An Act to Provide
Maine Legislature, Session 132, LD 1936
Committee Amendment CA_A_S495 (Senate)
Amends: 35-A MRSA §3209, 35-A MRSA §3210, 35-A MRSA §3483

COMMITTEE AMENDMENT "A~» to S.P, 754, L,D, 1936, "An Act to Provide
Greater Equity in and Reduce Costs Related to the State's Net Energy Billing Program"
Amend the bill by striking out the title and substituting the following;
*An Act Regarding the Allocation of Net Energy Billing Costs and Long-term
Contract Costs and Benefits'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
"See. 1. 35-A MRSA §3209, sub-§5, ^B, as enacted by PL 2025, c. 391, §2, is
amended to read:
B. Notwithstanding section 3209 C, subseotioti 2, paragraph B and-seotion 3210 P,
subseet-ion 3, allocates Allocates the combined post-restructuring stranded costs, as
determined by the commission, for investor-owned transmission and distribution
utilities in the State to each customer class group described in paragraph A, based on
each group's pro rata share of statewide post-restructuring stranded costs based on total
retail kilowatt-hour energy sales to those customers;
See. 2. 35-A MRSA §3209, sub-§6, as enacted by PL 2025,c. 391, §3, is amended
to read;
6. Post-restructuring stranded cost allocation; rate design. For post-restructuring
stranded cost allocations and rate designs applicable on or after July 1, 2028, the
commission shall by order establish such cost allocations and rate designs applicable for
the following 3-year period in accordance with section 3209-C. subsection 2, paragraph C
and section 3209-F. subsection 3» subject to annual and other necessary reconciliations, and
ensure the promotion of beneficial electrification in every customer class consistent with
section 3 804.
Sec. 3. 35-A MR8A §3209-C, sub-§2, ^B, as enacted by PL 2023, c. 411, §5, is
amended to read;
COMMITTEE AMENDMENT
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COMMITTEE AMENDMENT"^ " to S.P. 754, L,D. W^^^S}
B. Tho commiooion shall alloooto to each investor owned transmission and distribution
utility its pro rata share of net oncrgy-billing-oosts,- If the commission finds that a benefit
of distributed generation under net energy billing provides a monetized net financial
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 be applied to offset the net energy billing costs allocated under this paragraph
subsection. The allocation must bo based on each utility's total retail •fcilowatt-hoyr
onorgy sales to-mtepayers that pay net energy billing costs. "The commission may
determine the means to bo. used for the allocation required under this subsection, and
those means may include the direct transfer of--funds between ti'an5mission-and
distribution utilities.
Sec. 4. 35-A MRSA §3209"C, sub-§2, ^C is enacted to read:
C. For post-restructurine stranded cost allocations and rate designs applicable on or
after July 1. 2028. the commission shall allocate net energy billing costs by aggregating
similar classes of customers as determined by the commission across investor-owned
transmission and distribution utilities and ensure thafcosts and benefits are eauitablv
distributed,
See. 5. 35-A MRSA §3210"F, as enacted by PL 2013, c.454, §2, is amended to
read;
§3210-F. Allocation of costs and benefits of long-term energy contracts
The commission shall ensure that all eligible costs and benefits associated with a long-
term energy contract are allocated to ratepayers In accordance with'this section,
1. Definitions. As used in this section, unless the context otherwise indicates, the
following terms have the following meanings.
A. "Eligible costs and benefits" means the net amount of all costs and direct financial
benefits associated with long-term energy contracts entered into by investor-owned
transmission and distribution utilities, including but not limited to any effects on a
' utility's cost of capital as a result of these contracts.
B, "Long-term energy contract" means a contract with an investor-owned transmission
and distribution utility entered into under section 3210-C Wi section 3604 or section
10313. subsection 7.
2. Eligible costs and benefits. The commission shall determine the eligible costs and
3 benefits of a long-term energy contract annually.
3. Allocation of eligible costs and benefits. Tho commission-shall-annually allocate
to ouoh investor owned^ransmtesien and distribution utility'-itspi'o-ruta-share of
costs and benefits as determined under subscotion 2. The allocation must be based on each
utility's total retail kilowatthour energy sales to ratepayers that receive the benefits and
pay the costs-of long-temi-energy-eentmota. The commission may-determme-the means to
be used for the allocation required under this section, whioh may include the direct transfer
ef-funda behveen investor owned transmission and distribution-utilities,' For oost-
restmcturine stranded cost allocations and rate designs applicable on or after July 1.2028.
the commission shall allocate eligible costs and benefits by aeereeatine similar classes of
COMMITTEE AMENDMENT
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COMMITTEE AMENDMENT " ^" to S.P. 754, L.D. 1936 (. ^" I
I customers as determined by the commission across investor-owned transmission and
distribution utilities and ensure that costs and benefits are distributed eauitablv.
4. Rules. The commission may adopt rules to implement this section, Rules adopted
pursuant to this subsection are routine technical rules as defined by Title 5, chapter 375,
subchapter 2"A.
Sec. 6. 35-A MRSA §3483, sub-§3, as enacted by PL 2019, c. 478, Pt. B, §1, is
amended to read:
3. Standard buyer cost allocation. The commission and each standard buyer
designated pursuant to subsection 1 shall implement a transparent mechanism to track and
recover or distribute the eligible costs and benefits under this subsection incurred by
procuring distributed generation resources pursuant to this chapter. These eligible costs
and benefits must be reviewed by the commission annually and allocated to and recovered
from customers of the investor-owned transmission and distribution utility in whose
territory the distributed generation resource is located through a process established by rule
of the commission. The process established by the commission must be similar to the
allocation of costs and benefits of long-term efiei^ contracts in section 3210-F. Eligible
costs and benefits include:
A. Incremental costs of serving as the standard buyer;
B. All payments or bill credits to customers, subscribers and project sponsors under
each procurement pursuant to sections 3485 and 3486; and
C, All revenue from sale of the output of distributed generation resources procured
pursuant to this chapter.'
Amend the bill by relettermg or renumbering any nonconsecutive Part letter or section
number to read consecutively.
• SUMMARY
This amendment replaces the bill and changes the title. It removes the requirement that
the Public Utilities Commission allocate to each investor-owned transmission and
distribution utility its pro rata share of certain costs and instead requires the commission,
for post-restfucturing stranded cost allocations and rate designs applicable on or after July
1, 2028, to allocate net energy billing costs and eligible costs and benefits associated with
long-term contracts by aggregating similar classes of customers across investor-owned
transmission and distribution utilities and ensuring that costs and benefits are distributed
equitably, The amendment adds a cross-reference regarding beneficial electrification, and
it also amends the provision of law governing long-term contract costs to include costs
associated with contracts entered Into as a result of procurements by the Department of
Energy Resources.
FISCAL NOTE REQUIRED
, (See attached)
Page3-132LR2381(02)
COMMITTEE AMENDMENT
Approved; 01/27/26 I^KL
LD 1936 LR 2381(02)
An Act to Provide Greater Equity in and Reduce Costs Related to the State's Net Energy Billing
Program
Fiscal Note for Bill as Amended by Committee Amendment "A" /'<. i
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 or the Department of Energy Resources to adopt the change
in this bill are expected to be minor and can be absorbed within existing budgeted resources.
LR2381(02) - Fiscal Note - Page 1 of 1