An Act To Promote Electricity Transmission Independence
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 35-A MRSA §3204-A is enacted to read:
§ 3204-A. Divestiture of transmission
1. Authority. The commission may, after an adjudicatory hearing conducted pursuant to section 1305, order a transmission and distribution utility to divest or otherwise transfer control or operation of some or all of its transmission or transmission-related assets if the commission finds that the utility constructed a transmission line without approval pursuant to subsection 3 or the divestiture:
A. Will lower the costs of electricity to consumers in the State;
B. Will not have a negative impact on the operation of the transmission system; and
C. Is in the public interest.
2. Independent transmission company. If the commission orders a transmission and distribution utility to divest or otherwise transfer control or operation of some or all of its transmission or transmission-related assets pursuant to subsection 1, the commission may order the transmission or transmission-related assets to be sold or transferred to an independent transmission company approved by the Federal Energy Regulatory Commission or a successor agency.
3. Construction of transmission line without approval The commission may investigate pursuant to section 1303 if a transmission and distribution utility began construction of a transmission line under federal authority after the commission declined to issue a certificate of public convenience and necessity for the transmission line pursuant to section 3132.
4. Approval. The terms of a divestiture or transfer of transmission or transmission-related assets ordered to be divested or transferred pursuant to subsection 1 must receive approval by order of the commission before the terms may be carried out.
5. Compensation. The commission shall ensure that a transmission and distribution utility receives fair compensation for the transfer or divestiture of that utility’s transmission or transmission-related assets pursuant to this section.
6. Timing. A transmission and distribution utility must complete the divestiture or transfer of transmission or transmission-related assets within 12 months of an order to divest or transfer pursuant to subsection 1 unless the commission grants an extension. The commission may grant an extension of time to comply with an order issued pursuant to subsection 1 if the commission finds that the transmission and distribution utility requesting the transfer has acted in good faith to complete the divestiture or transfer in a timely manner.
SUMMARY
This bill allows the Public Utilities Commission to order the transfer or divestiture of a transmission and distribution utility’s transmission or transmission-related assets if the commission finds it will lower costs of electricity to consumers in the State, will not have a negative impact on the operation of the transmission system and is in the public interest or if the commission finds that the utility constructed a transmission line without approval.