Sec. 1. 35-A MRSA §3153-A, sub-§1, ¶F, as amended by PL 1993, c. 402, §2, is further amended to read:

F. As defined by the commission by rule, cost-effective conversions of electric space heat systems to systems relying on other fuels and other techniques for enabling homeowners and tenants to replace on-peak, winter period electric usage with less expensive sources of heat; and

Sec. 2. 35-A MRSA §3153-A, sub-§1, ¶G, as amended by PL 1993, c. 402, §2, is repealed.

Sec. 3. 35-A MRSA §3204, sub-§9 is enacted to read:

9.__Tax revenues from divestiture.__Corporate income taxes collected from electric utilities by the State Tax Assessor pursuant to Title 36, Part 8, to the extent attributable to the sale or transfer of generation assets divested pursuant to this section, must be paid by the State Tax Assessor to the Maine State Housing Authority, which shall deposit them in the Low- income Electric Consumer Trust Fund established pursuant to section 3214-A.

Sec. 4. 35-A MRSA §3214, as enacted by PL 1997, c. 316, §3, is amended to read:

§3214. Needs-based low-income assistance

1. Policy. In order to meet legitimate needs of electricity consumers who are unable to pay their electricity electric utility bills in full and who satisfy eligibility criteria for assistance, and recognizing that electricity is a basic necessity to which all residents of the State should have access, it is the policy of the State to ensure adequate provision of financial assistance.

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; and

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,