Sec. 1. 35-A MRSA §3195, sub-§6, as amended by PL 1999, c. 398, Pt. A, §71 and affected by §§104 and 105, is further amended to read:

6. Rate flexibility. Notwithstanding sections 307 and 703, the commission, in an adjudicatory proceeding, may authorize a transmission and distribution utility to implement a program under which:

A. The utility may change its schedule of rates with limited notice to the commission; and

B. The utility may enter into contracts for the sale of transmission and distribution services and related management services with limited or no prior express approval by the commission.

The commission shall render its decision in any adjudicatory proceeding held for the purposes of authorizing a utility to implement a program consistent with this subsection within 9 months of the initiation of the proceeding. In the adjudicatory proceeding, the commission shall establish the terms and conditions under which a program is authorized under this subsection. The authority granted to the commission under this subsection is in addition to the authority of the commission granted under other provisions of this Title and nothing in this subsection may be construed to limit the authority of the commission under any other provision of this Title.

Notwithstanding any other provision of law, no later than October 15, 2003 the commission shall determine one or more rates for each class of customers served by the utility for each transmission and distribution utility's service to ski lift and snowmaking operations that accurately reflect the utility's cost of service, including proper recognition of costs imposed due to the monthly and annual peaks of the number of customers served by the utility.

SUMMARY

This bill requires the Public Utilities Commission to establish rates for transmission and distribution utility service to ski areas in the State for lift operation and snowmaking that accurately reflect the winter and summer peaks in use of transmission and distribution utilities.