Sec. G-1. 35-A MRSA §3205, sub-§3, ¶H, as enacted by PL 1997, c. 316, §3, is amended to read:
H. A distribution utility shall keep a log of all requests for information made by the affiliated competitive provider and nonaffiliated competitive electricity providers and the date of the response to such requests and shall keep a log of any other transactions between the distribution utility and the affiliated provider that the commission may by rule require. The log is subject to periodic review by the commission. The commission shall establish categories of requests for information and shall specify which categories, if any, are sufficiently trivial to be exempt from the log requirements imposed under this paragraph.
Sec. G-2. 35-A MRSA §3205, sub-§3, ¶Q is enacted to read:
Q. A distribution utility may not subsidize the business of its affiliated competitive provider at ratepayer expense in any manner not specifically authorized under this section.
Sec. G-3. 35-A MRSA §3205, sub-§§5 to 7, as enacted by PL 1997, c. 316, §3, are repealed.
Sec. G-4. 35-A MRSA §3206-A is enacted to read:
§3206-A. Marketing; investor-owned utilities; penalties
1. Penalties. The commission shall require an investor-owned transmission and distribution utility to divest an affiliated competitive provider if the commission determines in an adjudicatory proceeding that:
A. The distribution utility or an affiliated competitive provider has knowingly violated section 3205 or section 3206 or any rule adopted by the commission pursuant to those sections; and
B. The violation resulted or had the potential to result in substantial injury to retail consumers of electric energy or to the competitive retail market for electric energy.
The commission may impose administrative penalties of up to $100,000 for a violation of section 3205 or section 3206 or any rule adopted by the commission pursuant to those sections. Each day of a violation constitutes a separate offense. In addition, the commission may require disgorgement of profits or revenues realized as a result of a violation of section 3205 or section 3206 or any rule adopted by the commission pursuant to those sections. Penalties collected by the commission under this section must be deposited in the Public Utilities Commission Reimbursement Fund under section 117.
2. Prohibition; divestiture. If, after the effective date of this section, 10% or more of the stock of an investor-owned transmission and distribution utility is purchased by an entity:
A. The purchasing entity and any related entity may not sell or offer for sale generation service to any retail consumer of electric energy in this State; and
B. If, in an adjudicatory proceeding, the commission determines that an affiliated competitive provider obtains an unfair market advantage as a result of the purchase, the commission shall order the investor-owned transmission and distribution utility to divest the affiliated competitive provider.
If the commission orders a divestiture pursuant to this subsection, the distribution utility must complete the divestiture within 12 months of the order to divest, unless the commission grants an extension. Upon application by the distribution utility, the commission may grant an extension for the purpose of permitting the utility to complete a divestiture that has been initiated in good faith but not finalized within the 12-month period. The commission shall oversee and approve a divestiture in accordance with rules adopted pursuant to subsection 4.
3. Effect of divestiture. If the commission orders an investor-owned transmission and distribution utility to divest an affiliated competitive provider pursuant to this section, the investor-owned transmission and distribution utility may not have an affiliated interest in a competitive electricity provider after the divestiture.
As used in this section, the term "affiliated competitive provider" means a competitive electricity provider whose relationship with an investor-owned transmission and distribution utility qualifies it as an affiliated interest.
Sec. G-5. Modification of rules. The Public Utilities Commission shall modify its major substantive rule, Chapter 304: Standard of Conduct for Transmission and Distribution Utilities and Affiliated Competitive Electricity Providers, as follows to bring it into conformity with the changes to law accomplished pursuant to this Part:
1. Add a provision providing that an investor-owned electric utility may not subsidize the business of its affiliated competitive provider at ratepayer expense in a manner not specifically authorized by the Maine Revised Statutes, Title 35-A, section 3205; and
2. Modify the penalty provisions to increase the administrative penalties from a maximum of $10,000 to a maximum of $100,000 and provide for disgorgement of profits in addition to the administrative penalty for violations of the standards of conduct.
The Public Utilities Commission is not required to hold hearings or conduct other formal proceedings to modify its major substantive rule in accordance with this section and such modifications do not require review or approval of the Legislature prior to becoming effective.
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