An Act to Reduce Electricity Rates
Maine Legislature, Session 131, LD 0683
Committee Amendment CA_A_H750 (House)
Amends: 2 MRSA §9, 35-A MRSA §3209-A, 35-A MRSA §3209-B, 35-A MRSA §3209-C, 35-A MRSA §3209-D, 35-A MRSA §3209-E, 35-A MRSA §3209-F

COMMITTEE AMENDMENT " ^" to H.P. 452, L.D. 683, "An Act to Reduce
Electricity Rates"
Amend the bill by striking out the title and substitutmg the followmg:
'An Act to Reduce Electricity Rates Through Changes to the State's Net Energy
Billing Programs'
Amend the bill by striking out everythmg after the enacting clause and inserting the
following:
'See. 1. 2 MRSA §9, sub-§6-A, as enacted by PL 2023,c.411, §1, is amended to
read:
6-A. Distributed Solar and Energy Storage Program. The Distributed Solar and
Energy Storage Program, referred to in this subsection as "the program," is established to
provide funding to foster the continued growth of cost-effective distributed solar facilities
and energy storage systems in this State. The office, as funding allows, shall develop the
program no later than July 1, 2024.
A. As used in this subsection, the followmg terms have the following meanings.
(1) "Distributed solar facility" means a solar generating facility interconnected to
a t-ansmission and distribution utility as defmed in Title 35-A, section 102,
subsection 20-B.
(2) "Energy storage system" has the same meaning as in Title 35-A, section 3481,
subsection 6.
B. The program must be designed to obtain and provide available federal funds to
support cost-effective distributed solar facilities and energy storage systems, The office
shall consult with the Public Utilities Commission m developing and admmistermg the
program.
C. In order to support the office's activities in administering the program, the office
may request funds from the Public Utilities Commission for the office's administrative
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costs, which may include, but are not limited to, costs associated with hiring
consultants and office personnel and contracting for technical analysis.
Notwithstanding Title 3 5-A, section 117, if the office requests funding in accordance
with this paragraph, the commission may provide funding, to the extent available, from
the Public Utilities Commission Reimbursement Fund under section 117. If the Public
Utilities Commission Reimbursement Fund doos not have sufficient funding,
notwithstanding Title 35-A, section 116, subsection /1, the commission may provide
funding from the Public Utilities CommiBQion Regulatory Fund in aooordanoo with this
paragraph.
D. The office shall apply for available federal funds to fund the program, including,
but not limited to, funds from the United States Environmental Protection Agency's
Greenhouse Gas Reduction Fund under 42 United States Code, Section 7434. Nothing
in this paragraph limits other uses of federal funds received by the office consistent
with applicable federal requirements.
E, Except as provided in paragraph C, ratepayer funds may not be used to implement
the program or to provide funding under the program to distributed solar facilities or
energy storage systems.
F ,_No later than January 15th of each year, the office_shall pro\dde a repQrt to the ioint
standine committee of the Legislature having jurisdiction over energy matters
summarizingits actiYities under the proeram and evaluatine the orosram's benefits and
costs to ratepayers .
Sec. 2. 35-A MRSA §3209-A, sub-§2, as enacted by PL 2019,c. 478, Pt. A, §3,is
amended to read:
2. Financial interest required. ¥be Except as otherwise provided in this section, the
commission shall allow a customer to participate in net energy billing if the customer has
a financial interest in a distributed generation resource or in a generation resource that has
a net energy billing arrangement on the effective date of this section, including facility
ownership, a lease agreement or a power purchase agreement.
Sec. 3. 35-A MRSA §3209-A, sub-§2-A is enacted to read:
2-A. Net energy billine termination. Except as provided in subsections 10 and 11
and notwithstandine any other provision of law to the contrary, after December 31. 2044.
a person may not oarticioate in net energy billins under this sectioiL
Sec. 4. 35-A MRSA §3209-A, sub-§3, as enacted by PL 2019, c. 478, Pt. A, §3,is
amended to read:
3. Shared financial interest for investor-owned utility customers; limitation.
Multiple customers of an investor-owned transmission and distribution utility that have
distinct billing accounts with that utility may share a financial interest in a distributed
8 generation resource under subsection 2. Any number of Subject to the provisions specified
in subsection 3-A. customers of an mvestor-owned transmission and distribution utility
with a shared financial interest in a distributed generation resource may participate in net
energy billing, except that the number of eligible customers or meters is limited to 10 for a
shared fmancial interest in a distributed generation resource located in the service territory
of an investor-owned transmission and distribution utility located in an area administered
by the independent system administrator for northern Maine or any successor of the
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independent system administrator for northern Maine unless the commission determines
that the utility's billing system can accommodate more than 10 accounts or meters for the
purpose of net energy billing.
Sec. 5. 35-A MRSA §3209-A, sub-§3-A is enacted to read:
3-A. Shared financial interest for investor-owned utility customers; 20-customer
limitation, Beginning October 1,2024, the following provisions apply.
A. Except as provided in tiaragraph B and subsection 10. no more than 20 customers
of an myestor-owned transmission and distribution utility may share a financial interest
in a distributed generation resource and participate in net energy billine under this
section^ In order to qualify tQ^articimtemn^^^ billing under this oaraeraoh. the
distributed generation resource must be located on the same side of a meter as one of
the customers sharing a financial interest and serve the electric load of that customer,
and at least 50% of the net energy billing credits associated with the output of the
distributed generation resource must be allocated to the retail account of that customer.
B. The limitation under paragraph A does not apply to;
d) A customer participating in net energy bUlin£under this section pursuant to a
net enerev billing agreement that was entered into prior to October 1. 2024; or
(2} _A municipality partjcmatmg in net enerev billine under this section in
connection with a distributed generation resowce^^^^tf distributed generation
resource is located on the same side of a meter as the municioalitv and serves the
electric load of that municipality and at least 25% of the net enerev billine credits
associated with the output of the distributed generation resource are allocated to
the retail account of that municipality.
An amendment, revision or reissuance of an aereement under this subsection that occurs
after October 1. 2024 may not be interpreted to affect the date on which the agreement was
initially executed.
Sec. 6. 35-A MRSA §3209-A, sub-§4, as enacted by PL 2019,c. 478, Pt. A,§3,is
amended to read:
4. System size. The Subject to the provisions specified in subsection 4-A. the
nameplate capacity of a distributed generation resource that may be used for net energy
billmg must be less than 5 megawatts, except that, if a municipality is the customer
participating in net energy billing, the nameplate capacity of a distributed generation
resource located m that municipality that may be used for the net energy billing may be 5
megawatts or more, as long as less than 5 megawatts of metered electricity from the
5 resource is used for net energy billing,
Sec. 7. 35-A MR8A §3209-A, sub-§4-A is enacted to read;
4-A^_System sizebeginnine October 1, 2024. Begmning October 1, 2024, the
following provisions apply,
A, Except as provided in paraeraoh B. the nameplate caoacitv of a distributed
generation resource that may be used for net energy billine under this section may not
bemore than onemegawatt, except that. if a municipalitv is the customer particbating
in net._energv billing, the nameplate capacity of a distributed eeneration resource
located m that municipality that may be used for the net energy billing may be greater
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than one megawatt. as lone as not more than one meeawatt ofmetered electricity from
the resource is used for net energy billing.
B. The limitation under paragraph A does not aooly to a customer oarticipatine in net
energy billing under this section pursuant to a net energy billing agreement that was
entered into prior to October 1.2024.
Sec. 8. 35-A MRSA §3209-A, sub-§9, as enacted by PL 2023, c. 411, §2, is
amended to read;
9. Applicability to projects between one mcgawatt and 2 mcgawatts greater than
one megawatt and not more than 2 megawatts. A distributed generation resource with
a nameplate capacity of at least greater than one megawatt and not more than 2 megawatts
may be used for net energy billing under this section only if the requirements of paragraph
A are met.
A. On or before December 31,2024, the proposed distributed generation resource must
reach commercial operation by the date specified in the net energy billing agreement
or by the date specified with an allowable modification to that agreement.
An entity proposing the development of a distributed generation resource that does not
meet the requirement of this subsection may petition the commission for a good-cause
exemption due to external delays outside of the entity's control, which the commission may
grant if it finds that without the external delays the entity could reasonably have been
expected to meet the requirement. A distributed generation resource that receives a eood-
cause exemption may not be used for net energy billing under this section unless it has
reachedcommercial_or>eration by December 3 1.2025.
Sec. 9. 35-A MRSA §3209-A, sub-§10 is enacted to read:
10. Consumer-owned small project exception; rules. In accordance with this
subsection, the commission may approve the use of a consumer-owned small project for
net enerpy billing under this section.
A. For the purposes of this subsection, "consumer-owned small project" means a
distributed seneration resource with a nameplate capacity of one meeawatt or lessthat
is wholly owned by the customers receiving the net energy billine credits associated
with the output of the distributed generation resource.
B, A consumer-owned small project is not subject to the provisions established in
2 subsections_2-A and 3 -A,
C. The commission may not aporove more than 10 consumer-owned small proi ects
under this subsection.
D, The commission may adopt mles to implement this_subsection. Rules adopted
pursuant to this subsection are routine technical rules as defined in Title 5. chauter 375,
subcharrter 2-A,
8 Nothing in this subsection prohibits the use of a distributed generation resource for net
energy billine if that distributed generation resource qualifies for net energy billmg under
subsection 3-A or 4-A.
Sec. 10. 35-A MRSA §3209-A, sub-§ll is enacted to read:
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COMMITTEE AMENDMENT " ^ " to H,P, 452, L.D. 683
11. Sinele customer exception. Notwithstanding any other provision of this section
to the contrary, a distributed generation resource may be used for net energy billing if the
distributed generation resource;
A, Is owned bv a customer;
B. Is used to serve the electric load of that customer only; and
C. Meets the criterion that 100% ofjhe net enerw billmg credits associated with the
output of the distributed generation resource are allocated to the retail account ofjhat
customer,
Sec. 11. 35-A MRSA §3209-B, sub-§3, as enacted by PL 2019, c. 478, Pt. A, §4,
is amended to read:
3. System size. %e Subject to the provisions specified in subsection 3-A. the
nameplate capacity of a distributed generation resource that may be used for net energy
billing under this section must be less than 5 megawatts.
Sec. 12. 35-A MRSA §3209-B, sub-§3-A is enacted to read;
3-A. System size beeinnine October 1, 2024. Besmning October 1. 2024, the
following erovisions apply.
A. Except as provided in paragraph B, the nameplate capacity of a distributed
generation resource that may be used for net energy billing under this section may not
be more than one megawatt.
B. The limitation under paraeraoh A does not apply to a customer participatine in net
energy billing under this section pursuant to a net_energY _bUlmg agreement that was
entered into prior to October 1,2024^
Sec. 13. 35-A MRSA §3209-B, sub-§4, as enacted by PL 2019,c,478, Pt, A, §4,
is amended to read:
4. Shared financial interest for investor-owned utility customers; limitation.
Multiple commercial or institutional customers that have distinct billing accounts with an
investor-owned transmission and distribution utility may share a financial interest m a
distributed generation resource under subsection 2. ABy-^BBBbw-ef Subject to the
provisions specified in subsection 4-A. commercial or institutional customers may
participate in net energy billing with a shared interest in a distributed generation resource,
except that the number of customers or meters is limited to 10 for a shared interest in a
distributed generation resource located in the service territory of an iavestor-owned
transmission and distribution utility located in an area administered by the independent
system administrator for northern Maine or any successor of the independent system
5 administrator for northern IVtauie unless the commission determmes that the utility's billing
system can accommodate more than 10 accounts or meters for the purpose of net energy
billing.
Sec. 14. 35-A MRSA §3209-B, sub-§4-A is enacted to read;
4-A. Shared financial interest for investor-owned transmission and distribution
utility; 20-customer limitation. Beginning October 1, 2024, the following provisions
applv.
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^
^•"" COMMITTEE AMENDMENT "{\ » to H,P. 452, L.D. 683
A. Except as rirovided in paragraoh B. no more than 20 customers of an investor-
owned transmission and distribution utility may share a. financial interest in a
distributed generation resource and participate in net energy billing under this section.
In order to Qualify to participate in net energy billing under this paragraph, the
distributed generation resource must be located on the same side of a meter as one of
the customers sharmg a financial interest and serve the electric load of that customer,
and at least 50% of the net enerev billine credits associated with the output of the
distributed generation resource must be allocated to the retail account of that customer.
B, The limitation under oaraeraph A does not aoolv to:
CD A customer oarticioatine; in net energy billins under this section pursuant to a
net energy billing agreement that was entered into prior to October 1. 2024; or
(2) A municipality participating m net energy billing under this section in
connection with a distributed generation resource if the distributed generation
resource is located on the same side of a meter as the mumcipalitv and serves the
electric load of that municipality and at least 25% ofthenet^nergv_billingj;redits
associated with the output of the distributed generation resource are allocated to
the retail account of that municipality.
An amendment, revision or reissuance of an agreement under this subsection that occurs
after October 1, 2024 may not be interpreted to affect the date on which the agreement was
uiitially executed.
Sec. 15. 35-A MRSA §3209-B, sub-§5, ^[D, as enacted by PL 2019, c. 478, Pt. A,
§4, is amended to read:
D. A customer participating in the program who remains eligible to participate in the
program must be allowed to receive a bill credit based on the tariff rate for a period of
no less than 20 years from the date of first receiving the credit or until December 31.
2044. whichever occurs first,
Sec. 16. 35-A MRSA §3209-B, sub-§5-A is enacted to read:
5-A. Net energy billine termination. Notwithstandine any other provision of law to
the contrary, after December 31. 2044 a person may not particroate in net energy billing
under this section.
Sec. 17. 35-A MRSA §3209-B, sub-§8, as enacted by PL 2023, c. 411, §4, is
repealed.
Sec. 18. 35-A MRSA §3209-C, sub-§2, ^B, as enacted by PL 2023, c, 411, §5, is
amended to read:
B. The commission shall allocate to each investor-owned transmission and distribution
6 utility its pro rata share of net energy billing costs. If the commission finds that a benefit
of distributed generation under net energy billing provides a monetized net financial
8 benefit to an investor owned transmission and distribution utility that the commission
does not otherwise account for when setting rates for the utility, the net financial benefit
must bo applied to offset tho net energy billing costs allocated under this paragraph.
The allocation must be based on each utility s total retail kilowatt-hour energy sales to
ratepayers that pay net energy billing costs. The commission may determine the means
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to be used for the allocation required under this subsection, and those means may
include the direct transfer of funds between transmission and distribution utilities.
Sec. 19. 35-A MRSA §3209-D, sub-§2, as enacted by PL 2023, c. 411, §6, is
repealed and the following enacted m its place;
2. Competitive solicitations and initial procurement. The commission shall
conduct one or more competitive solicitations in order to select distributed eeneration
resources for coirtracts under this subsection.
A. No later than November 1. 2024. the cQmmission shallinitiate the first comBetitive
solicitation in order to select distributed eeneration resources for contracts pursuant to
this subsection.
B, The commission shall select for a contract under this section any bid relating to a
distributed generation resource that the commission finds will result in substantial
savings to ratepayers as compared to the cost of the distributed generation resource
remaining in a net energy billine arrangement under section 3209-A or 3209-B. In
reviewing bids and establishing a contract price under this subsection, the commission
shall determine and consider the levelized cost of the energy that will be purchased
under the contract.
Sec. 20. 35-A MRSA §3209-E, sub-§l, ^[A, as enacted by PL 2023, c. 411, §7, is
amended to read:
A. "Distributed generation resource" has the same meaning as in section 3209-D,
subseotion I, paragfapfrA 3 209-A. subsection 1, paragraph B.
Sec. 21. 35-A MRSA §3209-F is enacted to read;
83209-F. Reviewof compensation; alteration
Notwithstanding the provisions of sections 3 209-A and 3209-B, the commission may
periodically review and alter by rule the amount of compensation, which may include a bill
credit based on tariff rate. that a customer with a financial interest in a djstrj^^
generation resource receives as a result of participating in net energy billing in accordance
with this section and section 101.
1. Review of compensation. The commission may periodically review and alter by
rule the amount of comuensation. which may include a bill credit based on the tariff rate.
that a customer with a financial interest in a distributed eeneration resource receives as -a
result of participating in net energy billing under section 3209-A or 3209-B. In making
any alteration under this section, the commission shall use a standard or representative
distributed generation resource to^^^^^ compensation provided under
section 3209-A or 3209-B and shall ensure that any alteration provides a reasonable
ooDortunitv for the recovery of reasonable costs, as determined by the commission, and a
reasonable rate of retirn. The commission, may not increase any compensation above the
8 lowest_amoynt.that woyld be received under section 3209-B ,
2. Alteration. The eommission may modify by rule the requirements under section
3209-A or 3209-B to the extent necessary to allow the State or a distributed generation
resource oarticioatme in a net energy billine arraneement under section 3209-A or 3209-B
to qualify for federal grants or subsidies that benefit ratepayers in this State,
COMMITTEE AMENDMENT
^
COMMITTEE AMENDMENT " f\ " to H,P. 452, L,D. 683
^ 1 3. Rules. Rules_adoBtedj3ursuant to this, section are major substantive rules as defined
in Title 5. chapter 375. subchaoter 2-A,'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment replaces the bill, which is a concept draft, and changes the title. The
amendment does the following.
1. It removes the language that authorizes the Public Utilities Commission to provide
funds to the Governor's Energy Office from the Public Utilities Commission Regulatory
Fund for the office's administrative costs associated with the Distributed Solar and Energy
Storage Program established by the Maine Revised Statutes, Title 2, section 9, subsection
6-A and requires the office to provide an annual report on the program.
2, Beginning October 1, 2024, it limits the number of customers who may share a
financial interest in a distributed generation resource and participate in the kilowatt-hour
credit and tariff rate net energy billing programs to 20 customers subject to certain
conditions. It creates exceptions to the limitation for a customer participating in net energy
billing pursuant to an agreement entered into prior to October 1,2024 and for a municipality
if the distributed generation resource is on the same side of the meter as the municipality
and at least 25% of the net energy billing credits associated with the output of the
distributed generation resource are allocated to the municipality.
3, Beginning October 1, 2024, it limits the nameplate capacity of a distributed
generation resource that may be used for the kilowatt-hour credit and tariff rate net energy
billing programs to one megawatt or less, except the limitation does not apply to a customer
participating m accordance with an agreement entered into prior to October 1,2024. It also
creates an exception to this limitation for a distributed generation resource in the
kilowatt-hour credit net energy billing program that applies if the distributed generation
resource is owned by the customer and is used to serve the electric load of that customer
only and 100% of the net energy billing credits associated with the distributed generation
resource are allocated to the retail account of that customer.
4, It provides that, after December 31, 2044, a person is prohibited from participating
in the tariff rate net energy billing program and the kilowatt-hour credit net energy billing
program, except that a person may participate in the kilowatt-hour credit net energy billing
program beyond December 31, 2044 m connection with a project approved by the
commission as described in Title 35-A, section 3209-A, subsection 10.
5. It establishes limitations on participation in the kilowatt-hour credit and tariff rate
6 net energy billing programs for distributed generation resources with a nameplate capacity
of greater than one megawatt and not more than 2 megawatts.
6. It provides that a customer participating in the tariff rate net energy billing program
who remains eligible to participate in the program may receive a bill credit based on the
tariff rate for a period of no less than 20 years from the date of first receiving the credit or
until December 3 1,2044, whichever occurs first.
7. It removes the requirement that the commission apply any monetized net financial
benefits that are not otherwise accounted for when setting rates to offset the net energy
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3?
•"' 1 billing costs that may be allocated to the investor-owned transmission and distribution
utility.
8. It makes changes to the timing and selection requirements for the competitive
solicitation and procurement required by Title 3 5-A, section 3209-D.
9. It allows the commission to periodically review and by rule alter the amount of
compensation that a customer with a financial interest in a distributed generation resource
receives as a result of participating m net energy billing,
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 01/30/24 /!^%5?ct
LD 683 LR 1892(02)
An Act to Reduce Electricity Rates
Fiscal Note for Bill as Amended by Committee Amendment "/\" (J-+"
Committee: Energy, Utilities and Technology
Fiscal Note Required: Yes
Fiscal Note
Removes Funding Option
Minor cost increase - Other Special Revenue Funds
Fiscal Detail and Notes
This bill removes a provision enacted in LD 1986 (P.L. 2023, c.411) that authorized the Public Utilities Commiss;
(PUC) to provide funds for administrative costs to the Governor's Energy Office (GEO) from the PUC Regulatory
Fund. Because the bill retains the provisions that allow the PUC to provide funding from the PUC Reimbursement
Fund, no changes are required to the allocations provided in LD 1986.
Any additional costs to the PUC or the GEO to implement the other provisions of this bill are expected to be minor
and can be absorbed within existing budgeted resources,
LR1892(02) - Fiscal Note - Page 1 of 1