Bill > LD2038

This bill requires transmission and distribution utilities in Maine to participate in a Regional Transmission Organization (RTO), which is an independent entity authorized by the Federal Energy Regulatory Commission to manage regional electrical transmission systems and wholesale electricity markets. The legislation mandates that utilities cannot own or operate transmission infrastructure in the state unless they are part of an RTO, with two specific exceptions: consumer-owned utilities and utilities in an area of Maine where the retail electricity market is administered by the independent system administrator for northern Maine. The bill is presented as emergency legislation, driven by recent federal court decisions that suggest utilities required to join RTOs may not be eligible for a special bonus return on equity. The underlying motivation is to ensure that electricity rates charged to Maine ratepayers remain just and reasonable, and to prevent unnecessary inflation of electricity rates by preventing utilities from collecting a special bonus return on equity for transmission assets. The bill is designed to take effect immediately upon approval, in order to address potential rate increases before the annual electricity rate update on June 15th.

Transportation and Infrastructure

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=2038&snum=132