Previous PageTable Of ContentsNext Page

PUBLIC LAWS
Second Regular Session of the 122nd

CHAPTER 677, PART C

     Sec. C-1. 35-A MRSA §§3210-C and 3210-D are enacted to read:

§3210-C. Capacity resource adequacy

     1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

     2. Policy. It is the policy of this State:

     3. Commission authority. The commission may direct large investor-owned transmission and distribution utilities to enter into long-term contracts for:

The commission may direct large investor-owned transmission and distribution utilities to enter into contracts under this subsection only as agents for their customers and only in accordance with this section. To the greatest extent possible, the commission shall develop procedures having the same legal and financial effect as the procedures used for standard-offer service pursuant to section 3212 for large investor-owned transmission and distribution utilities.
The commission may enter into contracts for interruptible, demand response or energy efficiency capacity resources.
Capacity resources contracted under this subsection may not exceed the amount necessary to ensure the reliability of the electric grid of this State or to lower customer costs as determined by the commission pursuant to rules adopted under subsection 10.
Unless the commission determines the public interest requires otherwise, a capacity resource may not be contracted under this subsection unless the commission determines that the capacity resource is recognized as a capacity resource for purposes of any regional or federal capacity requirements.

     4. Priority of capacity resources. In selecting capacity resources for contracting pursuant to subsection 3, the commission shall apply the following standards.

     5. Contract term. A contract entered into pursuant to subsection 3 may not be for more than 10 years, unless the commission finds a contract for a longer term to be prudent.

     6. Competitive solicitation process and contract negotiation. For purposes of selecting potential capacity resources for contracting pursuant to subsection 3, the commission shall conduct a competitive solicitation no less often than every 3 years if the commission determines that the likely benefits to ratepayers resulting from any contracts entered into as a result of the solicitation process will exceed the likely costs. Following review of bids, the commission may negotiate with one or more potential suppliers. When only one bid has been offered, the commission shall ensure that negotiations are based on full project cost disclosure by the potential supplier. The commission shall negotiate contracts that are commercially reasonable and that commit all parties to commercially reasonable behavior.

     7. Disposition of resources. A large investor-owned transmission and distribution utility shall sell capacity resources purchased pursuant to subsection 3 or take other action relative to such capacity resources as directed by the commission.

     8. Cost recovery. The commission shall ensure that a large investor-owned transmission and distribution utility recovers in rates all costs of contracts entered into pursuant to subsection 3, including but not limited to any impacts on the utility's costs of capital. A price differential existing at any time during the term of the contract between the contract price and the prevailing market price at which the capacity resource is sold must be reflected in rates and may not be deemed to be imprudent.

     9. Contract payments. Contracts for capacity and related energy entered into pursuant to this section must provide that payments will be made only after contracted amounts of capacity and related energy have been provided.

     10. Rules. The commission shall adopt rules to implement this section. In adopting rules, the commission shall consider the financial implications of this section on large investor-owned transmission and distribution utilities. Rules adopted under this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A. The commission may not enter into or direct any large investor-owned transmission and distribution utility to enter into any contract pursuant to this section until rules are finally adopted under this subsection.

§3210-D. Resource plan

     The commission shall adopt by rule a long-term plan for electric resource adequacy for this State to ensure grid reliability and the provision or availability of electricity to consumers at the lowest cost.

     After final adoption of rules under this section, the commission shall take any necessary action within its authority under this Title to support achievement of the objectives of the plan.

     Rules adopted under this section are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.

     Sec. C-2. 37-B MRSA §742, sub-§2, ¶B, as amended by PL 2001, c. 353, §5, is further amended to read:

     Sec. C-3. Public Utilities Commission resource plan. The Public Utilities Commission shall adopt the resource plan required under the Maine Revised Statutes, Title 35-A, section 3210-D in accordance with the following schedule.

     1. Outline and strategy. By March 1, 2007, the commission shall establish an outline or procurement strategy for the resource plan and provide the outline or procurement strategy to the joint standing committee of the Legislature having jurisdiction over utilities matters for its review and comment.

     2. Final resource plan. By March 1, 2008, the commission shall submit to the Legislature provisionally adopted rules establishing the resource plan.

Revisor of Statutes Homepage Subject Index Search 122nd Laws of Maine Maine Legislature

About the 2nd Regular & 2nd Special Session Laws Of Maine

Previous PageTop Of PageTable Of ContentsNext Page

Office of the Revisor of Statutes
State House, Room 108
Augusta, Maine 04333

Contact the Office of the Revisor of Statutes