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PUBLIC LAWS OF MAINE
First Regular Session of the 119th

CHAPTER 158

S.P. 439 - L.D. 1276

An Act Relating to Utilities and Affiliated Interests

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 35-A MRSA §713, as enacted by PL 1997, c. 237, §2, is amended to read:

§713. Unregulated business ventures of utilities

     A utility may not charge its ratepayers for costs attributable to unregulated business ventures undertaken by the utility or an affiliated interest. The commission shall allocate, between a utility's shareholders and ratepayers, costs for facilities, services or intangibles, including good will or use of a brand name, that are shared between regulated and unregulated business activities. The commission shall also attempt to ensure that the utility or the affiliated interest does not have an undue unfair advantage in any competitive market as a result of its regulated status or its affiliation with a regulated utility.

     Complaints by entities competing with a utility or an affiliated interest in an unregulated market, alleging that the utility or affiliated interest has an undue competitive advantage as a result of any relationship with the parent or affiliated regulated utility must be adjudicated by the commission. The commission shall render a decision on any complaint filed under this section within 9 months of the date of the filing. The commission may dismiss without hearing any complaint that it concludes is clearly intended to harass or delay, is frivolous or is clearly without merit.

     A complaint filed under this section must specify, to the extent possible, the nature and extent of the alleged undue competitive advantage and the basis for the belief that a an undue competitive advantage exists. The utility shall respond to the complaint within 10 days of receiving notice from the commission of the complaint. Within 10 days of receiving the utility's response, the commission shall determine whether the complaint is clearly intended to harass or delay, is frivolous or is clearly without merit.

     For the purposes of this section, the term "affiliated interest" has the same meaning as in section 707, subsection 1, paragraph A. For the purposes of this section, "undue competitive advantage" means an advantage gained by a violation of the requirements established by the commission by rule pursuant to section 715.

     Sec. 2. 35-A MRSA §715, as enacted by PL 1997, c. 237, §2, is amended to read:

§715. Rulemaking

     The commission shall adopt rules that prescribe the allocation of costs for facilities, services or intangibles that are shared between regulated and unregulated activities of a utility or an affiliated interest as defined in section 707, subsection 1, paragraph A. Rules adopted by the commission may not establish a presumption with regard to the value of good will used by an affiliated interest in those cases where the business venture of the affiliated interest is regulated by the commission. Rules adopted pursuant to this section are major substantive rules as defined in Title 5, chapter 375, subchapter II-A.

     Sec. 3. Major substantive rule revision. The Public Utilities Commission shall amend its major substantive rule, Chapter 820: Requirements for Non-core Utility Activities and Transactions Between Affiliates, to conform to that section of this Act that amends the Maine Revised Statutes, Title 35-A, section 715. The Public Utilities Commission is not required to hold hearings or conduct other formal proceedings prior to amending its rule to conform to that section of this Act that amends Title 35-A, section 715. Notwithstanding Title 5, chapter 375, subchapter II-A, amending the rule to conform to that section of this Act that amends Title 35-A, section 715 does not require further legislative approval.

Effective September 18, 1999, unless otherwise indicated.

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