Sec. 1. 35-A MRSA §303, as amended by PL 1987, c. 613, §2, is further amended to read:

§303. Valuation of property for fixing rates

In determining just and reasonable rates, tolls and charges, the commission shall fix a reasonable value upon all the property of a public utility and upon an electric plant to the extent paid for by the utility on the premises of any of its customers, which is used or required to be used in its service to the public within the State and a fair return on that property. In fixing a reasonable value, the commission shall give due consideration to evidence of the cost of the property when first devoted to public use and the prudent acquisition cost to the utility, less depreciation on each, and any other material and relevant factors or evidence, but the other factors shall may not include current value. In making a valuation, the commission may consult reports, records or other information available to it in the office of any state office or board. In the event of rate determinations for a public utility's ownership interest under a joint ownership agreement that are subject to the primary jurisdiction of the Federal Energy Regulatory Commission, the commission shall make the rate determinations in a manner that excludes from recovery in retail rates any cost found to be imprudent or excluded from wholesale rates by the Federal Energy Regulatory Commission.

SUMMARY

This bill requires the Public Utilities Commission to exclude from rates any utility costs found by the Federal Regulatory Energy Commission to have been imprudently incurred. Thus, rather than relitigating the same issue, the Public Utilities Commission will now simply recognize and apply the findings of the Federal Regulatory Energy Commission regarding imprudently incurred costs.