An Act to Enhance Electric Utility Performance-based Ratemaking
Maine Legislature, Session 131, LD 2172
Committee Amendment CA_A_H852 (House)
Amends: 35-A MRSA §3197

COMMITTEE AMENDMENT " /\ " to H.P. 1391, L.D, 2172, "An Act to Enhance
Electric Utility Performance-based Ratemaking"
Amend the bill by striking out the title and substituting the following:
'An Act to Enhance Electric Utility Regulation Based on Performance'
Amend the bill by striking out all of the emergency preamble,
Amend the bill by striking out everything after the enacting clause and inserting the
following;
'See. 1. 3S-A MRSA §1324 is enacted to read:
§1324. Performance-based metrics; rate adjustment mechanisms
Notwithstanding any provision of this Title to the contrary, the commission may
establish performance-based metrics and rate adjustment mechanisms for a public utility in
any proceeding,
Sec. 2. 35-AMRSA §3196 is enacted to read:
§3196. Examination of regulatory tools based on performance
1. Commission proceedine. Beginning October 1, 2024 and every 3 years thereafter.
the commission shall mj^ a proceeding to examine regulatory tools based _on
Derformance that the commission may develop and imnlement for an investor-owned
transmission and distribution utility,
A. In its examination _in a proceeding under this subsection, the commission shall;
d) In addition to the minimum service standards established pursuant to section
301. subsection 1-A. consider regulatory tools based on performance that align a
utility's performance with any standards and metrics developed in accordance with
subsections; and
(2) Review and evaluate regulations based on performance used in other states.
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT "^ " to H.P, 1391, L.D. 2172
B, In conducting a proceedine under this subsection, the commission shall first, in
accordance with subsection 2, establish goals for investor-owned transmission and
distribution utility performance and then evaluate motions for the_development of
standards and metrics in accordance with subsection 3 that may be used to assess a
transmission and distribution utility's performance toward achieving the goals,
2. Transmission and distribution utility eoals. The commission shall establish goals
for investor-owned transmission and distribution utility performance that are consistent
with the objectives of the State's climate action plan adopted pursuant to Title 38. section
577 and address the elements of a utility's integrated grid planning filing pursuant to section
31_47, subsection A, When establishing goals, the commission shall also consider, at a
mmimum^goals that would benefit ratepayers and;
A. Promote efficient and cost-effective transmission and distribution utility operations;
B. Increase planning and pretmration for extreme weather events and climate hazards;
C, Promote cost-effective and comprehensive responses to outages;
D, Increase affordability and customer enwowerment and satisfaction;
E. Support achievement of the State's_goals for increasing consumption of electi'icity
from renewable resources in section 3210, subsection 1 -A;
F, Advance the State's greenhouse eas emissions reduction eoals established in Title
38.section576-A;and
G. Advance beneficial electrification in accordance with section 3 804,
3.Standards and metrics; considerations. The commission shall evaluate options for
the develomnent of standards and metrics to be used in rate cases and other proceedings,
as appropriate, involving an investor-owned transmission and distribution utility to assess
the utility's performance toward achieving goals established in accordance with subsection
1
4. Stakeholder input. The commission shall hold stakeholder workshops to receive
stakeholder input regarding the examination of regulatory tools based on performance in
accordance with subsection 1, goals established by the commission in accordance with
subsection 2 and emerging regulatory mechanisms that may be implemented by the
commission in accordance with section 3197,
5. Consumer-owned transmission and distribution utilities. Nothing in this section
prohibits _the cQmmission from examining regulatoiy tools for consumer-owned
transmission and distribution utilities based on performance,
6. Renort, Beginning January 1. 2026 and every 3 years thereafter, the commission
shall provide a report to the joint standing committee of the Legislature having jurisdiction
6 over utility matters summarizing the most recent woceedine initiated under this section and
including;
A. A description of actions undertaken by the commission as aresult of the proceeding;
B. Information regarding the use of regulatory tools based on performance, includine
an evaluation, to the extent practicable, of the effectiveness of regulatory tools based
on performance that the commission has developed and implemented or intends to
develop and implement;
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " A " to H.P. 1391, L.D, 2172
C, A review of evidence regarding the use of regulatory tools based on performance
from other states, to the extent that such evidence is available; and
D, Any recommended legislation.
After reviewing the report. the committee may report out a bill to implement the
recommendations contained in the repprt.
Sec. 3. 35-A MRSA §3197 is enacted to read:
§3197. Emereine reeulatory mechanisms
The commission shall implement emerging regulatory mechanisms for transmission
and distribution utilities when it finds that doing so would better align transmission and
distributioiLutility performance wjth_ state policies and goals when compared to other forms
of regulation,
Sec. 4. Public Utilities Commission; regulatory policy group. The Public
Utilities Commission shall evaluate the potential creation of a regulatory policy group
within the organizational structure of the commission that is dedicated to considering
policy matters that will inform the commission's regulatory work. By January 17,2025, the
commission shall submit a report to the joint standing committee of the Legislature having
jurisdiction over utility matters that includes recommendations for the creation of a
regulatory policy group, The report must include recommendations regarding the duties of
the regulatory policy group, the number of new positions needed to perform those duties,
how the regulatory policy group will be organized and any recommended legislation. After
reviewing the report, the committee may report out a bill related to the report to the 132nd
Legislature in 2025,'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively,
SUMMARY
This amendment replaces the bill, changes the title, removes the emergency preamble
and clause and does the following.
1. Beginning October 1, 2024 and every 3 years thereafter, it requires the Public
Utilities Commission to initiate a proceeding to examine regulatory tools based on
performance that the commission may develop and implement for an investor-owned
transmission and distribution utility, In conducting the proceeding, the commission must
first establish goals for transmission and distribution utility performance and then evaluate
options for the development of standards and metrics that may be used in rate cases and
other proceedings to assess a transmission and distribution utility s performance toward
5 achieving the goals.
2, It requires the commission to hold stakeholder workshops to receive stakeholder
input regarding its examination of regulatory tools based on performance, goals the
commission establishes in connection with the proceedings and emerging regulatory
mechanisms that may be implemented by the commission,
3. Beginning January 1, 2026 and every 3 years thereafter, it requires the commission
to provide to the joint standing committee of the Legislature having jurisdiction over utility
matters a report summarizing the most recent proceeding, including a description of actions
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " A-" to H,P. 1391, L.D. 2172
ROS
undertaken by the commission as a result of the proceeding; information regarding the use
of regulatory tools based on performance, including an evaluation, to the extent practicable,
of the effectiveness of regulatory tools based on performance that the commission has
developed and implemented or intends to develop and implement; a review of evidence
regarding the use of regulatory tools based on performance from other states, to the extent
that such evidence is available; and any recommended legislation.
4, It requu-es the commission to implement emerging regulatory mechanisms for
transmission and distribution utilities when it finds that doing so would better align
transmission and distribution utility performance with state policies and goals when
compared to other forms of regulation.
5. It directs the commission to evaluate the creation of a regulatory policy group within
the organizational structure of the commission, By January 17, 2025, the commission must
submit a report to the joint standing committee of the Legislature having jurisdiction over
utility matters that includes recommendations for the creation of a regulatory policy group ,
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved; 03/18/24 ^K?ct
LD 2172 LR 2755(02)
An Act to Enhance Electric Utility Performance-based Ratemaking
Fiscal Note for Bill as Amended by Committee Amendment "^' ^ |4" 8^2-
Committee: Energy, Utilities and Technology
Fiscal Note Required: Yes
Fiscal Note
Minor cost increase - Other Special Revenue Funds
Fiscal Detail and Notes
Any additional costs to the Public Utilities Commission to implement the provisions of this bill are expected to be
minor and can be absorbed within existing budgeted resources.
LR2755(02) - Fiscal Note - Page 1 of 1