An Act to Require Maine Transmission and Distribution Utility
Maine Legislature, Session 132, LD 2038
Sponsors: KESSLER
Amends: 35-A MRSA §2112

Legislative Document
No. 2038
H.P. 1368
House of Representatives, December 5, 2025
An Act to Require Maine Transmission and Distribution Utility 
Participation in a Regional Transmission Organization
(EMERGENCY)
Submitted by the Office of the Public Advocate pursuant to Joint Rule 203.
Received by the Clerk of the House on December 3, 2025.  Referred to the Committee on 
Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative KESSLER of South Portland.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, there is an immediate need to ensure that electricity rates charged to Maine 
electricity ratepayers for transmission and distribution service in Maine are just and 
reasonable; and
Whereas, the United States Courts of Appeals for the Sixth Circuit and Ninth Circuit 
have recently issued decisions determining that electric utilities in states that require 
membership in a regional transmission organization are not eligible to recover a special 
bonus return on equity authorized under federal law for electric utilities that voluntarily 
join a regional transmission organization; and
Whereas, the timeline for updating electricity rates by New England electric utility 
owners, including those located in Maine, commences on June 15th of each year; and
Whereas, delay in the implementation of this legislation would cause significant harm 
to Maine electricity ratepayers by allowing Maine electric utilities to continue to collect a 
special bonus return on equity on their transmission assets, unnecessarily inflating 
electricity rates paid by Maine electricity ratepayers; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §2112 is enacted to read:
§2112.  Mandatory participation in regional transmission organization
1. Regional transmission organization; definition.  For the purposes of this section, 
“regional transmission organization” means an independent entity authorized by the 
Federal Energy Regulatory Commission to operate the regional transmission system and 
administer wholesale electricity markets in accordance with federal law. 
2. Participation mandatory.  Except as provided in subsection 3, a transmission and 
distribution utility may not own or control a transmission and distribution plant located in 
the State unless the transmission and distribution utility participates in a regional 
transmission organization.
3. Exceptions.  The provisions of this section do not apply to:
A.  A consumer-owned transmission and distribution utility as defined in section 3501, 
subsection 1; or
B.  A transmission and distribution utility that owns or controls a transmission and 
distribution plant located in an area of this State in which the retail electricity market 
is administered by the independent system administrator for northern Maine.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill makes it mandatory for transmission and distribution utilities to participate in 
a regional transmission organization. The bill provides an exception for consumer-owned 
utilities and for utilities located in an area of the State in which the retail electricity market 
is administered by the independent system administrator for northern Maine.