An Act to Clarify
Maine Legislature, Session 132, LD 1777
Committee Amendment CA_A_H756 (House)
Amends: 35-A MRSA §3209-A, 35-A MRSA §3209-B, 35-A MRSA §3209-D, 35-A MRSA §3209-E, 35-A MRSA §3209-F, 35-A MRSA §3209-G, 35-A MRSA §3209-H, 35-A MRSA §3209, 35-A MRSA §3210-G

COMMITTEE AMENDMENT" A" to H.P. 1188, L.D. 1777, "An Act to Clarify 
Tariff Rates for Nonresidential Customers Participating in Net Energy Billing with a 
Distributed Generation Resource" 
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Amend the bill by striking out the title and substituting the following: 
'An Act to Reduce Costs and Increase Customer Protections for the State's Net 
Energy Billing Programs' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec.1. 35-A MRSA §3209-A, sub-§1, ,n-1 is enacted to read: 
B-1. 
"Mechanical completion" means, with respect to a distributed generation 
resource, fully physically constructed and ready for operation. 
Sec. 2. 35-A MRSA §3209-A, sub-§2-A is enacted to read: 
2-A. Billing term length. An amendment, revision or reissuance of a net energy 
billing agreement made after June 1, 2025 may not include an end date that is later than the 
end date provided for in the agreement that is subject to the amendment, revision or 
reissuance. 
Sec. 3. 35-A MRSA §3209-A, sub-§10 is enacted to read: 
10. Applicability; mechanical completion. A distributed generation resource that is 
interconnected to the distribution grid on the grid side of a customer's meter may not be 
used for net energy billing under this section unless the distributed generation resource 
reaches mechanical completion by June 1, 2026. 
Sec. 4. 35-A MRSA §3209-A, sub-§11 is enacted to read: 
11. Distributed energy resource program. Notwithstanding any provision of this 
section to the contrary, beginning on the date the commission implements a distributed 
energy resource program pursuant to section 3209-I. the commission may not allow a 
transmission and distribution utility to enter into a net energy billing agreement with a 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT •A "to H.P .• 1188, L.D. 1777 
distributed generation resource that is interconnected to the distribution grid on the grid 
side of a customer's meter. 
Sec. 5. 35-A MRSA §3209-B, sub-§5, as amended by PL 2021, c. 659, §19, is 
further amended to read: 
5. Tariff rate; bill credits. The commission shall establish by rule tariff rates for 
customers participating in the program. The mitial tariff rate must be established no later 
thaR Deeembei· 1, 2019. 
A. The tariff rate for a customer pa1ticipating in net energy billing with a distributed 
generation resource described in this paragraph, until December 31, 2025, must equal 
the standard-offer service rate established under section 3212 that is applicable to the 
customer receiving the credit plus 75% of the effective transmission and distribution 
rate for the rate class that includes the smallest commercial customers of the investor-
owned transmission and distribution utility. The tariff rate under this paragraph applies 
to net energy billing with a distributed generation resource: 
(1) With a nameplate capacity of greater than one megawatt if: 
(a) The entity developing the distributed generation resource certifies by 
affidavit with accompanying documentation to the commission that the entity, 
before September 1, 2022, commenced on-site physical work of a significant 
nature on the distributed generation resource and the entity has made and will 
continue to make continuous on-site construction efforts to advance toward 
completion of the distributed generation resource. For the purpose of this 
paragraph, continuous on-site construction efforts include, but are not limited 
to, in the context of a solar facility, the continuous installation of racks or other 
structures to affix photovoltaic panels, collectors or solar cells to a site. The 
commission may share information contained in the affidavit submitted in 
accordance with this paragraph with a transmission and distribution utility, as 
necessary, to verify a distributed generation resource's compliance with this 
section. In administering this subsection, the commission may adopt rules 
including, but not limited to, requiring the entity that submits a sworn affidavit 
under this subparagraph to provide updated documentation to the commission 
after submission of the affidavit; or 
(b) The distributed generation resource is collocated with a net energy billing 
customer that is or net energy billing customers that are subscribed to at least 
50% of the facility's output; or 
(2) With a nameplate capacity of one megawatt or less. 
After December 31, 2025, the tariff rate must be calculated in accordance with 
paragraph A-2. 
A-1. The tariff rate for a customer participating in net energy billing under this section 
with a distributed generation resource not governed by paragraph A must: 
(1) In 2022, equal the standard-offer service rate established pursuant to section 
3212 that was applicable to the rate class of the customer receiving the credit on 
December 31, 2020 plus 75% of the effective transmission and distribution rate 
that was in effect on December 31, 2020 for the rate class that includes the smallest 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 1188, L.D. 1777 
commercial customers of the investor-owned transmission and distribution utility; 
and 
(2) Increase by 2.25% on January 1st of each subsequent year, beginning January 
1, 2023, 
A-2. Beginning January 1, 2026. the commission shall establish the tariff rate for a 
customer participating in net energy billing under this section with a distributed 
generation resource described in paragraph A in accordance with this paragraph. 
(1) For a distributed generation resource with a nameplate capacity of3 megawatts 
or more and less than 5 megawatts, the tariff rate must: 
(a) Equal the tariff rate calculated under paragraph A-1 applicable in 2026; 
and 
(b) Increase by 2.25% on January 1st of each year. beginning January 1. 2027. 
(2) For a distributed generation resource with a nameplate capacity of less than 3 
megawatts. the tariff rate must: 
(a) Equal the standard-offer service rate established pursuant to section 3212 
that was applicable to the rate class of the customer receiving the credit on 
December 31, 2024 plus 75% of the effective transmission and distribution rate 
that was in effect on December 31, 2024 for the rate class that includes the 
smallest commercial customers of the investor-owned transmission and 
distribution utility; and 
(b) Increase by 2.25% on January 1st of each year, beginning January 1, 2027. 
B. A customer participating in the program must receive for electricity delivered to 
the electric grid from a distributed generation resource in which the customer has a 
financial interest a bill credit based on the tariff rate to apply against the costs of 
electricity delivered to the customer by the investor-owned transmission and 
distribution utility. 
C. A bill credit under the program as described in paragraph B may be applied to any 
portion of a customer's electricity bill. Credits that remain unused at the end of any 
billing period may be carried forward for up to one year from the end of that billing 
period. 
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. 
The commission shall publish the tariff rates established in accordance with this subsection 
on its publicly accessible website. 
Sec. 6. 35-A MRSA §3209-B, sub-§7, as amended by PL 2023, c. 411, §3, is 
further amended to read: 
7. Applicability. The applicability of this section is limited by the requirements of 
section 3209-A, subseetioa. 7 aa.d subseetioa. 9 subsections 7, 9 and 10. 
Sec. 7. 35-A MRSA §3209-B, sub-§9 is enacted to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 1188, L.D. 1777 
9. Distributed energy resource program. Notwithstanding any provision of this 
section to the contrary. beginning on the date the commission implements a distributed 
energy resource program pursuant to section 3209-I. the commission may not allow a 
transmission and distribution utility to enter into a net energy billing agreement with a 
distributed generation resource that is interconnected to the distribution grid on the grid 
side of a customer's meter. 
Sec. 8. 35-A MRSA §3209-D, as enacted by PL 2023, c. 411, §6, is repealed. 
Sec. 9. 35-A MRSA §3209-E, sub-§1, 1A, as enacted by PL 2023, c. 411, §7, is 
amended to read: 
A. "Distributed generation resource" has the same meffil.ing as in seetion 3209 D, 
subseetion 1, pamgi-aph f,._, means an electric generating facility that uses a renewable 
fuel or technology under section 3210. subsection 2, paragraph B-3. is located in the 
service territory of a transmission and distribution utility in the State and: 
(1) Has met or is reasonably likely to meet the requirements of section 3209-A, 
subsection 7. paragraph E, as determined by the commission; or 
(2) Has a nameplate capacity of at least one megawatt and not more than 2 
megawatts and: 
(a) 
Is a member of a cluster study conducted by the transmission and 
distribution utility with which the distributed generation resource is seeking to 
interconnect; or 
(b) Is likely to receive required transmission approval from the New England 
independent system operator on or before April 30, 2024. 
Sec. 10. 35-A MRSA §3209-F is enacted to read: 
§3209-F. Net energy billing project charge for certain distributed generation projects 
1. Net energy billing project charge defined. As used in this section, "net energy 
billing project charge" means a monthly fee determined by the commission by rule in 
accordance with this section that a transmission and distribution utility must use to offset 
distribution costs associated with net energy billing anangements under sections 3209-A 
and 3209-B that would otherwise be paid by ratepayers. as determined by the commission. 
2. Net energy billing project charge; applicability. Except as provided in subsection 
5, the commission shall require a transmission and distribution utility to assess each 
distributed generation resource participating in net energy billing with a shared financial 
interest customer in accordance with section 3209-A, subsection 3. The commission shall 
adopt mles to dete1mine the net energy billing project charges applicable to distributed 
generation resources described in subsection 3 and establish a process by which a 
transmission and distribution utility must apply net energy billing project charges against 
costs associated with net energy billing. 
3. Initial net energy billing project charge. Beginning January 1, 2026, the initial 
monthly net energy billing project charge established by the commission must be: 
A. For a distributed generation resource with a nameplate capacity of 3 megawatts or 
more and less than 5 megawatts, $6,00 multiplied by the nameplate capacity of the 
distributed generation resource in kilowatts; 
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COMMITTEE AMENDMENT" A• to H.P. 1188, L.D. 1777 
B. For a distributed generation resource with a nameplate capacity of one megawatt or 
more and less than 3 megawatts, $2. 80 multiplied by the nameplate capacity of the 
distributed generation resource in kilowatts: and 
C. For a distributed generation resource with a nameplate capacity of less than one 
megawatt, zero. 
4. Adiustment of net energy billing proiect charge; compensation. The commission 
shall periodically by rule increase the initial net energy billing project charge to account 
for increases in transmission and distribution rates. Compensation to a distributed 
generation resource related to transmission and distribution rate credits may not increase 
by more than 2.25% per year. 
5. Exceptions. A distributed generation resource is exempt from the net energy billing 
project charge established in this section if the distributed generation resource demonstrates 
in a manner satisfactory to the c01mnission that the distributed generation resource is: 
A. Wholly owned by the customer or customers receiving the net energy billing credits 
associated with the output of the distributed generation resource; or 
B. Wholly owned by a cooperative corporation organized under Title 13, chapter 85. 
6. Rules. The commission shall adopt rules to implement this section. Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 11. 35-A MRSA §3209-G is enacted to read: 
§3209-G. Net energy billing cost rate year adjustment 
1. Adiustment of net energy billing cost rate year. The commission shall require a 
transmission and distribution utility to reconcile costs associated with net energy billing 
under sections 3209-A and 3209-B, as determined by the commission, in a rate year to 
begin on January 1st of each year, starting in 2026. 
2, Rules. The commission may adopt rules to implement this section. Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 12. 35-A MRSA §3209-H is enacted to read: 
§3209-H. Net energy billing project procurement 
1, Definitions, As used in this section, the following terms have the following 
meanings. 
A. "Distributed generation resource" has the same meaning as in section 3209-A, 
subsection 1, paragraph B. 
B. "Eligible resource" means a distributed generation resource: 
(l) That reaches commercial operation before November L 2025; 
(2) That is participating in net energy billing pursuant to section 3209-A or 3209-B; 
and 
(3) For which 75% or less of the bill credits associated with the distributed 
generation resource are allocated to a customer of or subscriber to the resource. 
COMMITTEE AMENDMENT 
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COMMITTEE AlvIBNDJvfENT "A" to H.P. 1188, L.D. 1777 
2. Competitive procurement. The commission shall direct investor-owned 
transmission and distribution utilities to enter into one or more contracts for energy or 
renewable energy credits or both from eligible resources in accordance with this section, 
The commission may not require a distributed generation resource to contract for the sale 
of energy or renewable energy credits under this section. 
A. By November 1. 2025, the commission shall initiate a competitive solicitation for 
contracts under this section for energy or renewable energy credits or both in an amount 
dete1mined by the commission. 
B. The commission may initiate additional competitive solicitations in its sole 
discretion after consultation with the Governor's Energy Office. 
C. The commission may not award a contract to an eligible resource participating in 
net energy billing pursuant to section 3209-A at a rate that exceeds the tariff rate 
calculated under section 3209-B, subsection 5, paragraph A-1 applicable on November 
1. 2025 to medium commercial customers as defined in section 3106, subsection 1, 
paragraph B or industrial customers in the transmission and distribution service 
territory in which the eligible resource is located. 
D. The commission may not award a contract to an eligible resource participating in 
net energy billing pursuant to section 3209-B at a rate that exceeds 70% of the tariff 
rate calculated under section 3209-B, subsection 5, paragraph A-1 applicable on 
November 1, 2025 to medium commercial customers as defmed in section 3106, 
subsection 1, paragraph B or industrial customers in the transmission and distribution 
service tenitory in which the eligible resource is located. 
3. Contract terms. A contract entered into pursuant to this section must be for a term 
of no more than 20 years or the remainder of the eligible resource's net energy billing 
agreement with a transmission and distribution utility, whichever is shorter, unless the 
commission fmds a contract for a longer term to be prudent. 
4. Rules. The commission may adopt rules to implement this section. Rules adopted in 
accordance with this subsection are routine technical rules as defmed in Title 5, chapter 
375, subchapter 2-A. 
Sec. 13. 35-A MRSA §3209-1 is enacted to read: 
§3209-1. Distributed energy resource program 
1. Distributed energy resource defined. As used in this section, "distributed energy 
resource" means an electric generating facility that uses a renewable fuel or technology 
under section 3210, subsection 2, paragraph B-3. is located in the service tenit01y of a 
transmission and distribution utility in the State and is interconnected to the distribution 
grid on the grid side of a customer's meter. 
2. Program design; implementation. The Governor's Energy Office shall design a 
program or programs to encourage the development of distributed energy resources in the 
State and submit the proposed program or programs to the commission. If the commission 
finds that a program or programs proposed by the office provides benefits to ratepayers in 
the State in excess of the costs to ratepayers, the commission shall by rule implement the 
program or programs. 
COMMITTEE AMENDMENT 
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C011MJTTEE AMENDMENT~ "to H.P. 1188, L.D. 1777 
3. Program implementation; net energy billing. After the commission implements 
the program or programs under subsection 2, the commission may not permit a 
transmission and distribution utility to enter into a net energy billing agreement with a 
distributed energy resource under section 3209-A or 3209-B. 
4. Rules. The commission may adopt rnles to implement this section. Rules adopted or 
amended under this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 14. 35-A MRSA §3210-G, sub-§3, as amended by PL 2023, c, 411, §8, is 
further amended to read: 
3, Report. No later than March 31, 2023 and biennially thereafter, the commission 
shall submit a report regarding the status of contracts for Class IA resources under this 
section and the status of contracts for energy or renewable energy credits from distributed 
generation resources under section 3209 D 3209-H to the joint standing committee of the 
Legislature having jurisdiction over utilities and energy matters. The report must include, 
but is not limited to, a description of Class IA resources participating in competitive 
solicitations, information about the resources selected for contracts and the selection 
process, the benefits and costs of the contracts and recommendations about how to further 
stimulate investment in Class IA resources or achieve ratepayer benefits from Class IA 
resources. The report may include infmmation about benefits and costs of the contracts to 
the State's economy, environmental quality or electricity consumers over both the short and 
long terms. Any analysis of the benefits or costs of the contracts must be based on a forecast 
of all avoided costs resulting from the contracts that is transparent and balanced over the 
longterm. 
Sec. 15. Distributed energy resource program; development. By September 
30, 2026 and in accordance with the Maine Revised Statutes, Title 35-A, section 3209-I, 
subsection 2, the Governor's Energy Office, referred to in this section as "the office," shall 
design and submit to the Public Utilities Commission, referred to in this section as "the 
commission," a proposed distributed energy resource program or programs to succeed the 
net energy billing programs established in Title 35-A, sections 3209-A and 3209-B for 
distributed energy resources. For the purposes of this section, "distributed energy resource" 
has the same meaning as in Title 35-A, section 3209-I, subsection 1. 
In designing the program or programs, the office shall consider: 
1. The marginal benefit to ratepayers in the State of the time value of generation and 
the location of generation; 
2, Reasonable compensation rates specific to a distributed energy resource's size and 
generation type; 
3. The development and use of a compensation model based on the value of distributed 
energy resources; 
4. Opportunities for a load reducer program for commercial customers; 
5. Incentivizing energy storage that provides benefits to ratepayers in the State; and 
6. Necessary changes to utility rate structure, billing systems, data collection or 
metering to implement the program. 
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COM.M.J.ITEE AMENDMENT "A" to H.P. 1188, L.D. 1777 
The office may consider other factors the office determines appropriate and shall solicit 
public input prior to the submission of a program design to the commission. 
To support the office's development of the program, the office may request funds from 
the commission for the office's administrative costs, which may include, but are not limited 
to, costs associated with hiring consultants and office personnel and contracting for 
technical analysis in the design of the program or programs. Notwithstanding Title 35-A, 
section 117, if the office requests funding in accordance with this section, the commission 
may provide funding, to the extent available, from the Public Utilities Commission 
Reimbursement Fund under Title 3 5-A, section 117. If the Public Utilities Commission 
Reimbursement Fund does not have sufficient funding, notwithstanding Title 3 5-A, section 
116, subsection 4, the commission may provide funding in accordance with this section 
from the Public Utilities Commission Regulatory Fund. 
In accordance with Title 35-A, section 3209-I, the commission shall approve 01· reject 
the proposed program or programs submitted by the office pursuant to this section as 
expeditiously as possible, but no later than 120 calendar days after the commission receives 
the design from the office unless otherwise requested by the office. If the commission finds 
that the program provides benefits to ratepayers in the State in excess of the costs to 
ratepayers, the commission shall implement the program by rule. 
Sec. 16. Net energy billing; consumer protections. In accordance with the 
Maine Revised Statutes, Title 35-A, section 3209-A, subsection 5, paragraph E, by 
November 1, 2025, the Public Utilities Commission shall initiate rulemaking to establish 
consumer protection standards for customers participating in net energy billing pursuant to 
Title 35-A, section 3209-A. The rules must: 
1. Require that a distributed generation resource providing service to a customer 
participating in a net energy billing arrangement based upon a shared financial interest in 
the distributed generation resource establish a subscription size for a customer that is based 
on historical customer usage, while taking into account anticipated increases in usage, and 
require a project sponsor to adjust the customer's subscription size as needed to match 
changes in usage; 
2. Prohibit project sponsors or operators of distributed generation resources from 
retaining customer payment for unused kilowatt-hour credits that have expired; 
3. For a customer participating in net energy billing, require a transmission and 
distribution utility to provide the relevant project sponsor or owner of a distributed 
generation resource with the customer's usage and billing information, including net energy 
billing data needed to administer a customer's net energy billing arrangement; and 
4. Prohibit residential customers from simultaneously participating in more than one 
net energy billing arrangement pursuant to Title 35-A, section 3209-A, subsection 3. 
Notwithstanding any provision of Title 35-A, section 3209-A to the contrary, rules 
adopted by the commission pursuant to this section are routine technical rules as defined 
in Title 5, chapter 375, subchapter 2-A.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 'A" to H.P. 1188, L.D. 1777 
SUMMARY 
This amendment, which is the majority report of the committee, replaces the bill and 
changes the title. The amendment does the following. 
1. It prohibits a distributed generation resource that is interconnected to the distribution 
grid on the grid side of a customer's meter from being used for the kilowatt-hour credit and 
commercial and institutional net energy billing programs unless the distributed generation 
resource reaches mechanical completion by June 1, 2026. 
2. It requires the Governor's Energy Office to design and submit to the Public Utilities 
Commission a proposed distributed energy resource program or programs to succeed the 
net energy billing programs for front-of-the-meter distributed generation resources. 
3. For both the kilowatt-hour credit and commercial and institutional net energy billing 
programs, it requires the commission to prohibit a transmission and distribution utility from 
entering into a net energy billing agreement with a distributed generation resource that is 
interconnected to the distribution grid on the grid side of a customer's meter beginning on 
the date the commission implements a distributed energy resource program to succeed the 
net energy billing programs for front-of-the-meter distributed generation resources 
pursuant to the Maine Revised Statutes, Title 35-A, section 3209-1. 
4. It directs the commission to require transmission and distribution utilities to 
reconcile costs associated with net energy billing in a rate year beginning on January 1, 
2026. 
5. It establishes an end date for the tariff rate received by certain distributed generation 
resources participating in the commercial and institutional net energy billing program 
effective January 1, 2026 and establishes new tariff rates effective January 1, 2026 that 
apply to certain distributed generation resources participating in the commercial and 
institutional net energy billing program. 
6. It repeals a section of law requiring the commission to conduct competitive 
solicitations for the procurement of energy or renewable energy credits from distributed 
generation resources and requires instead that the commission conduct competitive 
solicitations for the procurement of energy or renewable energy credits or both from 
distributed generation resources participating in net energy billing for which 75% or less 
of the bill credits associated with the resource are not allocated to a customer of or 
subscriber to the resource. 
7. It requires certain distributed generation resources participating in the kilowatt-hour 
credit net energy billing program to pay a monthly fee dete1mined by the commission that 
must be used to offset distribution costs associated with net energy billing arrangements 
that would otherwise be paid by ratepayers. 
8. It requires the commission to adopt rules establishing consumer protections related 
to the kilowatt-hour credit net energy billing program. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/06/25 L-RL-
LD 1777 
LR 2335(02) 
An Act to Clarify Tariff Rates for Nonresidential Customers Participating in Net Energy Billing with 
a Distributed Generation Resource 
Fi~cal Note for ~~II as Amended by Committee Amendment ft, {f-,{---7~ ~) 
Committee: Energy, Utilities and Technology 
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Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - Other Special Revenue Funds 
Potential current biennium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
·. 
Provisions in this bill authorize the Govemor's Energy Office to request reimbursement from the Public Utilities 
Connnission (PUC) Other Special Revenue Funds accounts for the costs associated with the development of the 
distributed energy resource program. Depending on the timing and magnitude of these requests, the PUC may need to 
assess additional amounts on regulated utilities to maintain adequate fund balances. If such assessments are necessary, 
they will result in increased Other Special Revenue Funds revenue and co1Tesponding allocations to authorize the 
reimbursement expenditures. 
LR2335(02) - Fiscal Note - Page 1 of I