An Act to Create the Pine Tree Power Company, a Nonprofit, Customer-owned Utility Transmitted to the Clerk of the 131st Maine Legislature by the Secretary of State on April 10, 2023 and ordered printed.
Maine Legislature, Session 131, LD 1611
Amends: 5 MRSA §12004-G, 35-A MRSA §4002, 21-A MRSA §354, 21-A MRSA §1011, 35-A MRSA §1511-A, 35-A MRSA §3501, 35-A MRSA §3502, 35-A MRSA §3506

Legislative Document
No. 1611
I.B. 2
House of Representatives, April 11, 2023
An Act to Create the Pine Tree Power Company, a Nonprofit, 
Customer-owned Utility
Transmitted to the Clerk of the 131st Maine Legislature by the Secretary of State on April 
10, 2023 and ordered printed.
ROBERT B. HUNT
Clerk
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §12004-G, sub-§36 is enacted to read:
36.  
Public 
Utilities 
Pine Tree Power Company Board 
$110/Day and 
Expenses 
35-A MRSA 
§4002 
Sec. 2.  21-A MRSA §354, sub-§5, ¶G, as enacted by PL 1985, c. 161, §6, is 
amended to read:
G.  For a candidate for State Representative, at least 50 and not more than 80 voters; 
and
Sec. 3.  21-A MRSA §354, sub-§5, ¶H, as enacted by PL 1985, c. 161, §6, is 
amended to read:
H.  For a candidate for county charter commission member, at least 50 and not more 
than 80 voters.; and
Sec. 4.  21-A MRSA §354, sub-§5, ¶I is enacted to read:
I.  For a candidate for member of the Pine Tree Power Company Board under Title 
35-A, section 4002, subsection 2, paragraph A, at least 300 and not more than 400 
voters.
Sec. 5.  21-A MRSA §1011, first ¶, as amended by PL 2013, c. 334, §2, is further 
amended to read:
This subchapter applies to candidates for all state and county offices and to campaigns 
for their nomination and election.  Candidates for municipal office as described in Title 
30‑A, section 2502, subsection 1 and candidates for the Pine Tree Power Company Board 
as described in Title 35-A, section 4002 are also governed by this subchapter.  The 
commission does not have jurisdiction over financial activities to influence the nomination 
or election of candidates for federal office.
Sec. 6.  35-A MRSA §1511-A is enacted to read:
§1511-A.  Fitness to serve
The commission shall find a transmission and distribution utility with 50,000 or more 
customers unfit to serve and shall require and ensure the sale of the utility, to be completed 
within 24 months, if 4 or more of the following statements are true of the utility:
1.  Customer satisfaction.  The utility has been rated for 2 or more of the past 5 years 
among the lowest decile of utilities of a similar size for customer satisfaction on a nationally 
recognized survey of United States utility business or residential customers;
2.  Reliability.  The utility has been found by the commission or by the United States 
Energy Information Administration for 2 or more of the past 5 years to have overall 
reliability in terms of outage minutes per year, with or without major event days, in the 
lowest decile of utilities of a similar size in the country;
3.  Affordability.  In 2 or more of the past 5 years, the utility charged residential 
delivery rates reasonably estimated to be in the highest decile among utilities of a similar 
size in the country, based on data from the United States Energy Information 
Administration and based on the commission's analysis of average delivery rates as a 
proportion of the average total bill for integrated utilities;
4.  Employees.  The utility has within the previous year contracted with a business to 
perform work valued at more than $100,000 that could reasonably have been performed by 
qualified, nonexempt employees of the utility;
5.  Security.  The utility owns critical infrastructure vital to the security and welfare of 
the State and is presently owned, either wholly or in a part greater than 5%, by a government 
that does not represent or govern the captive customers of the utility;
6.  Customer obligations.  The utility, due to its corporate structure, requires that 
customers pay for the cost of the utility's corporate taxes, and also pay for shareholder 
profits exceeding 10% on prudent capital investment in transmission infrastructure, with 
little to no risk for poor performance;
7.  Disaster assistance.  The utility, due to its corporate structure, may require that 
customers pay directly or indirectly for 90% or more of damages to the utility's assets 
caused by extreme weather events, and may also deny the utility access to federal 
emergency management assistance to reduce or eliminate these costs; or
8.  Priorities.  The utility, due to its corporate structure and fiduciary obligations, is 
unable to place the needs of customers, workers or the State's climate and connectivity 
goals ahead of the desires of shareholders to earn a profit.
Sec. 7.  35-A MRSA §3501, sub-§1, ¶D, as amended by PL 2019, c. 311, §2, is 
further amended to read:
D.  The portion of any municipal or quasi-municipal entity located in the State 
providing transmission and distribution services; and
Sec. 8.  35-A MRSA §3501, sub-§1, ¶E, as amended by PL 2019, c. 311, §2, is 
further amended to read:
E.  Any transmission and distribution utility wholly owned by a municipality located 
in the State.; and
Sec. 9.  35-A MRSA §3501, sub-§1, ¶F is enacted to read:
F.  The Pine Tree Power Company established in chapter 40.
Sec. 10.  35-A MRSA §3502, first ¶, as amended by PL 1999, c. 398, Pt. A, §86 
and affected by §§104 and 105, is further amended to read:
Notwithstanding section 310, any consumer-owned transmission and distribution 
utility, except for the Pine Tree Power Company established in chapter 40, that proposes 
to increase rates, tolls or charges by not more than 15% of the utility's annual operating 
revenues or proposes to decrease rates, tolls or charges in any amount may elect to set rates 
pursuant to this section and section 3503.
Sec. 11.  35-A MRSA §3506 is enacted to read:
§3506.  Voter approval conditioned on parity
Notwithstanding any other provision of law, neither utility debt nor the incurrence of 
utility debt is subject to statewide voter approval, unless and until voter approval of utility 
debt and of the incurrence of such debt is required equally for both investor-owned and 
consumer-owned utilities operating in the State.
Sec. 12.  35-A MRSA c. 40 is enacted to read:
CHAPTER 40
PINE TREE POWER COMPANY
§4001.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Acquired utility.  "Acquired utility" means an investor-owned transmission and 
distribution utility whose facilities or property are purchased or intended for purchase 
pursuant to this chapter.
2.  Board.  "Board" means the Pine Tree Power Company Board established in Title 
5, section 12004-G, subsection 36.
3.  Company.  "Company" means the Pine Tree Power Company established in section 
4002.
4.  Cost of service.  "Cost of service" means the total amount that must be collected by 
the company to recover its costs but does not include any return on capital investment 
unless a return is required as security for debt service.
5.  Customer-owner.  "Customer-owner" means a person to whom the company 
provides electricity.
6.  Generating source.  "Generating source" means a machine or device that produces 
electric energy by any means.
7.  Utility facility.  "Utility facility" means any portion of a plant used or useful in 
providing transmission and distribution utility service and includes, but is not limited to, 
transmission lines, office buildings, equipment and transportation equipment.
8.  Utility property.  "Utility property" means any tangible or intangible asset, liability, 
obligation, plan, proposal, share, agreement or interest of a utility; any facility in 
development or planning by the utility as of January 1, 2020; and, without limitation, the 
entire utility and any part or portion of the utility.
§4002.  Pine Tree Power Company established; purpose
The Pine Tree Power Company is established to provide for its customer-owners in this 
State reliable, affordable electric transmission and distribution services in accordance with 
this chapter.
1.  Company purposes.  The company shall use its access to low-cost capital and its 
ability to manage the electric transmission and distribution system in a manner that is not 
focused on ensuring shareholder profits for the following purposes:
A.  To deliver electricity to the company's customer-owners in a safe, affordable and 
reliable manner;
B.  To ensure excellence, timeliness and accuracy in billing, metering and customer 
service;
C.  To provide an open, supportive and competitive platform to develop and deploy 
renewable generation, storage, efficiency and beneficial electrification technologies;
D.  To assist the State in rapidly meeting or exceeding the climate action plan goals 
established in Title 38, chapter 3-A;
E.  To improve the State's Internet connectivity through more affordable access to 
utility poles and other infrastructure in unserved or underserved areas of the State, as 
defined in section 9202, subsection 5;
F.  To advance economic, environmental and social justice and to benefit company 
workers and all communities in the State;
G.  To provide for transparent and accountable governance; and
H.  To support, secure and sustain economic growth and benefits for the State.
2.  Governance; board.  The company is created as a body corporate and politic and 
is governed by the Pine Tree Power Company Board in accordance with this section.
The board is composed of 13 voting members, 7 of whom are elected members and 6 of 
whom are designated members chosen by the elected members.  All members must be 
residents of the State.
A.  As of the last date for filing a nomination petition under Title 21-A, section 354, 
each of the 7 elected members must be a legal citizen of the United States for at least 
years, must be at least 21 years of age, must be a legal Maine resident for at least one 
year, must be a resident of the area the member represents as provided in this paragraph 
for at least 3 months and may not hold a state elected office.  Each elected member 
represents 5 of the State's 35 State Senate districts, as set out in Title 21-A, section 
1203-B, as follows:
(1)  One member represents State Senate districts 1 to 5;
(2)  One member represents State Senate districts 6 to 10;
(3)  One member represents State Senate districts 11 to 15;
(4)  One member represents State Senate districts 16 to 20;
(5)  One member represents State Senate districts 21 to 25;
(6)  One member represents State Senate districts 26 to 30; and
(7)  One member represents State Senate districts 31 to 35.
If during an elected member's term the member's place of residence as a result of 
reapportionment is no longer included in the area the member was elected to represent, 
the member may continue to serve the remainder of the term.
B.  The 6 designated members must be selected by the elected members.  The 
designated members must collectively possess expertise and experience across the 
following 6 areas:
(1)  Utility law, management, planning, operations, regulation or finance;
(2)  The concerns of utility employees and other workers;
(3)  The concerns of commercial or industrial electricity consumers;
(4)  Electricity generation, storage, efficiency, delivery, cybersecurity, connectivity 
or related technologies;
(5)  Planning, climate mitigation, adaptation or the environment; and
(6)  Economic, environmental and social justice, including the needs of low-
income and moderate-income persons.
C.  Candidates for election to the board pursuant to paragraph A are eligible for funding 
through the Maine Clean Election Act, in amounts and under terms commensurate with 
those for candidates for the State Senate.  The Commission on Governmental Ethics 
and Election Practices, established pursuant to Title 5, section 12004-G, subsection 33, 
shall adopt rules to implement this paragraph.  Rules must include, at a minimum, the 
procedures for qualifying and certification and for allocation of distributions from the 
fund and other provisions necessary to ensure consistency with the provisions of the 
Maine Clean Election Act.  Rules adopted pursuant to this paragraph are major 
substantive rules as defined in Title 5, chapter 375, subchapter 2-A.
D.  Candidates for election to the board pursuant to paragraph A are subject to the 
requirements of Title 21-A, chapter 13.
E.  The nomination of candidates for elected members of the board is governed by Title 
21-A, chapter 5, subchapter 2, and the determination of the election is governed by 
Title 21-A, section 723-A.  The Secretary of State may adopt rules governing the 
election of members of the board and shall consult with the commission in developing 
the rules. Rules adopted under this paragraph are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A.
3.  Term of office.  An elected member of the board serves for a term of 6 years and a 
designated member of the board serves for a term of 6 years.  An elected member serves 
from January 1st to December 31st and a designated member serves from March 1st to the 
end of February.  A majority of members shall declare a vacancy on the board upon the 
resignation, death or incapacitation of an elected member, in the event that a member is 
absent without leave of the chair for at least half of all board meetings held in a 180-day 
period or in the event of a member's gross and continual neglect of duty.  If there is a 
vacancy on the board of a designated member, it must be filled within 180 days in the same 
manner as described in subsection 2, paragraph B, and the person selected to fill a vacancy 
serves for the unexpired term of the member whose vacancy the person is filling.  If there 
is a vacancy on the board of an elected member, the board shall notify the Secretary of 
State, who shall establish a deadline of no sooner than 60 days after being notified of the 
vacancy to accept nomination petitions for a special election. A special election must be 
held within 180 days of notification of the vacancy and declared in the manner prescribed 
by Title 21-A, section 366.  The person elected to fill a vacancy serves for the unexpired 
term of the member whose vacancy the person is filling.  Designated members may be 
reselected and elected members may be reelected.
4.  Quorum and chair.  Seven members of the board constitute a quorum.  The board 
shall elect from its members a chair and a vice-chair.  The vice-chair shall serve as acting 
chair in the absence of the chair.
5.  Voting.  Except as otherwise provided in this Title, all decisions of the board must 
be made by a majority vote of the members present.  Whenever possible, the board shall 
attempt to achieve consensus among members.
6.  Bylaws; due diligence.  Prior to making a purchase price offer for any utility facility 
or utility property, the board shall adopt bylaws, retain expert professional staff and 
consultants, secure initial financing, conduct due diligence as it considers necessary and 
develop a transition plan and a business plan for the company.
7.  Board review.  Four years after the first meeting of the board, the board shall review 
the effectiveness of the company governance structure and shall report to the joint standing 
committee of the Legislature having jurisdiction over energy and utilities matters the 
outcome of this review.  The report may suggest necessary changes to the governance 
structure of the company.  The committee may report out legislation pertaining to the 
recommendations in the report.
§4003.  Powers and duties; acquisition of utility facilities and utility property
1.  Powers; generally.  The company is a consumer-owned transmission and 
distribution utility and has all the powers and duties of a transmission and distribution 
utility under this Title, as affected by the provisions of chapter 35, within the service 
territories of the investor-owned transmission and distribution utilities whose utility 
facilities it acquires under this chapter.
2.  Limits on company; generating property.  The company may not own or operate 
a generating source or purchase electric capacity or energy from a generating source, except 
as the commission may approve in order to allow the company to maintain or improve 
system reliability.
3.  Private sector, competitive, performance-based operations.  The company shall 
contract by means of a competitive public solicitation the services of at least one qualified 
nongovernmental entity, referred to in this chapter as "the operator" or "the operations 
team," to provide cost-effective, private sector operations, maintenance, customer accounts 
management and customer service and information and to assist as necessary in regulatory 
affairs, capital planning and administrative services.  The company may not contract with 
an operator that has managed a company found to be unfit within the previous 10 years.  
The company may contract with separate operators for each of the service territories of the 
acquired utilities, or to meet discrete operations, maintenance or other requirements.  In 
requesting and evaluating bids pursuant to this section, the board shall consider anticipated 
costs; professional, operational and managerial experience; familiarity with the systems to 
be administered; and ability to improve customer service and employee morale.  The 
company may establish additional criteria for its solicitation and shall determine the period 
and the specific terms of each operations contract.  The commission shall review and 
approve, reject or approve with conditions any contract between the company and an 
operator before it takes effect.  A contract with an operations team must reward proven 
performance, not the provision of capital, and must provide for the efficient and effective 
fulfillment of the company's purposes under section 4002.
4.  Retention of employees.  The operator shall hire any person who was an employee 
of the acquired utility at the time the company acquired the utility facilities who is a 
qualified, nonexempt employee subject to collective bargaining agreements of the acquired 
utility and may hire any other person who was an employee of the acquired utility with the 
exception of those employees on the executive board of the acquired utility.  To ensure 
continuity and an experienced local workforce, the operations team shall offer to these 
employees a retention bonus of 8% of annual gross pay for the first year of work and 6% 
of annual gross pay for the 2nd year of work.  This bonus must be payable on the earlier of 
the anniversary of the date of hire by the operator and the date of a termination of 
employment that occurs following the date of hire, as long as the termination is due to the 
employee's death or disability, by the employer without cause or by the employee for good 
reason.  The operations team shall maximize opportunities for internal promotion, 
additional staffing and on-the-job training for all employees and may not contract with 
other businesses to perform work that could reasonably have been performed by qualified, 
nonexempt employees of the operations team.
5.  Rights of employees.  The employees of the operations team retained to operate the 
company's facilities are private employees.  Notwithstanding any provision of law to the 
contrary, the company shall at a minimum accord all qualified, nonexempt employees and 
their representatives the same rights as would an investor-owned transmission and 
distribution utility.  The operator may not limit or impair the ability and right of its 
employees to strike or to engage in any work stoppage or slowdown and may not hire 
replacement employees permanently during an employee strike.  The operator shall notify 
employee representatives of new hires and shall allow representatives of employees 
reasonable access to work sites during work hours.  The operator shall assume all retirement 
benefit obligations to the employees of and retirees of an acquired utility, unless these 
obligations have remained with the acquired utility, its corporate parent or a pension plan 
trust regulated by the federal Employee Retirement Income Security Act of 1974.  The 
operator shall honor and maintain the terms of any collective bargaining agreements in 
effect at the time the company acquired the investor-owned transmission and distribution 
utility for the remaining term of any collective bargaining agreement, except that, when 2 
or more contracts exist, the employees' wages, salaries and benefits must be made 
reasonably equal to the higher of those provided in the contracts or must exceed those 
previously paid by the acquired utility.
Upon the conclusion of a contract pursuant to subsection 3, the company, in soliciting for 
a new contract, shall give preference to service providers that agree to maintain or improve 
the terms of the collective bargaining agreement in existence on the conclusion of the prior 
contract.
6.  Acquisition of utility facilities and utility property.  Notwithstanding any other 
provision of this Title, rules adopted under this Title or any other applicable law to the 
contrary, the company shall purchase or acquire by the exercise of the right of eminent 
domain all utility facilities in the State owned or operated or held for future use by any 
investor-owned transmission and distribution utility, in accordance with this subsection, 
and may also purchase or acquire by the exercise of the right of eminent domain in 
accordance with this subsection any other investor-owned transmission and distribution 
utility property should the board determine such an acquisition to be in the interest of its 
customer-owners.  The company shall finance the purchase or acquisition of utility 
facilities or utility property under this subsection by issuing debt in accordance with chapter 
9.  The board may not purchase or acquire by the right of eminent domain any utility 
facilities or utility property under this subsection until 12 months after the effective date of 
this chapter or 6 months after the first meeting of the board, whichever is later.
A.  Within 18 months after the effective date of this chapter or 12 months after the first 
meeting of the board, whichever is later, unless further delayed to a date certain by a 
vote of at least 9 members of the board, the company shall:
(1)  Identify the utility facilities and any other utility property in the State owned 
or operated or held for future use by any investor-owned transmission and 
distribution utility to be purchased by the company;
(2)  Determine a purchase price offer to be made for the utility facilities and other 
utility property.  The purchase price offer must include compensation for the cost 
of preparing and submitting necessary regulatory filings, including but not limited 
to those required by the federal Department of Energy, Federal Energy Regulatory 
Commission; and
(3)  Deliver notice of the purchase price offer, including detailed description of the 
utility facilities and other utility property to be purchased, to the investor-owned 
transmission and distribution utility that owns, operates or holds for future use the 
subject utility facilities and utility property.
By a vote of at least 9 members of the board, the company may delay by up to one year 
the purchase of the utility facilities and any other utility property of one of the 2 
investor-owned transmission and distribution utilities in the State and proceed with the 
purchase of the utility facilities and any other utility property of the other investor-
owned transmission and distribution utility in the State.  A delay approved by the board 
under this paragraph may be renewed once in the same manner for up to one additional 
year.
B.  After the receipt of a notice of the purchase price offer under paragraph A, 
subparagraph (3), the investor-owned transmission and distribution utility may, within 
days of the date of receipt, submit a counteroffer to the company.  If the company 
rejects the counteroffer, within 30 days of the date of receipt of the rejection the 
investor-owned transmission and distribution utility may petition the Superior Court of 
Kennebec County to determine and order an alternative purchase price for the subject 
utility facilities or utility property in accordance with this paragraph.  The purchase 
price determined by the court must include compensation for the cost of preparing and 
submitting necessary regulatory filings, including but not limited to those required by 
the federal Department of Energy, Federal Energy Regulatory Commission.  After the 
filing of a petition by an investor-owned transmission and distribution utility under this 
paragraph, the Superior Court, as expeditiously as possible, shall:
(1)  Select, in consultation with the company and the petitioner, a referee or referees 
with relevant expertise and capabilities to determine a recommended purchase 
price for the utility facilities and utility property;
(2)  Complete a trial or hearing, as appropriate, for the presentation of evidence to 
referees, who shall submit a recommended purchase price to the court; and
(3)  Render a decision and, based upon the recommended purchase price submitted 
under subparagraph (2) and any other information available to the court, order a 
purchase price to be paid by the company to the petitioner for possession and 
ownership of the subject utility facilities and utility property.
The decision of the Superior Court under this paragraph is appealable to the Law Court 
as in any civil action.
C.  The taking of utility facilities and utility property by the company is governed by 
this paragraph.
(1)  Notwithstanding chapter 65 or any other provision of law to the contrary, if a 
petition is filed under paragraph B and if the company and subject utilities do not 
reach an agreement, the company shall, after any appeals are resolved, immediately 
take the subject utility facilities and utility property identified in paragraph A at the 
final price rendered by the court.
(2)  Notwithstanding chapter 65 or any other provision of law to the contrary, if a 
petition is not filed under paragraph B and if the company and subject utilities do 
not reach an agreement, the company shall immediately take the subject utility 
facilities and utility property identified in paragraph A at the purchase price offer.
Within 45 days of the date upon which the purchase price is either mutually agreed upon 
by the company and the investor-owned transmission and distribution utility or is finally 
determined through the judicial process set forth under paragraph B, the investor-owned 
transmission and distribution utility shall prepare and submit any regulatory filings 
necessary to the transfer of subject utility facilities and utility property, including but not 
limited to those required by the federal Department of Energy, Federal Energy Regulatory 
Commission.  If the investor-owned transmission and distribution utility does not prepare 
and submit such filings within 45 days, the company may request that the commission 
investigate the utility's failure to prepare and submit the filings.  Upon such a request from 
the company, the commission shall, in a timely manner, investigate the utility's failure to 
prepare and submit the filings.  If the commission finds the investor-owned transmission 
and distribution utility unreasonably delayed or failed to prepare and submit the filings, or 
failed to prosecute and pursue federal regulatory approvals of the transfer in good faith, the 
commission shall direct the utility to do so by a date certain and may order other remedies, 
including deducting the cost of preparing and submitting such regulatory filings from the 
purchase price or otherwise preventing the utility from recouping the cost and requiring the 
utility to pay for costs to other parties caused by the delay.
If at any time during the process prescribed in this subsection the company and either of 
the investor-owned transmission and distribution utilities reach an agreement on the 
purchase price of all utility facilities and utility property in the State owned or operated or 
held for future use by that investor-owned transmission and distribution utility, the sale 
may be finalized in accordance with that agreement.
The commission shall impose such conditions on the acquisition of all utility facilities and 
utility property in the State owned or operated or held for future use by any investor-owned 
transmission and distribution utility as it determines are necessary to protect the public 
interest during the period between the effective date of this chapter and the date on which 
ownership and control are fully assumed by the company and the operations team.  The 
commission shall take all necessary actions to ensure that the investor-owned transmission 
and distribution utilities and their owners cooperate fully, promptly and cost-effectively 
with the company during the transition in ownership and control. The commission may 
allow recovery by or reimbursement to the utility of necessary expenses associated with 
the transition.  At a minimum, the utility must be required to plan, construct, operate and 
maintain facilities and to cooperate with customers, generators and other stakeholders to 
the same extent that the commission would require of any transmission and distribution 
utility and to provide the company such information as may be necessary to meet its 
responsibilities under this Title, including but not limited to a detailed inventory of assets.
7.  Existing obligations.  All existing agreements, obligations and contracts, including 
but not limited to long-term contract obligations and net energy billing agreements of an 
investor-owned transmission and distribution utility, must be transferred to the company 
and any counterparty to an agreement, obligation or contract shall accept the assignment of 
the investor-owned transmission and distribution utility to the company.
8.  Regional transmission.  The service territories of the company initially remain in 
the transmission system to which they belonged on the effective date of this chapter until 
changed by majority vote of the board.
9.  Names.  The company may adopt one or more alternative or regional names to 
distinguish its service territories or for any other purpose.
10.  Rules.  The company may adopt rules pursuant to Title 5, chapter 375, subchapter 
2-A for establishing and administering the company and carrying out its duties.  Rules 
adopted pursuant to this subsection are major substantive rules as defined in Title 5, chapter 
375, subchapter 2-A.
11.  Bylaws.  The company shall adopt bylaws, through the board, consistent with this 
section for the governance of its affairs.
12.  Consumer-owned transmission and distribution utilities; application.  This 
subsection controls the treatment of consumer-owned transmission and distribution utilities 
and the application of law to the company.
A.  This chapter may not be construed to affect the powers, authorities or 
responsibilities of any consumer-owned transmission and distribution utility other than 
the company created under this chapter.  The company may not oppose the extension 
of the service territory of a consumer-owned transmission and distribution utility 
existing prior to the effective date of this chapter to include the entirety of a 
municipality in which the consumer-owned transmission and distribution utility 
provides electric service as long as the company is reasonably compensated for the 
assets and appurtenances required.
B.  Notwithstanding any other provision of this chapter or any other provision of law 
to the contrary, the company is subject to section 310; section 3104; section 3132, 
subsection 2-D; sections 3132-A, 3132-B, 3132-C and 3132-D; section 3144; section 
3210-C, subsections 3, 7 and 11; sections 3212 and 3212-B; and section 3214, 
subsection 2-A.
13.  Board staff; initial activities.  The board shall hire qualified and professional 
staff, including but not limited to a director or manager, chief financial officer, support staff 
and legal counsel.  Assistance and counsel may be provided to the board by the Office of 
the Treasurer of State, the Office of the Attorney General, the Maine Municipal Bond Bank, 
the Finance Authority of Maine, the commission, the Office of the Public Advocate and 
any other state entity.  All initial activities and expenditures of the board prior to the final 
acquisition of utility facilities and utility property must be funded by short-term debt of the 
company, to be retired in the initial financing and acquisition of the investor-owned 
transmission and distribution utility facilities and utility property.  Notwithstanding any 
provision of the law to the contrary, debt incurred by the board for its initial activities and 
expenditures is presumed to be prudently incurred on behalf of the customers of the 
investor-owned transmission and distribution utilities and is recoverable in rates, except 
where proven to be imprudent beyond a reasonable doubt. To the extent that the company's 
initial activities are specifically attributable to one but not both acquired utilities, those 
separately attributable costs must be recovered from ratepayers of the utility to which they 
are attributable.
§4004.  Cost-of-service rates
The rates and all other charges of the company must be sufficient to pay in full the cost 
of service, including the cost of debt and property taxation.
§4005.  No use of state funds or tax dollars
Debt or liability of the company is not a general obligation or moral obligation of the 
State or any agency or instrumentality of the State other than the company, and neither the 
State nor any agency or instrumentality of the State other than the company guarantees any 
debt or liability of the company.
§4006.  No debt or liability of the State
The company serves a public purpose in the carrying out of the provisions of this 
chapter, but debt or liability of the company is not a general obligation or moral obligation 
of the State.
§4007. Voter approval
Notwithstanding any other provision of law enacted on or before the date upon which 
this chapter is enacted, if this chapter is approved by voters of the State at a statewide 
election, debt or liability of the company is not subject to additional voter approval.
§4008.  Property and income tax status
1.  Property tax.  Notwithstanding Title 36, chapter 105, subchapter 4, the company 
is subject to property taxation pursuant to the laws of the State and must pay property tax 
in the same manner as an investor-owned transmission and distribution utility.  Rates 
charged by the company must include sufficient amounts to pay property taxes due under 
this subsection.
2.  Income tax.  Notwithstanding any provision of law to the contrary, income of the 
company is exempt from all taxation or assessment by the State or any political subdivision 
of the State.  All bonds, notes and other evidences of indebtedness issued by the company 
in accordance with chapter 9 are legal obligations of the company, and the company is a 
quasi-municipal corporation within the meaning and for the purposes of Title 30-A, section 
5701.  All bonds, notes and other evidences of indebtedness issued by the company are 
legal investments for savings banks in this State and are exempt from state income tax.
3.  Tax increment financing agreements.  If an investor-owned transmission and 
distribution utility acquired by the company is subject to a tax increment financing 
agreement under Title 30-A, chapter 206, the company acquires the same rights and 
responsibilities as applied to the investor-owned transmission and distribution utility under 
the agreement.
§4009.  Termination of the company
The company may not be dissolved or cease operations except by authorization of law 
and only if all debt and liabilities of the company have been paid or a sufficient amount for 
the payment of all debt and liabilities has been placed in an irrevocable trust for the benefit 
of the holders of the debt and only if any remaining equity of the company is returned in 
an equitable manner to the customers of the company.
§4010.  Freedom of access; confidentiality
The proceedings and records of the company are subject to the freedom of access laws, 
Title 1, chapter 13, except as specifically provided in this section.
1.  Confidential records.  The following records are designated as confidential for 
purposes of Title 1, section 402, subsection 3, paragraph A:
A.  A record obtained or developed by the company that a person, including the 
company, to whom the record belongs or pertains has requested be designated 
confidential and that the company has determined contains information that gives the 
owner or a user an opportunity to obtain a business or competitive advantage over 
another person that does not have access to the information, except through the 
company's records, or access to which by others would result in a business or 
competitive disadvantage, loss of business or other significant detriment to any person 
to whom the record belongs or pertains; and
B.  A record that contains usage or other nonpublic information regarding a customer 
of a transmission and distribution utility in the State.
The company shall provide to a legislative committee, on written request signed by the 
chairs of that committee, any information or records, including information designated 
confidential under this subsection, specified in the written request.  The information or 
records may be used only for the lawful purposes of the committee and in any action arising 
out of any investigation conducted by the committee, subject to protective order.
2.  Exceptions.  Notwithstanding subsection 1, the following are not confidential and 
are public records:
A.  Any otherwise confidential information the confidentiality of which the company 
determines to have been satisfactorily and effectively waived;
B.  Any otherwise confidential information that has already lawfully been made 
available to the public; and
C.  Impersonal, statistical or general information.
3.  Disclosure prohibited; further exceptions.  A board member, employee, agent, 
other representative of the company or other person may not knowingly divulge or disclose 
records designated confidential by this section, except that the company, in its discretion 
and in conformity with legislative freedom of access criteria in Title 1, chapter 13, 
subchapter 1-A, may make or authorize any of the following disclosures of information:
A.  If necessary in connection with processing any application for, obtaining or 
maintaining financial assistance for any person;
B.  To a financing institution or credit reporting service;
C.  Information necessary to comply with any federal or state law, regulation or rule or 
with any agreement pertaining to financial assistance;
D.  If necessary to ensure collection of any obligation in which the company has or 
may have an interest;
E.  In any litigation or proceeding in which the company has appeared, introduction for 
the record of any information obtained from records designated confidential by this 
section; and
F.  Pursuant to a subpoena, request for production of documents, warrant or other order, 
as long as the order appears to have first been served on the person to whom the 
confidential information sought pertains or belongs and as long as the order appears on 
its face or otherwise to have been issued or made lawfully.
§4011.  Annual report
By April 15th of each year, beginning no more than one year after the first meeting of 
the board, the company shall submit a report to the joint standing committee of the 
Legislature having jurisdiction over energy and utilities matters summarizing the activities 
and performance of the company in meeting its obligations to its customer-owners and its 
responsibilities under sections 4002 and 4003 during the preceding calendar year and its 
plans for the current year and subsequent 5 years.  Each annual report must describe in 
detail how the company's decisions, operations and use of low-cost financing have 
supported and will support the State's progress toward the climate action plan goals 
established in Title 38, chapter 3-A and how such financing has affected and will affect job 
creation and gross state product.
§4012.  Initial 5-year plan
Within 18 months of the date in which the company and the operations team fully take 
ownership and control of all utility facilities in the State owned or operated or held for 
future use by any investor-owned transmission and distribution utility, the company shall 
submit to the commission for approval a 5-year plan to meet initial affordability, reliability, 
decarbonization and connectivity goals.
1.  Plan minimum requirements.  At a minimum, the 5-year plan under this section 
must also include a program to:
A.  Establish lower rates for low-income residential customers;
B.  Build across the State accessible, rapid charging infrastructure for electric vehicles;
C.  Reduce make-ready and pole attachment costs for open-access fiber-optic cable in 
unserved and underserved areas of the State as defined in section 9202, subsection 5; 
and
D.  Make rapid investments in the distribution network to upgrade reliability and to 
improve capacity for interconnections of new renewable generation and storage 
facilities.
Sec. 13.  Review of laws and report.  The Public Utilities Commission shall 
examine all laws that may be affected by this Act or need to be changed as a result of this 
Act, including laws governing the Pine Tree Power Company as established under the 
Maine Revised Statutes, Title 35-A, section 4002, and laws relating to investor-owned 
transmission and distribution utilities that may be eliminated as a result of this Act.  The 
commission shall determine any modifications to laws that may be necessary or appropriate 
as a result of this Act or to effectuate the purposes of this Act and shall submit proposed 
legislation to the joint standing committee of the Legislature having jurisdiction over 
energy, utilities and technology matters no later than 6 months after the first meeting of the 
Pine Tree Power Company Board under Title 35-A, section 4002.  The joint standing 
committee of the Legislature having jurisdiction over energy, utilities and technology 
matters may report out a bill relating to the subject matter of this Act and to the 
commission's report.
Sec. 14.  Staggered terms of initial members of Pine Tree Power Company 
Board.  Notwithstanding the Maine Revised Statutes, Title 35-A, section 4002, subsection 
3, the terms of the initial members of the Pine Tree Power Company Board must be 
staggered as provided in this section.
1.  The initial designated members of the board serve as follows, determined by lot by 
those members after their selection: 2 members serve 6-year terms, 2 members serve 4-year 
terms and 2 members serve 2-year terms.
2.  The initial elected members of the board serve as follows, determined by lot by 
those members after their election: 3 members serve 6-year terms, 2 members serve 4-year 
terms and 2 members serve 2-year terms.
Sec. 15.  Code of ethics; recommendations.  On or before February 15, 2024, the 
Office of the Attorney General shall submit to the joint standing committee of the 
Legislature having jurisdiction over state and local government matters recommendations 
regarding the establishment of a code of ethics applicable to the members of the Pine Tree 
Power Company Board, as established in the Maine Revised Statutes, Title 5, section 
12004-G, subsection 36.  After receiving the recommendations, the joint standing 
committee may report out a bill related to those recommendations to the Second Regular 
Session of the 131st Legislature.
Sec. 16.  Effective date.  That section of this Act that enacts the Maine Revised 
Statutes, Title 35-A, section 1511-A takes effect January 1, 2025.
SUMMARY
This initiated bill creates the Pine Tree Power Company, a privately operated, 
nonprofit, consumer-owned utility controlled by a board the majority of the members of 
which are elected.  The company's purposes are to provide for its customer-owners in this 
State reliable, affordable electric transmission and distribution services and to help the State 
meet its climate, energy and connectivity goals in the most rapid and affordable manner 
possible.
The Pine Tree Power Company is not permitted to use general obligation bonds or tax 
dollars of the State.  The company finances itself by issuing debt against its future revenues 
to purchase the facilities of investor-owned electric transmission and distribution utilities 
in the State.  The fair market value of the acquisition is either negotiated or determined by 
a refereed process.  The Pine Tree Power Company Board contracts a nongovernmental 
team to operate the facilities, and the operations team is required to retain all workers of 
the purchased utilities.
The company is subject to property taxation and must pay property tax in the same 
manner as an investor-owned transmission and distribution utility.  The company is subject 
to ratemaking and other oversight by the Public Utilities Commission and is required to 
administer programs for net energy billing, nonwires alternatives, supply procurement and 
low-income assistance programs.
The company is governed by a board of 13 members, 7 of whom are each elected to 
represent 5 State Senate districts, as well as 6 designated expert members.  The board is 
subject to freedom of access laws and to laws preventing conflicts of interest.
The initiated bill also directs the Public Utilities Commission beginning January 1, 
2025 to find a transmission and distribution utility unfit to serve and to direct the sale of 
the utility if the utility meets certain criteria.