An Act to Lower Electric Rates for Maine Ratepayers by Requiring
Maine Legislature, Session 132, LD 1223
Committee: Energy, Utilities and Technology
Sponsors: FOSTER
Amends: 35-A MRSA §3149, 35-A MRSA §3209-A, 35-A MRSA §3209-B, 35-A MRSA §3212, 35-A MRSA §3214, 36 MRSA §656, 36 MRSA §1752

Legislative Document
No. 1223
H.P. 798
House of Representatives, March 25, 2025
An Act to Lower Electric Rates for Maine Ratepayers by Requiring 
the Payment of Certain Costs from the General Fund
Reference to the Committee on Energy, Utilities and Technology suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative FOSTER of Dexter.
Cosponsored by Representatives: FAULKINGHAM of Winter Harbor, PAUL of Winterport, 
WADSWORTH of Hiram, Senator: GROHOSKI of Hancock.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  35-A MRSA §3149 is enacted to read:
§3149.  Procurement and arrearage management program funding
1.  Procurement costs to be paid from General Fund.  Notwithstanding any 
provision of this Title to the contrary, if the commission requires a transmission and 
distribution utility to purchase or otherwise contract for energy, renewable energy credits, 
energy storage systems or transmission infrastructure pursuant to applicable law, costs 
incurred by a transmission and distribution utility for the purchase or contract may not be 
incorporated into rates, and costs associated with the purchase or procurement must be paid 
from the General Fund. The commission may not require a transmission and distribution 
utility to purchase or otherwise contract for energy, renewable energy credits, energy 
storage systems or transmission infrastructure unless the commission has submitted 
legislation to request funding to be paid into the Energy Procurement and Arrearage 
Management Program Cost Fund established in subsection 2 and adequate funding is 
available within the fund.
2.  Energy Procurement and Arrearage Management Program Cost Fund.  The 
Energy Procurement and Arrearage Management Program Cost Fund is established within 
the commission as a nonlapsing fund for the purposes of paying costs incurred by a 
transmission and distribution utility to purchase or otherwise contract for energy, 
renewable energy credits, energy storage systems or transmission infrastructure pursuant 
to applicable law as described in subsection 1 and costs incurred by a transmission and 
distribution utility associated with an arrearage management program pursuant to section 
3214, subsection 2-A. The commission may receive and deposit in the fund funds from the 
General Fund.
Sec. 2.  35-A MRSA §3209-A, sub-§1, ¶B-1 is enacted to read:
B-1.  "Kilowatt-hour credit program cost" means:
(1)  Transmission and distribution costs that would otherwise be paid by a customer 
through the volumetric charge on the customer's electricity bill that are not received 
by a transmission and distribution utility due to application of kilowatt-hour credits 
to the customer's electricity bill; and
(2)  Costs incurred by a transmission and distribution utility for the administration 
of net energy billing arrangements.
Sec. 3.  35-A MRSA §3209-A, sub-§10 is enacted to read:
10.  Kilowatt-hour credit program costs.  After January 1, 2027, kilowatt-hour credit 
program costs may not be included or incorporated in the operating expenses of a 
transmission and distribution utility to be recovered in rates and must be paid from the 
General Fund. The commission shall submit legislation to request funding to be paid into 
the Net Energy Billing Cost Stabilization Fund established in section 3209-B, subsection 
to ensure that adequate funding is available to pay kilowatt-hour credit program costs.
The commission shall adopt rules to establish a process by which kilowatt-hour credit 
program costs are distributed to transmission and distribution utilities using funds from the 
Net Energy Billing Cost Stabilization Fund. The rules must require a transmission and 
distribution utility to provide to the commission, at least biennially, an estimate of kilowatt-
hour credit program costs for the following year. The commission rules must establish a 
schedule for the commission's payment of kilowatt-hour program costs and a reconciliation 
process by which any overpayments are returned by a transmission and distribution utility 
to the Net Energy Billing Cost Stabilization Fund. Notwithstanding any provision of this 
section to the contrary, rules adopted by the commission pursuant to this subsection are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.
Sec. 4.  35-A MRSA §3209-B, sub-§1, ¶B-1 is enacted to read:
B-1.  "Commercial and institutional program cost" means:
(1)  The dollar amount of bill credits paid to a customer based on the tariff rates 
established under subsection 5; and
(2)  Costs incurred by a transmission and distribution utility for the administration 
of the program.
Sec. 5.  35-A MRSA §3209-B, sub-§1, ¶C-1 is enacted to read:
C-1.  "Monetized benefit" means revenue received by a transmission and distribution 
utility that is generated by the sale of:
(1)  Electricity produced by a distributed generation resource participating in the 
program; and
(2)  Capacity rights associated with a distributed generation resource participating 
in the program.
Sec. 6.  35-A MRSA §3209-B, sub-§9 is enacted to read:
9.  Commercial and institutional program costs.  After January 1, 2027, commercial 
and institutional program costs may not be included or incorporated in the operating 
expenses of a transmission and distribution utility to be recovered in rates and must be paid 
from the General Fund. The commission shall submit legislation to request funding to be 
paid into the Net Energy Billing Cost Stabilization Fund established in subsection 10 to 
ensure that adequate funding is available to pay commercial and institutional program 
costs.
The commission shall adopt rules to establish a process by which commercial and 
institutional program costs, less monetized benefits, are distributed to transmission and 
distribution utilities and distributed generation resources, as applicable, using funds from 
the Net Energy Billing Cost Stabilization Fund. The rules must require a transmission and 
distribution utility to provide, at least biennially, to the commission an estimate of 
commercial and institutional program costs for the following year, as well as an estimate 
of monetized benefits. The commission rules must establish a schedule for the 
commission's payment of commercial and institutional program costs and a reconciliation 
process by which any overpayments are returned by a transmission and distribution utility 
to the Net Energy Billing Cost Stabilization Fund. Rules adopted by the commission 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2‑A.
Sec. 7.  35-A MRSA §3209-B, sub-§10 is enacted to read:
10.  Net Energy Billing Cost Stabilization Fund.  The Net Energy Billing Cost 
Stabilization Fund is established within the commission as a nonlapsing fund for the 
purposes of paying kilowatt-hour credit program costs in accordance with section 3209-A, 
subsection 10 and commercial and institutional program costs, less monetized benefits, as 
described in subsection 9. The commission may receive and deposit in the fund funds from 
the General Fund and any overpayments returned by transmission and distribution utilities 
in accordance with rules adopted by the commission.
Sec. 8.  35-A MRSA §3212, sub-§1, ¶C-1 is enacted to read:
C-1.  Implementation of time-of-use rates for residential and small commercial 
customers located in the service area of a transmission and distribution utility with the 
necessary electric billing and metering services to accommodate time-of-use rates;
Sec. 9.  35-A MRSA §3212, sub-§7 is enacted to read:
7.  Time-of-use rates; electric billing and metering service necessary.  The 
commission shall require a transmission and distribution utility, other than a consumer-
owned transmission and distribution utility that does not choose one or more standard-offer 
service providers for its territory, to establish electric billing and metering services 
necessary to accommodate time-of-use rates for standard-offer service for residential and 
small commercial customers.
Sec. 10.  35-A MRSA §3212, sub-§8 is enacted to read:
8.  Assistance program participants; standard-offer service required.  
Notwithstanding any provision of law to the contrary, an electricity customer enrolled in 
an assistance program may not purchase generation service from a competitive electricity 
provider and must be enrolled in standard-offer service. For the purposes of this subsection, 
"assistance program" means:
A. Low-income assistance provided by the commission in accordance with section 
3214, subsection 2;
B. An arrearage management program established pursuant to section 3214, subsection 
2-A;
C. Assistance provided from the Electric Assistance Program Fund established under 
Title 30-A, section 4962, subsection 1;
D. The statewide Supplemental Nutrition Assistance Program administered by the 
Department of Health and Human Services in accordance with Title 22, section 3104, 
subsection 1, paragraph A;
E. The Women, Infants and Children Special Supplemental Food Program of the 
federal Child Nutrition Act of 1966 administered by the Department of Health and 
Human Services in accordance with Title 22, section 3107;
F. The Temporary Assistance for Needy Families program administered by the 
Department of Health and Human Services in accordance with Title 22, section 3762, 
subsection 3;
G. The Additional Support for People in Retraining and Employment - Temporary 
Assistance for Needy Families program administered by the Department of Health and 
Human Services in accordance with Title 22, section 3781-A, subsection 2; or 
H. A general assistance program administered by a municipality pursuant to Title 22, 
section 4301, subsection 5.
Sec. 11.  35-A MRSA §3214, sub-§2, as amended by PL 2023, c. 201, §1; c. 230, 
§2; c. 306, §§2 and 3; and c. 361, §§3 to 5, is further amended to read:
2.  Low-income assistance.  In order to continue existing levels of financial assistance 
for low-income households and to meet future increases in need caused by economic 
exigencies, the commission shall:
A.  Receive funds collected by all transmission and distribution utilities in the State at 
a rate set by the commission in periodic rate cases;
A-1.  Receive funds collected by the commission for alternative compliance payments 
in accordance with section 3210, subsection 9, paragraph B; and
A-2.  Receive funds appropriated from the General Fund;
B.  Set initial funding for programs based on an assessment of aggregate customer need 
in periodic rate cases.  The funding formula may not result in assistance being counted 
as income or as a resource in other means-tested assistance programs for low-income 
households.  To the extent possible, assistance must be provided in a manner most 
likely to prevent the loss of other federal assistance; and
C.  Receive funds remitted by transmission and distribution utilities with net energy 
billing arrangements for expired kilowatt‑hour credits in accordance with section 
3209‑A, subsection 8.
The commission may use funds available under this subsection to provide financial 
assistance to low-income households in emergency situations as determined by the 
commission in a proceeding or by rule. Except as provided in paragraphs A-1 and C, the 
commission may not provide financial assistance to low-income households pursuant to 
this subsection unless the funds for that assistance are appropriated from the General Fund 
for the purpose of providing that assistance.
The commission may adopt rules to implement this subsection. Rules adopted under this 
subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.
Sec. 12.  35-A MRSA §3214, sub-§2-A, as amended by PL 2023, c. 534, §§1 to 3, 
is further amended to read:
2-A.  Arrearage management program.  Each investor-owned transmission and 
distribution utility shall implement pursuant to this subsection an arrearage management 
program to assist eligible low-income residential customers who are in arrears on their 
electricity bills.  An arrearage management program implemented pursuant to this 
subsection is a plan under which a transmission and distribution utility works with an 
eligible low-income residential customer to establish an affordable payment plan and 
provide credit to that customer toward the customer's accumulated arrears as long as that 
customer remains in compliance with the terms of the program.  If a consumer-owned 
transmission and distribution utility elects to implement an arrearage management 
program, it must do so in accordance with this subsection and rules adopted pursuant to 
this subsection.  All reasonable costs incurred by a transmission and distribution utility, 
including, but not limited to, incremental costs, reconnection fees, administrative costs, 
marketing costs, costs for any 3rd-party assistance received by the transmission and 
distribution utility in administering its arrearage management program and costs for 
providing financial and budgetary guidance to participants whether provided directly or 
through a 3rd party contracted by the transmission and distribution utility to provide that 
guidance, must be paid from the Energy Procurement and Arrearage Management Program 
Cost Fund established in section 3149, subsection 2. The commission shall submit 
legislation to request funding to be paid into the Energy Procurement and Arrearage 
Management Program Cost Fund to ensure that adequate funding is available to pay 
reasonable costs incurred by a transmission and distribution utility in administering its 
arrearage management program. The amount of any arrearage forgiven that is treated as 
bad debt for purposes of cost recovery by the transmission and distribution utility may not 
be included as a reasonable cost.  The commission shall establish requirements relating to 
the arrearage management programs by rule.  Rules adopted pursuant to this subsection are 
routine technical rules pursuant to Title 5, chapter 375, subchapter 2‑A.
In adopting rules regarding arrearage management programs, the commission shall:
A.  Consider best practices as developed and implemented in other states or regions;
B.  Require that an arrearage management program include an electricity usage 
assessment at no cost to the participant;
D.  Ensure that a transmission and distribution utility develops terms and conditions 
for its arrearage management program in a manner that is consistent with the program's 
objectives and is in the best interests of all ratepayers; and
D-1.  Ensure that if a transmission and distribution utility produces any materials, either 
written or electronic, regarding the arrearage management program offered by the 
utility, those materials must state in plainly worded language and in a type size that is 
no less than 12 points that state law requires the utility to offer an arrearage 
management program to its customers and that costs described in paragraph E are not 
paid for by the utility; and.
E.  Ensure that a transmission and distribution utility recovers in rates all reasonable 
costs of arrearage management programs, including:
(1)  Incremental costs;
(2)  Reconnection fees;
(3)  Administrative costs;
(4)  Marketing costs;
(5)  Costs for any 3rd-party assistance it receives in administering its arrearage 
management program; and
(6)  Costs for providing financial and budgetary guidance to participants whether 
provided directly or through a 3rd party contracted by the transmission and 
distribution utility to provide that guidance.
The amount of any arrearage forgiven that is treated as bad debt for purposes of cost 
recovery by the transmission and distribution utility may not be included as a 
reasonable cost under this paragraph.
The Efficiency Maine Trust shall work with investor-owned transmission and distribution 
utilities, consumer-owned transmission and distribution utilities that elect to participate in 
an arrearage management program and other stakeholders to provide access to a 
complementary low-income energy efficiency program for participants in arrearage 
management programs in order to help reduce participants' energy consumption.
No later than January 28, 2028, the commission shall prepare a report assessing the 
effectiveness of arrearage management programs from October 1, 2024 through September 
30, 2027, including the number of participants enrolled in the programs, the number of 
participants completing the programs, the number of participants who have failed to 
complete the programs, the dollar amount of arrears forgiven, the impact on any 
participating transmission and distribution utility's bad debt as a result of the programs, the 
costs and benefits to all ratepayers associated with the programs and recommendations for 
ways in which the programs might be improved or continued for the benefit of all 
ratepayers.  In preparing its report, the commission shall hold at least one formal 
stakeholder meeting involving affected parties, including the Office of the Public Advocate 
and the participating transmission and distribution utilities.  Parties must also be provided 
an opportunity to submit written comments to the commission regarding the performance 
of the programs.
The joint standing committee of the Legislature having jurisdiction over utilities matters 
may report out a bill relating to the commission report to the Second Regular Session of 
the 133rd Legislature.
This subsection is repealed September 30, 2028.
Sec. 13.  36 MRSA §656, sub-§1, ¶L, as enacted by PL 2023, c. 682, §5, is 
amended to read:
L.  For property tax years beginning on or after April 1, 2025, solar energy equipment 
that generates heat or electricity if the municipality in which the solar energy equipment 
is located approves the exemption and:
(1)  All of the energy is used on the site where the property is located;
(2)  The equipment 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
(3)  All of the energy is transmitted through the facilities of a transmission and 
distribution utility and a utility customer or customers receive a utility bill credit 
for the energy generated by the equipment pursuant to Title 35‑A, section 3209‑A 
or 3209‑B and the generator of electricity entered into a fully executed 
interconnection agreement with a transmission and distribution utility prior to June 
1, 2024.
On or before April 1st of the first property tax year for which a taxpayer claims an 
exemption under this paragraph, the taxpayer claiming the exemption shall file a report 
with the assessor.  The report must identify the property for which the exemption is 
claimed and must be made on a form prescribed by the State Tax Assessor or a 
substitute form approved by the State Tax Assessor.  The State Tax Assessor shall 
furnish copies of the form to each municipality in the State and make the forms 
available to taxpayers.
Sec. 14.  36 MRSA §1752, sub-§17, as amended by PL 2013, c. 546, §9, is further 
amended to read:
17.  Tangible personal property.  "Tangible personal property" means personal 
property that may be seen, weighed, measured, felt, touched or in any other manner 
perceived by the senses, but does not include rights and credits, insurance policies, bills of 
exchange, stocks and bonds and similar evidences of indebtedness or ownership.  "Tangible 
personal property" includes electricity other than electricity consumed by residential 
customers and small commercial customers as defined in Title 35-A, section 3106, 
subsection 1, paragraphs C and D, respectively.  "Tangible personal property" includes any 
computer software that is not a custom computer software program.  "Tangible personal 
property" includes any product transferred electronically.
SUMMARY
This bill does the following.
1. It prohibits the recovery in rates of costs incurred by a transmission and distribution 
utility that are attributable to net energy billing and provides that such costs must be paid 
from the General Fund. The bill directs the Public Utilities Commission to adopt routine 
technical rules to identify the types of costs that are attributable to net energy billing.
2. It provides that costs incurred by a transmission and distribution utility for the 
purchase or contracting required by the commission for energy, renewable energy credits, 
energy storage systems and transmission infrastructure must be paid from the General 
Fund. 
3. It prohibits an electricity customer in the State who is a participant in an assistance 
program from purchasing generation service from a competitive electricity provider and 
requires that the customer be enrolled in standard-offer service. 
4. It requires the commission to require a standard-offer service provider to implement 
time-of-use rates for residential and small commercial customers in the service area of a 
transmission and distribution utility if the utility has the necessary electric billing and 
metering services to accommodate time-of-use rates. It also requires the commission to 
require a transmission and distribution utility that has selected one or more standard-offer 
service providers to establish electric billing and metering services necessary to 
accommodate time-of-use rates.
5. It provides that certain costs associated with low-income assistance provided by the 
commission and an arrearage management program established by a transmission and 
distribution utility may not be paid by an assessment on the utilities or by electricity 
customers and instead must be paid from the General Fund.  
6. It excepts electricity consumed by residential and small commercial customers from 
the definition of "tangible personal property" that is subject to sales tax.  
7. It limits the applicability of a property tax exemption for solar energy equipment to 
those that have been approved by the municipality in which the solar energy equipment is 
located.