H.P. 1611 - L.D. 2237
Resolve, Regarding Legislative Review of Chapter 820: Requirements for Non-Core Utility Activities and Transactions Between Affiliates, a Major Substantive Rule of the Public Utilities Commission
Sec. 1. Adoption with amendment. Resolved: That the final adoption of Chapter 820: Requirements for Non-Core Utility Activities and Transactions Between Affiliates, a provisionally adopted major substantive rule of the Public Utilities Commission and submitted for review pursuant to the Maine Administrative Procedure Act, is authorized only if the rule is amended as follows:
1. Provisions relating to the calculation of the value of good will used by an affiliate are modified:
A. To require the Public Utilities Commission to establish for an initial 3-year period an annual amount that must be paid by the affiliate for the use of good will;
B. To require the Public Utilities Commission to reexamine the value of the good will at the end of the initial 3-year period and establish an amount that must be paid by the affiliate for the use of good will for the next 3 years; and
C. To establish that the value of good will used by an affiliate at the end of the 6 years is zero;
2. Provisions relating to limitations on investments by utilities in affiliates are modified:
A. To allow investments by a utility in a regulated affiliate if the utility has not obtained an investment grade bond rating or has filed for a temporary rate increase within 6 months of the utility's filing for approval of the investment, if the utility obtains approval pursuant to the Maine Revised Statutes, Title 35-A, sections 707 and 708, as applicable; and
B. To allow utilities whose bonds are neither publicly rated nor rated by a private letter bond rating to make investments in affiliates if approved by the Public Utilities Commission pursuant to the Maine Revised Statutes, Title 35-A, section 707 and 708, as applicable; and
3. Provisions relating to payments for the use of good will by an affiliate are modified to specify that they apply to affiliates created on or after September 19, 1997, as long as:
A. The value of the good will and the payments for its use are calculated on a going-forward basis; and
B. The affiliate is not required to pay any additional amounts for good will used prior to the effective date of the rule.
The Public Utilities Commission is not required to hold hearings or conduct other formal proceedings prior to finally adopting the rule in accordance with this resolve.
Effective June 30, 1998, unless otherwise indicated.
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