Code of Maine Rules › 65 - DEPARTMENT OF PUBLIC UTILITIES COMMISSION › 407 - PUBLIC UTILITIES COMMISSION › Chapter 304 - STANDARDS OF CONDUCT FOR TRANSMISSION AND DISTRIBUTION UTILITIES AND AFFILIATED COMPETITIVE ELECTRICITY PROVIDERS › Section 407-304-7 - SANCTIONS

Current through 2024-29, July 17, 2024
This section governs sanctions applicable to violations of
				   35-A M.R.S.A.
				  §§3205,
				  3206
				  and this Chapter. For purposes of imposing a sanction under this Section, the
				  provisions of a distribution utility's implementation plan and Chapter 820 are
				  incorporated into this Chapter. Penalties collected pursuant to this section
				  must be deposited in the Public Utilities Commission Reimbursement Fund.
A. General Administrative Penalties;
				Disgorgement. The Commission may, in an adjudicatory proceeding, impose an
				administrative penalty of up to $100,000 for a violation of
				 35-A M.R.S.A.
				§§3205,
				3206
				or this Chapter. Each day a violation continues constitutes a separate offense.
				In addition, the Commission may, in an adjudicatory proceeding, require
				disgorgement of profits or revenues realized as a result of a violation of
				 35-A M.R.S.A.,
				§§3205,
				3206
				or this Chapter.
B. Violations of
				the 33% Market Share Limitation. If an affiliated competitive provider exceeds
				the 33% market share limitation imposed by Section
				4, the penalty is determined according
				to the following:
1. If in the calendar year
				reported pursuant to Section
				4(A) (current
				calendar year), the actual retail sales (measured in kilowatt-hours) of an
				affiliated competitive provider plus its contracted retail sales (measured in
				kilowatt-hours) exceed 33% but not 35% of the total retail sales in its
				affiliated distribution utility's service territory in the year previous to the
				year reported pursuant to Section
				4(A) (prior calendar
				year), the penalty equals the difference between the average revenue per
				kilowatt-hour the affiliated competitive provider received for sales in the
				service territory of its affiliated distribution utility during the current
				calendar year and the New England independent system operator average market
				clearing prices for capacity and energy for the current calendar year,
				multiplied by the kilowatt-hours in excess of 33% of the total retail
				kilowatt-hours sold within the affiliated distribution utility's service
				territory in the prior year, up to a maximum penalty of $100,000 per day.
For example, assuming the total retail sales within a
				  distribution utility's service territory in calendar year 2002 was
				  9,000,000,000 kWhs, an affiliated competitive provider could not sell more than
				  2,970,000,000 kWhs (9,000,000,000 * 0.33 = 2,970,000,000) within that
				  distribution utility's service territory in calendar year 2003 without
				  incurring a penalty. If, hypothetically, in 2003 the affiliated competitive
				  provider sold 34% of the 2002 total retail kWh sales within its affiliated
				  distribution utility's territory, received $91,800,000 in revenues associated
				  with those sales and the average market clearing price for capacity and energy
				  in 2003 was $0.025 per kWh, a penalty of $450,000 would be due: [(0.34 *
				  9,000,000,000 kWhs = 3,060,000,000 kWhs; excess sales = 3,060,000,000 -
				  2,970,000,000 = 90,000,000 kWhs; average revenue per kWh =
				  $91,800,000/3,060,000,000 kWhs = $0.030 per kWh sale price; therefore the
				  penalty = 90,000,000 * (0.030 - 0.025)=$450,000].
2. If the affiliated competitive provider's
				actual retail sales (measured in kilowatt-hours) plus its contracted retail
				sales (measured in kilowatt-hours) in the current calendar year exceed 35% of
				the total retail sales in its affiliated distribution utility's service
				territory in the prior calendar year, the penalty equals the penalty as
				determined in subsection
				1 plus the average revenue per
				kilowatt hour the affiliated competitive provider received for sales in the
				service territory during the current calendar year multiplied by the kilowatt
				hours in excess of 35% of the total retail kilowatt-hours sold within the
				affiliated distribution utility's service territory in the prior year, up to a
				maximum penalty of $100,000 per day.
For example, using the same assumptions as in subsection
				  1 except that in 2003 the affiliated
				  competitive provider sold 38% of the 2002 total retail kWh sales within that
				  distribution utility's territory and received $102,600,000 in revenues
				  associated with those sales, a penalty of $9,000,000 would be due: [(0.38 *
				  9,000,000,000 kWhs = 3,420,000,000 kWhs; sales in excess of 33% but up to 35% =
				  (0.35 * 9,000,000,000) - 2,970,000,000 = 180,000,000 kWh; sales in excess of
				  35% = 3,420,000,000 - (0.35 * 9,000,000,000 kWhs) = 270,000,000 kWhs; therefore
				  the penalty = 180,000,000 * (0.030 - 0.025) + (270,000,000 * 0.030) = $900,000
				  + $8,100,000 = $9,000,000].