Sec. 1. 35-A MRSA §3211-A, sub-§4, as enacted by PL 2001, c. 624, §4, is amended to read:

4. Funding level. The commission shall assess transmission and distribution utilities to collect funds for conservation programs and administrative costs in accordance with this subsection. The amount of all assessments by the commission under this subsection plus expenditures of a transmission and distribution utility associated with prior conservation efforts must result in total conservation expenditures by each transmission and distribution utility that:

A. Are based on the relevant characteristics of the transmission and distribution utility's service territory, including the needs of customers; and

B. Do not exceed .15 cent per kilowatt-hour;

B-1.__Equal .25 cent per kilowatt-hour for all transmission and distribution utilities other than consumer-owned transmission and distribution utilities; in the case of consumer-owned transmission and distribution utilities the commission shall set assessment levels that are just and reasonable and comport with paragraph A.

C. Are no less than 0.5% of the total transmission and distribution revenues of the transmission and distribution utility; and

D. Are proportionally equivalent to the total conservation expenditures of other transmission and distribution utilities, unless the commission finds that a different amount is justified; however, any increase in an assessment on a transmission and distribution utility by the commission must be based on factors other than the achievement of proportional equivalency.

SUMMARY

Current law provides for the exercise of some discretion by the Public Utilities Commission in setting assessment rates for funding electricity conservation programs for Maine's electricity customers. This bill instead establishes a single rate, .25 cent per kilowatt-hour, for all investor-owned utilities in the State while leaving with the commission discretion for setting an assessment rate for consumer-owned utilities, which generally are smaller and operate with lower overall costs.