CHAPTER 492
H.P. 1252 - L.D. 1771
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, pursuant to current legislation no certificates of approval for electric rate stabilization projects may be issued after February 1, 1997; and
Whereas, there continues to be a need for the approval of electric rate stabilization projects; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 10 MRSA §1053, sub-§6, as repealed and replaced by PL 1995, c. 289, §6, is repealed and the following enacted in its place:
6. Securities outstanding. The principal amount of revenue obligation securities the authority may have outstanding at any one time to which subsection 5 is stated to apply in the trust agreement or other document may not exceed an aggregate principal amount equal to $657,000,000 as follows:
A. The sum of $330,000,000, consisting of not more than $275,000,000 for loans and up to $55,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for electric rate stabilization projects;
B. The sum of $120,000,000 consisting of not more than $100,000,000 for loans and up to $20,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for major business expansion projects;
C. The sum of $57,000,000 consisting of not more than $45,000,000 for loans and up to $12,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to workers' compensation residual market mechanism projects; and
D. The sum of $150,000,000 less the aggregate outstanding balance of mortgage loans secured by capital reserve funds pursuant to section 1032 for all other revenue obligation securities issued pursuant to this subchapter.
The amount of revenue obligation securities issued to refund securities previously issued may not be taken into account in determining the principal amount of securities outstanding, provided that proceeds of the refunding securities are applied as promptly as possible to the refunding of the previously issued securities. In computing the total amount of revenue obligation securities of the authority that may at any time be outstanding for any purpose, the amounts of the outstanding revenue obligation securities that have been issued as capital appreciation bonds or as similar instruments are valued as of any date of calculation at their then current accreted value rather than their face value.
Sec. 2. 35-A MRSA §3156, 2nd ¶, as enacted by PL 1993, c. 712, §6, is amended to read:
The commission may not, in any rate proceeding or other context, disallow or otherwise prevent the recovery of costs incurred by the electric utility, including costs projected to be paid by an electric utility to a qualifying facility as defined in section 3303, under the terms of an agreement certified under this section based solely on the execution of the certified agreement. The commission shall take all reasonable action to ensure that amounts required to be paid pursuant to an agreement certified under this section are available.
Sec. 3. 35-A MRSA §3156, last ¶, as amended by PL 1995, c. 698, §1 and affected by §4, is further amended to read:
A certificate may not be issued under this section after February 1, 1997 1998.
Sec. 4. PL 1993, c. 712, §8, as amended by PL 1995, c. 698, §2 and affected by §4, is further amended to read:
Sec. 8. Loans authorized. The Finance Authority of Maine may make loans to electric utilities or to municipal solid waste facilities financed by industrial development or exempt facility bonds, if those facilities are qualifying facilities as defined in the Maine Revised Statutes, Title 35-A, section 3303, for electric rate stabilization projects, as defined in the Maine Revised Statutes, Title 10, section 963-A from up to $220,000,000 $275,000,000 of the proceeds of revenue obligation securities secured by capital reserve funds pursuant to Title 10, section 1053. Notwithstanding any provision of Title 10, chapter 110, loans may aggregate up to $220,000,000 $275,000,000 plus an amount determined by the Finance Authority of Maine of up to an additional aggregate of $44,000,000 $55,000,000 to fund any capital reserve fund established by the authority for these loans. Revenue obligation securities secured by capital reserve funds pursuant to Title 10, section 1053 relating to such loans may not be issued for an electric rate stabilization agreement, as defined in Title 35-A, section 3156, executed after February 1, 1997 1998. Any revenue obligation securities issued for electric rate stabilization projects secured by capital reserve funds pursuant to Title 10, section 1053 are limited obligations of the Finance Authority of Maine payable from revenues from borrowers and any capital reserve funds pledged for those securities as those funds are administered under Title 10, chapter 110, subchapter III and are not payable from any other assets or funds of the Finance Authority of Maine. In addition to all other applicable provisions, the requirements of Title 10, section 1045-A apply to loans for electric rate stabilization projects.
Sec. 5. PL 1993, c. 712, §9, as amended by PL 1995, c. 698, §3 and affected by §4, is further amended to read:
Sec. 9. Reports. The Finance Authority of Maine shall report by February 1, 1996 and May 1, 1997 to the joint standing committee of the Legislature having jurisdiction over utilities matters on all loans made to electric utilities, and by May 1, 1998 on all loans made to qualifying facilities as defined in the Maine Revised Statutes, Title 35-A, section 3303, for electric rate stabilization projects, as defined in the Maine Revised Statutes, Title 10, section 963-A. Each report must identify each loan made, to whom the loan was made, the amount of the loan and the general description of the electric rate stabilization project for which the loan was made. Each report may include recommendations for extending the period during which loans to electric utilities may be made or any other suggestions for changes to the provisions of this Act. The Public Utilities Commission shall report by February 1, 1996 and May 1, 1997 to the joint standing committee of the Legislature having jurisdiction over utilities matters on all electric rate stabilization agreements for which an application for a certificate of approval has been processed pursuant to Title 35-A, section 3156. Each report must identify the number of applications received by the commission, the identity of the applicants, a general description of each application and, for each application, whether the application was approved or denied. Each report may include recommendations for extending the period during which certificates of approval may be issued to electric utilities or any other suggestions for changes to the provisions of this Act.
Sec. 6. Rules. All rule amendments necessary for the Public Utilities Commission or the Finance Authority of Maine to implement this Act are routine technical rules pursuant to the Maine Revised Statutes, Title 5, chapter 375, subchapter II-A.
Sec. 7. Retroactivity. This Act applies retroactively to February 1, 1997.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective June 11, 1997.
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