Printed on recycled paper 132nd MAINE LEGISLATURE FIRST SPECIAL SESSION-2025 Legislative Document No. 1592H.P. 1050House of Representatives, April 10, 2025 An Act to Reduce Energy Costs by Permitting the Ownership of Generation by Investor-owned Transmission and Distribution Utilities Reference to the Committee on Energy, Utilities and Technology suggested and ordered printed. ROBERT B. HUNT Clerk Presented by Representative FAULKINGHAM of Winter Harbor. Cosponsored by Senator HARRINGTON of York and Representatives: FOSTER of Dexter, MCINTYRE of Lowell. Page 1 - 132LR0318(01) 1 2 as enacted by PL 1999, c. 398, Pt. B, §1, is 3 amended to read: 4 section 3204, 5 transmission Transmission and distribution utilities, including consumer-owned utilities, 6 that operate or manage a portion of the grid connected to the New England grid by 7 transmission lines that pass through Canada may enter into commercially reasonable 8 contracts with Canadian electric utilities for the purchase of back-up services, tie-line 9 interruption services, ancillary services, transmission services or any other service that 10 promotes effective retail electric competition in northern Maine. The transmission and 11 distribution utilities shall make all such contract services available to competitive 12 electricity providers at cost, on an equitable basis. Commission approval of such contracts 13 is not required. Nothing in this This subsection exempts does not exempt from commission 14 jurisdiction utility operations or activities undertaken pursuant to such contracts. 15 as enacted by PL 1997, c. 316, §3, is repealed. 16 as enacted by PL 1997, c. 316, §3, is repealed. 17 as enacted by PL 2017, c. 287, §1, is 18 repealed. 19 is enacted to read: 20 21 owned transmission and distribution utility may own, have a financial interest in or 22 otherwise control generation or generation-related assets in accordance with rules adopted 23 by the commission pursuant to this subsection. The commission shall adopt rules to 24 establish terms, conditions and standards of conduct that: 25 A. Provide that the ratepayers of an investor-owned transmission and distribution 26 utility are not responsible for the costs of that investor-owned transmission and 27 distribution utility's generation or generation-related assets except as approved by the 28 commission; 29 B. Require the accounts and records of the investor-owned transmission and 30 distribution utility to be kept separate from the accounts and records associated with 31 any generation or generation-related assets owned by the utility; and 32 C. Protect ratepayers. 33 The commission's rules may also establish standards of conduct applicable to the ownership 34 of generation or generation-related assets by an affiliate of an investor-owned transmission 35 and distribution utility. For purposes of this subsection, "affiliate" means a person who has 36 any direct or indirect ownership interest in, or is a direct or indirect subsidiary of a person 37 who has any ownership interest in, the investor-owned transmission and distribution utility, 38 but does not include a wholly owned or partially owned direct or indirect subsidiary of the 39 investor-owned transmission and distribution utility. 40 Rules adopted pursuant to this subsection are major substantive rules as defined in Title 5, 41 chapter 375, subchapter 2‑A. Page 2 - 132LR0318(01) 1 as enacted by PL 2009, c. 329, Pt. A, §4, is 2 amended to read: 3 4 Notwithstanding section 3204, the The commission may direct investor-owned 5 transmission and distribution utilities to enter into long-term contracts with program 6 participants located within the service territory of the utility for energy, capacity resources 7 or renewable energy credits. The commission may direct investor-owned transmission and 8 distribution utilities to enter into contracts under this subsection only as agents for their 9 customers and only in accordance with this section. An investor-owned transmission and 10 distribution utility shall sell energy, capacity resources or renewable energy credits 11 purchased pursuant to this subsection into the wholesale electricity market or take other 12 action relative to such energy, capacity resources or renewable energy credits as directed 13 by the commission. 14 as repealed and replaced by PL 2023, c. 353, 15 §6, is amended to read: 16 17 Notwithstanding section 3204, the The commission may direct an investor-owned 18 transmission and distribution utility to enter into long-term contracts for energy with one 19 or more program participants if the program participant is: 20 A. Located within the service territory of the investor-owned transmission and 21 distribution utility; or 22 B. Located within the service territory of a consumer-owned transmission and 23 distribution utility if: 24 (1) The program participant delivers energy to a location within the service 25 territory of the investor-owned transmission and distribution utility; 26 (2) The program participant does not sell energy to the consumer-owned 27 transmission and distribution utility in whose territory the program participant is 28 located; and 29 (3) The consumer-owned transmission and distribution utility consents to the sale 30 and transmission of that energy pursuant to a long-term contract. 31 The commission may direct investor-owned transmission and distribution utilities to enter 32 into contracts under this subsection only as agents for their customers and only in 33 accordance with this section. An investor-owned transmission and distribution utility shall 34 sell energy pursuant to this subsection into the wholesale electricity market or take other 35 action relative to that energy directed by the commission. 36 37 This bill permits an investor-owned transmission and distribution utility to own, have 38 a financial interest in or otherwise control generation or generation-related assets in 39 accordance with terms, conditions and standards of conduct adopted by the Public Utilities 40 Commission. The commission must adopt major substantive rules that ensure that the 41 ratepayers of an investor-owned transmission and distribution utility are not responsible 42 for the costs of that investor-owned transmission and distribution utility's generation or 37 38 39 40 41 42 Page 3 - 132LR0318(01) 43 generation-related assets except as approved by the commission; require the accounts and 44 records of the investor-owned transmission and distribution utility to be kept separate from 45 the accounts and records associated with any generation or generation-related assets owned 46 by the utility; and protect ratepayers. The commission's rules may also establish standards 47 of conduct applicable to the ownership of generation or generation-related assets by an 48 affiliate of an investor-owned transmission and distribution utility. 1 2 3 4 5 6