act to Expand Energy Choice Through Municipal Utilities
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative GEIGER of Rockland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §2102, sub-§1, ¶B is enacted to read:
B.  For a municipal power district created under chapter 39 or a cooperative created 
under chapter 37 seeking to furnish service in or to any municipality in or to which an 
investor-owned transmission and distribution utility, as defined in section 3201, 
subsection 11-A, is furnishing or is authorized to furnish a similar service, 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 
or chapter 37 for the creation of a cooperative have been complied with and that there 
is no proven net harm to other ratepayers associated with the loss of customers by the 
investor-owned transmission and distribution utility that will result from the 
commission’s approval of the district under this subsection.
Sec. 2.  35-A MRSA §3773 is enacted to read:
§3773.  Transfer of property; payment of just compensation
When a cooperative is created under this chapter and approved by the commission 
under sections 2102 and 3772, the transmission and distribution utility furnishing service 
to the cooperative’s members must facilitate the transfer of property in accordance with the 
commission’s approval. The cooperative shall pay the transmission and distribution utility 
just compensation, as determined by the commission, for the property of the transmission 
and distribution utility.
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 municipality's decision to furnish service 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-§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 the municipalities' decisions to furnish service 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 or a rural electrification cooperative’s proposal to furnish service in a municipality 
in which an investor-owned transmission and distribution utility is already furnishing 
service to the commission’s determination that there is no proven net harm to other 
ratepayers in the investor-owned transmission and distribution utility losing customers and 
the municipal power district or cooperative was created in conformance with applicable 
law.  
The bill specifies that a transmission and distribution utility furnishing service in the 
municipality or municipalities where a municipal power district or cooperative 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.