Bill > LD1412

This bill amends Maine's existing law regarding contingency reserve funds for consumer-owned electric transmission and distribution utilities by increasing the allowable contingency reserve percentage from 25% to 35% of yearly revenues over the amount required to operate the utility. The bill removes language excluding purchased power supply costs from this calculation and provides the Public Utilities Commission (PUC) with additional discretion to authorize utilities to establish rates that provide for a contingency reserve fund reflecting an amount greater than the 35% threshold. Under the revised law, any surplus beyond the 35% (or the percentage specifically authorized by the commission) must be used to offset future rate requirements, and any interest generated by these funds must be deposited into the contingency reserve fund. The bill maintains the existing requirement that the contingency reserve fund balance at the end of the fiscal year cannot exceed the specified percentage of yearly revenues, with the key change being the increase from 25% to 35%. This modification potentially gives consumer-owned electric utilities more financial flexibility in managing their reserves and preparing for unexpected expenses or investments.

Transportation and Infrastructure

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1412&snum=132