Sec. 1. 35-A MRSA §2523 is enacted to read:

§2523.__Municipal acquisition of utility street lighting

1.__Municipal rights regarding lighting equipment.__Any municipality receiving street lighting services from a transmission and distribution utility pursuant to a tariff that provides for the use by the municipality of lighting equipment owned by the transmission and distribution utility, such as luminaries, lamps, brackets and other equipment necessary for the conversion of electric energy into street lighting service, has the rights with respect to such lighting equipment as set forth in this section.

These rights apply in the event that the municipality does not establish a municipal lighting plant in accordance with Part 3.__ These rights apply in the event that a municipal lighting plant is established but ownership and control of the distribution facilities needed to deliver electric energy to the lighting equipment are held and retained by the transmission and distribution utility serving the municipality prior to the establishment of the lighting plant.

2.__Municipal options.__A municipality subject to the provisions of this section, upon 60 days' notice to the transmission and distribution utility and to the commission and subject to the provisions of subsections 3 to 8, may:

A.__Purchase electric energy for use in lighting equipment owned or leased by the municipality from the transmission and distribution utility or any other person allowed by law to provide electric energy;

B.__Use the space on any pole, lamp post or other mounting surface previously used by the transmission and distribution utility for the mounting of the lighting equipment of the transmission and distribution utility; and

C.__Acquire any, or all, of the lighting equipment of the transmission and distribution utility in the municipality in accordance with subsection 3.

3.__Municipality shall pay compensation.__Any municipality exercising the option to convert its street lighting service pursuant to this section shall compensate the transmission and distribution utility for its unamortized investment, net of any salvage value obtained by the transmission and distribution utility under the circumstances, in the lighting equipment owned